Jeff Jordan, General Partner at Andreessen Horowitz, compares early customer acquisition dynamics at Google and Facebook to TikTok's paid growth model.
“That's not a categorical rule, because TikTok buys users at monstrous scale. But, you know, Google really didn't buy many users, Facebook didn't buy many users, you know, tick, tick, tick, tick.”
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More from Jeff Jordan
AssertionContradicted
Jordan: Amazon was the only profitable e-commerce business due to low defensibility
“Early on, I was a big proponent of that e-commerce was going to clean the clock of the department stores. I got the thesis half right. Share did shift. No one could make money other than Amazon because of there's just no defensibility, no barriers to entry.”
Jeff JordanJan 16, 2023▶ 15:52a16z GP Jeff Jordan: The Ultimate Guide to Two-Sided Marketplaces | 20VC #966 · 20VC with Harry Stebbings
Disclosure
Jordan: a16z Avoids Investing in Startups Reliant on Paid Marketing
“I am reluctant to invest in companies that, that require heavy paid marketing to build their audience.”
Jeff JordanJan 24, 2023▶ 9:12The Ultimate Guide for Building a Two-Sided Marketplace | a16z's Jeff Jordan · 20VC with Harry Stebbings
Disclosure
Jordan: a16z Avoided Fast Commerce, Viewing It as a Kozmo Redo
“We didn't make a bet in in fast commerce. That's one word that some of us internet veterans remember Cosmo and, you know, our concern was it's Cosmo redo redo without anything really new. On top of it. So we did not place a bet in that in that sector.”
Jeff JordanJan 24, 2023▶ 26:37The Ultimate Guide for Building a Two-Sided Marketplace | a16z's Jeff Jordan · 20VC with Harry Stebbings
Insight
Jordan: Demand Is the Primary Strategic Side in Two-Sided Marketplaces
“I have a belief that the demand side is, you know, kind of the, is the more, more strategic side because suppliers typically will go wherever the demand is. And so for me, keeping a healthy demand Bucket, you know, is what your suppliers are looking for.”
Jeff JordanJan 24, 2023▶ 33:38The Ultimate Guide for Building a Two-Sided Marketplace | a16z's Jeff Jordan · 20VC with Harry Stebbings
Insight
Jordan: Home Service Marketplaces Fail Due to Low Frequency and Leakage
“I think there is a real issue with leakage. The other is a issue with frequency except for lawn care and home cleaning. Almost all services are very, very infrequent and it's, it was very hard to build a brand.”
Jeff JordanJan 24, 2023▶ 35:32The Ultimate Guide for Building a Two-Sided Marketplace | a16z's Jeff Jordan · 20VC with Harry Stebbings
Disclosure
Jordan: Reluctant to invest in startups relying on paid marketing
“So I am reluctant to invest in companies that, that require heavy paid marketing to build their audience. You know, the best Concepts typically don't need, you know, they're so compelling, they don't need to buy users.”
Jeff JordanJan 16, 2023▶ 15:10a16z GP Jeff Jordan: The Ultimate Guide to Two-Sided Marketplaces | 20VC #966 · 20VC with Harry Stebbings
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