The NFX Podcast

Ep. 6 - Case Studies: Network Effects In Action (NFX Masterclass)

Nov 18, 2022
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ANECDOTE

Trulia's Pivot

  • Trulia initially indexed real estate websites for free to demonstrate value.
  • During the 2008 recession, they pivoted to targeting individual agents, leading to an IPO and merger with Zillow.
INSIGHT

Facebook's Defensibility

  • Facebook's network effects make them incredibly defensible, starting with a direct network at Harvard.
  • They layered additional defensibilities like bandwagon effect, brand, and embedding.
INSIGHT

Bitcoin's Belief Network

  • Bitcoin's value comes from a shared belief in its future, similar to traditional currencies.
  • Unlike hierarchical currencies, Bitcoin relies on a decentralized network structure.
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