EA startup - non-profit sustainable marketplace

By Vincent van der Holst @ 2022-03-24T13:35 (+27)

TL;DR: I’m building a marketplace that donates all its profits to EA causes. It’s early stage but growing fast. What do you think about this direction? Sharing with relevant people would be appreciated, thanks!

Idea 

BOAS (website: boas.co) is the online marketplace where everything is sustainable - the products and how we operate. We give away all our profits (at least 5% of sales) to effective charities. It's a business model we call profit for non-profit (basically earn to give on a company level), and with that model, we want to show that businesses can be good at scale. Our mission is to grow the largest online marketplace, with the smallest possible footprint and the highest possible impact on people and the planet.

Potential impact

• The sustainable e-commerce is a huge market (1 trillion and growing fast)
• Few players will own most of it
• Let’s be one of those
• And donate all profits

Expected Revenue if this works

If we become the biggest sustainable marketplace in the Netherlands, we will have more than a billion in revenue, and if we manage to take over Europe that number is much higher.

How much will be donated if this works?

• 100% of profits will be donated
• Profits will be at least 5% of sales
• = donate billions each year

We intend to give away all of those profits, but at least 5% of sales. If it operates based on our business model, the biggest sustainable marketplace in the world will be able to donate billions to EA causes each year and become the biggest donor worldwide.

Expected Value (taking into account chance-of-success)

At 0.1% odds of becoming the biggest marketplace in NL, the expected value is 1-2 million euros in donations to effective charities

At 0.01% odds of becoming the biggest marketplace in Europe, the expected value is 3 million euros in donations to effective charities

At 0.01% odds of becoming the biggest marketplace in the World, the expected value is 24 million euros in donations to effective charities

Progress so far

Launched in January and 70% monthly unique user growth, currently at ~400 unique users per month

Talked to 100+ consumers and 25 brands

First 3 brands signed 

Team is now CEO, CTO, 3 interns and 2 advisors

Looking for funding

Reduce uncertainty - what would it take?

We need funding (30-50k USD) to show steady growth in brands signed up (100) and sales (1000 customers) until the end of 2022.

That will validate the business model assumptions and the market for this product, as well as validating that brands and customers care about the non-profit route we’re taking. 

Counterfactual 

I could earn to give (corporate job)

I could start a for-profit and do the founders pledge and earn to give

I could work on EA charity idea

I could work at an effective non-profit

Why it might fail/negative outcomes:

• Any money donated can't be used to grow the marketplace to become one of the biggest ones
• Non-profit might not be a big enough unique selling point for brands and customers to flock to the marketplace
• We’re unsure if a non-profit business model can receive the amounts of grants/funding needed to become a big marketplace 

Questions

• Considering the counterfactual, should I build this?
• Why is this idea going to fail?
• Do you think EA should invest in this? Why yes, why not?
• Do you know someone who would like to work on, advise on or invest in?