Tavel: Chainalysis Achieved Winner-Take-Most Dominance Without Explicit Network Effects
Sarah Tavel · #113 Sarah Tavel: The Value of Intellectual Rigor · Jun 15, 2021 · at 40:50
Benchmark General Partner Sarah Tavel explains how portfolio company Chainalysis established a dominant position in blockchain intelligence and compliance software.
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“And so chain analysis has become this de facto standard in the space. It just got into a space before other people saw the opportunity And because they were the leader, they were able to build more and more technology. You know, they're able to go across any blockchain now where they're, as they got bigger, they could amortize the cost of their engineering efforts across a broader and broader revenue base, which let them reinvest in the business and pull further and further away from any competition. And so now, you know, it's kind of a, that's one of those winner take most dynamics without a explicit network effect.”
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