One of the biggest misconceptions around network effects (which are one of the key dynamics behind many successful and highly defensible software companies) is confusing growth with engagement. So how does one tell the difference between viral growth and network effects? How does one create network effects in different businesses? (Hint: it's not by accident!) How do you know when to hang in there because you see signs of network effects or just drop it and move on to something else? And what are some examples of teasing all of the above apart?
In this episode of the a16z Podcast -- based on an event we hosted and slide deck we released all about network effects -- a16z partners Anu Hariharan and Jeff Jordan (who cover all things marketplaces, consumer, and more) share (in conversation with Sonal Chokshi) their observations, insights, and experiences. Because, why reinvent the, er, flywheel?
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Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures.
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