Fred Wilson, co-founder of Union Square Ventures, discusses how large web platforms leverage proprietary data and network effects for long-term dominance.
“I would even argue that Google benefits from network effects and the data that they have that, in their search business, I think, almost an insurmountable advantage because of the data asset that they have. And the network effects around that.”
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More from Fred Wilson
Insight
Wilson: Data is only defensible if it is proprietary first-party data
“The only defensibility that you can get with data is defensibility around your own data. If you're getting data from somebody else, it's not defensible, because they can give it to somebody else as well.”
Fred WilsonDec 19, 2013▶ 3:32Fred Wilson, USV // Data Driven NYC #18 // Sep 2013 (interviewed by Matt Turck)
Insight
Wilson: Software alone lacks defensibility without proprietary data and networks
“Shows the problem of thinking that software is any kind of defensible advantage. I don't think it is. But if there was something about The data, ah, and the network around that software that made it so that it wouldn't be easy to leave the first company and go…”
Fred WilsonDec 19, 2013▶ 6:55Fred Wilson, USV // Data Driven NYC #18 // Sep 2013 (interviewed by Matt Turck)
Insight
Wilson: Startups should build platform services on data rather than sell raw data
“I don't think selling the data is the right thing to do. I think the right thing to do is to build services on your platform that take advantage of the data that let the people who might buy the data from you instead come and build businesses And transact on y…”
Fred WilsonDec 19, 2013▶ 13:11Fred Wilson, USV // Data Driven NYC #18 // Sep 2013 (interviewed by Matt Turck)
Insight
Wilson: Consumer internet startups should build simple products before data science
“In consumer internet, even if big data and machine learning is going to be the thing that ultimately locks in your value proposition for the long haul, I don't think you get into the market and get the scale position that allows you to access that data with da…”
Fred WilsonDec 19, 2013▶ 23:39Fred Wilson, USV // Data Driven NYC #18 // Sep 2013 (interviewed by Matt Turck)
Disclosure
Wilson: USV will not invest in porn, spying, or gambling
“I won't invest in porn. I won't invest in spying. I won't invest in gambling. Those would be three things I wouldn't do.”
Fred WilsonDec 19, 2013▶ 25:14Fred Wilson, USV // Data Driven NYC #18 // Sep 2013 (interviewed by Matt Turck)
Insight
Wilson: Bootstrapping marketplaces with institutional users instead of grassroots is a mistake
“When entrepreneurs come in and say, We're gonna bootstrap you know, one side of our market, the demand side or the supply side, by going to institutions or going, you know, kind of bypassing the little guy and going to large chunks of supply or demand. That al…”
Fred WilsonDec 19, 2013▶ 32:31Fred Wilson, USV // Data Driven NYC #18 // Sep 2013 (interviewed by Matt Turck)
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