We explore network effects and investing in network effect businesses. We’re joined by James Currier, co-founder and general partner of NfX. We cover virality vs. network effects, tweaking rules and systems to take advantage of network effects, and network effects as a business strategy.

“Every company is its own work of art, and the founder is the artist.” – James Currier

EPISODE GUIDE (LINKS, QUOTES, NOTES, AND BOOKS MENTIONED)

https://www.danielscrivner.com/notes/james-currier1-outlier-academy-show-notes 

FULL TEXT TRANSCRIPT

https://www.danielscrivner.com/notes/james-currier-outlier-academy-transcript 

CHAPTERS

This episode is our definitive guide to network effects and investing in network effect businesses. In it we cover:

• (00:00:00) – Introduction
• (00:01:58) – James’ background and journey to NfX
• (00:07:50) – Defining network effects and why they are so powerful
• (00:11:20) – Virality vs. network effects
• (00:14:46) – Examples of businesses with network effects
• (00:24:57) – Tweaking rules and systems to take advantage of network effects
• (00:31:07) – Networks effects as a business strategy
• (00:33:58) – Investing in network effects businesses
• (00:40:26) – Advice for founders

ABOUT NFX

The name NfX is actually short for Network Effects, and James with his founding partner, Pete Flint, founded NfX after seeing the power of network effects, partially by doing research that confirms that 70% of all unicorns are companies with proven network effects driving their businesses. While NFX has become one of the world's leading thinkers on network effects, having published incredibly salient posts from 13 different network effects and counting, where they've now identified 16 different types of network effects, to their very popular self-help article titled Your Life is Driven by Network Effects, and their strategy is clearly working.

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