Anu Hariharan, partner at Andreessen Horowitz, outlines foreign capital dynamics in the Indian tech startup ecosystem.
Insight
Hariharan: Point-to-point ride sharing relies on scale economies, not network effects
“So I would say the general ride sharing, we think it's more supply side economies of scale. And what that means is the more drivers you have on the platform, you know, you can make sure that you get a good quality driver within five minutes, but that's where i…”
Opinion
Anu Hariharan: Brands scale under Sarnoff's law, not Metcalfe's law
“So for brands, we actually think it's more like Sarnav's law. You know, some people argue, yes, it has Some network effect, but not directly incredibly value to the user, which is why the value is not as steep as Metcalfe's law, for example.”
Insight
Hariharan: Local execution gives Indian and Chinese startups an edge
“I do think there's a lot of elements in execution that's quite different and local to those markets. That's very different from The U.S. So it's not necessary that a U.S. Player going into those markets has all the advantages. I think there are local advantage…”
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Hariharan: Indian Series A startups commonly employ 650 to 900 people
“For example, to give you an example, when you look at a series A, U.S. Startup, or a series B, if, you know, you sort of get surprised if they say I have 150 people or 200 people. Like, that's a lot of people. In India, it's quite common to say I have 650 or 9…”
Insight
Hariharan: Building Network Effects Is Easier on Mobile Than Web
“It was easier for platforms to build a network, I would argue, on mobile more than web.”
Insight
Hariharan: Marketplaces Do Not Inherently Possess Network Effects
“So I don't think that all marketplaces have network effects by definition. They have the potential, but different marketplaces are different at different stages of development in their evolution.”