Business Model describes the structural mechanism by which a company generates revenue and delivers value to its customers. Common private market business models include: Subscription / SaaS (recurring software fees), Marketplace (connecting buyers and sellers, typically taking a commission), Transactional (per-transaction fees), Lending / Fintech (interest or spread-based revenue), Asset-Heavy (owning and operating physical infrastructure), and Franchise.
Business Model is a key dimension for investor filtering because unit economics, scalability, and capital intensity vary dramatically by model. A SaaS business with high gross margins and low churn is valued differently from a marketplace with thin take rates or a logistics company with high capital expenditure. Alternatives.pe uses Business Model classifications to help investors find companies that match their preferred economic characteristics.