network effects

“I think they had a real belief that networks would be the defensible quality of the internet, or the defensible thing about building a business on the internet. Whereas, let's say, In prior businesses like, ah, Microsoft Office or Windows or any other software…”

“We did a large study of companies that were, have been formed since 1994, 337 companies worth over a billion. And if you look at the market caps, the combined market caps of all these companies and identify, you know, which of them had network effects at their…”

“There are some companies that have unlimited upside, things that have network effects, and in those cases, valuation doesn't matter as much.”

“Because engagement is a sign of network effect, not growth. This is where the confusion comes. Most people think every fast growing has a network effect. It doesn't. The retention is a strong sign of network effect.”

“Amazon is the prime example of a large company that started off as a first party business, which had no network effects, and they've done phenomenally well as they've scaled it.”

“I think the common confusion arises from the fact that people get confused with systems, nodes, technology, platforms, you know, and I think they forget that it is about measuring the incremental value to the existing user. As more users join it, and if that d…”

“If you are building your own product, It's very, very hard to argue that you're going to have the same kind of network effect that a platform business might have because your growth is going to be contingent on how quickly you can build inventory and how quick…”

“Kind of the way I think about it is that when there is a company that has the potential for a clear network effect and something's really working so much so that you feel like that company can really get away from you in terms of growth, then paying what does …”

“If you believe in the network effects of our business, it's a much more powerful paradigm to execute on multiple fronts of this network because the network converges faster.”

“You know, when we think about defensibility right now, the most obvious pattern that we've seen in the last 15 years now is really the concept of a network effect, right? The concept of a network effect seems to really be able to put in a chunk of defensibilit…”

“It's a better question for the other four, but I suspect it has something to do with Network effects, or user-generated content, or those types of concepts are, like, emotionally appealing to me. So if anyone walks in and uses those two phrases, I might have a…”

“At AIM, it was a similar kind of idea where you had these tens of millions of users, and because of those users, we were able to keep the product afloat even during times when the product quality was quite poor, The product strategy wasn't very crisp. Our exec…”

“You know, it's very rare that a business will be hundred percent organic. I can only think of a few examples, particularly the businesses that have network effects that are truly organic in nature”

“Almost all network effects are sublinear.”

“And largely as an investor, I'm a kind of a one trick pony. Everything I would like to talk about as an operator and an investor typically involves a network effect.”

“I think you definitely do past X thousand employees see some regression to the mean, and the art is constructing some accumulating advantages, let's say a network effect before that happens, because the momentum of a network effect can offset some of the slipp…”

“B to B software has very rarely had network effects, right? What it has had instead is more economies of scale.”

“So the first Player has a huge advantage. They have bigger density. They have therefore better pickup times in terms of the cars. They can therefore offer you a much better customer value proposition. So if you're coming in as a second player, it's generally a…”

“The businesses that succeed in a world where software costs approach zero will be built on network effects.”

“The companies that don't have network effects are going to struggle very significantly because then there's not really a defensible moat in the pure software associated with the products that they build.”