Getting the Flywheel Spinning: Why Marketplaces Are Tough to Launch (And How to Start Anyway) 

This morning, I spoke to an Arden student with a promising startup idea — a two-sided marketplace. He's got a clever concept with real potential. But, like so many marketplace founders, they’re stuck in the early stage catch-22: users on one side won’t sign up without the other side already there. 

What is a marketplace, exactly? In simple terms, it’s a platform that connects two distinct groups who need each other — buyers and sellers (like eBay), hosts and guests (like Airbnb), or freelancers and clients (like Fiverr). The platform doesn’t sell a product; it enables transactions between others. 

So, what’s the problem? Marketplaces depend on both sides showing up — but neither wants to be first. That’s what makes them so hard to start. 

This might sound counter-intuitive, but for student startup founders the key is to think smaller, sooner. Forget trying to launch a nationwide platform from day one. Instead, pick a tiny niche where you can generate real activity.  

Focus first on one side of the market – usually the one that’s harder to find or more valuable to attract. For example, if you’re building a marketplace for tutors, go out and recruit quality tutors manually before you even think about marketing to students. If you are building a marketplace for local services, focus on a single neighbourhood.  

Getting users on the platform is your priority. At first, doing things that don’t scale isn’t just OK – it's necessary. That could mean acting as the matchmaker yourself behind the scenes, offering users heavy discounts and freebies, or, dare I say it, even faking things on one side of your market to gain attention from users on the other side. It’s not about being perfect – it’s about creating the illusion of activity long enough to break the catch-22 and get real traction. 

Getting enough activity between buyers and sellers in a small, focused segment so that the marketplace starts to generate value on its own – that's when the flywheel begins to turn. 

Also, remember that marketplaces only succeed when they solve a real problem. People don’t join marketplaces just because they’re marketplaces — they join because you help them save time, make money, or solve a pain point. 

At the Arden Enterprise Incubator, we help student entrepreneurs navigate tough models like this. If you’ve got an idea for a marketplace — or any kind of venture — and you’re hitting roadblocks, let’s talk. These are hard problems, but they can be cracked with the right strategy and support. 

Come to our next Founder Friday or contact me directly bmcclure@arden.ac.uk 

If you're an Arden student or recent grad with a head full of ideas and a heart set on making a difference, RSA Spark could be the perfect launchpad. 

Run by the Royal Society of Arts (RSA), Spark is a global design challenge that invites students to tackle real-world issues — climate change, social inequality, community building, and more. It’s free to enter, open to all disciplines, and packed with opportunities to learn, create, and get your work seen by influential people. 

Whether you're passionate about greener cities, reimagining railways, transforming community spaces, or opening-up creative careers to everyone, there’s a brief to suit you. You can enter solo or as a team, and RSA offers plenty of support—like optional online workshops, peer feedback, and even digital badges you can add to your CV. 

The prizes are a big deal: top entries will be showcased at RSA House in London, and winners can receive cash awards, mentoring, seed funding, and even a one-year RSA Fellowship. But the real win? Making something that could genuinely make a difference. 

Here at Arden University, we're encouraging students to get involved. Ben McClure, Lead of the Arden Enterprise Incubator and an RSA Fellow, is available to support Arden students with their applications. He can help you make sense of the brief, sharpen your ideas, and guide you through the submission process. 

You can reach Ben at bmcclure@arden.ac.uk 

Key dates to know: 

Final deadline: 30 June 2025 at 5pm GMT That doesn't leave much time, you'll have to hustle!

Showcase: September 2025 at RSA House, London 

So — if you’ve ever thought someone should really fix that, maybe that someone is you. 

Explore the briefs and find out more at RSA Spark Website. And if you’re an Arden student ready to jump in—Ben’s here to help. 

Paul Marshall, an Arden University student, is the founder of Focus Cyberspace — a bold EdTech startup aiming to transform how we teach and learn using immersive technology. Combining virtual reality (VR) and artificial intelligence (AI), Paul is building a platform that delivers personalised, inclusive, and engaging learning experiences — starting with the learners who are most often left behind. 

Paul’s motivation for launching Focus is deeply personal. His experiences have instilled in him a passion for making education more inclusive and accessible, particularly for neurodiverse learners.  

His personal experience has become his fuel for innovation: 

 “Education needs to evolve,” he says. “It needs to work for everyone, not just for those who fit the system’s mould.” 

Focus Cyberspace is still early-stage — but Paul’s ambition is anything but small. His vision is to develop a VR learning platform where students can explore historical events, conduct virtual science experiments, and receive real-time support from AI-powered virtual tutors. The system will analyse student interactions to tailor learning paths that fit individual styles — visual, auditory, or experiential. 

While the vision is big, Paul knows execution starts with small first steps. With guidance from the Arden Enterprise Incubator, he’s now focusing on a specific wedge opportunity: delivering immersive, accessible content for students with Special Educational Needs (SEN). This use case aligns with Focus’s mission and gives the team a concrete way to build, test, and improve the product with real-world feedback and insights. 

Paul’s background — from managing events to co-founding creative ventures — shows his entrepreneurial drive. But he’s the first to admit that building a tech platform is a steep learning curve. That’s why he’s surrounding himself with mentors, collaborators, and technical support through Arden and beyond. He’s also in early discussions about building a prototype that can be tested by educators, with a view toward securing grant or angel investment. 

At the Arden Enterprise Incubator, we champion bold ideas that tackle real-world problems—and HealthBlokk is one of the most promising ventures currently emerging from our student founder community. 

Founded by Shideh Heravi, an Arden Psychology student with a decade of experience in digital product design and user experience, HealthBlokk is on a mission to transform the way people with food allergies, intolerances, and dietary restrictions navigate eating out. 

The problem is all too familiar: more than 30% of the population lives with a dietary restriction. Whether it’s gluten, dairy, nuts, or a specific health goal, the stress of unclear menus, limited options, or being misunderstood often makes eating out feel like a chore — and a gamble. 

HealthBlokk is building a solution: a personalised food discovery platform that will recommend trusted restaurants and meals based on your specific dietary needs. But more than an app, it’s a movement for dignity, ease, and inclusivity in dining. 

Shideh explains it well:  

“I’ve always loved turning complex problems into simple, meaningful solutions. HealthBlokk is for people who are tired of asking, explaining, or compromising—just to eat a meal with friends.” 

Currently, HealthBlokk team is refining its concept, and preparing for a beta product launch. But even before the tech is ready, Arden’s community can play a major role in shaping the future of this platform. 

Here’s how you can support HealthBlokk: 

This isn’t just another student startup. It’s a chance to help create something meaningful, inclusive, and grounded in real-life needs. Together, we can make eating out easier, safer, and more joyful for everyone. 

Interested in helping? Contact the Arden Enterprise Incubator at aei@arden.ac.uk