The Network Effects Bible is a comprehensive collection of terms and insights related to network effects all in one place. Produced by James Currier & the NFX team (www.nfx.com), an early-stage venture capital firm started by entrepreneurs who've built 10 network effect companies with more than $10 billion in exits across multiple industries and geographies.
Read the full Network Effects Bible at: https://www.nfx.com/post/network-effects-bible/
Follow us on Twitter @NFX
This is theoriginal AirBnB pitch deck. Airbnb founders use this pitch deck to raise $600K from VCs and angel investors in 2008.
YOU MIGHT ALSO LIKE THESE PITCH DECK EXAMPLES & TEMPLATES:
> Sequoia Capital pitch deck template @ https://pitchdeckcoach.com/sequoia-capital-pitch-deck
> FREE pitch deck template download @ https://pitchdeckcoach.com/free-pitch-deck-template
> Pitch deck guide with hints, tips, and a worked example @ https://pitchdeckcoach.com/pitch-deck-template
NEED HELP WITH YOUR PITCH DECK?
See how I can help then book a free call @ https://pitchdeckcoach.com/
MORE PITCH DECK RESOURCES @ https://pitchdeckcoach.com/pitch-deck-template#resources
🔮 Want more VC/investment startup pitch decks? We’ve centralised ALL succesful investor pitch decks at: https://chagency.co.uk/getstartupfunding — check all of them out
🔮 The effort is adhering to the ideology of “The Future Of Freemium” — read more here: https://chagency.co.uk/blog/ceo/the-future-of-freemium-how-to-get-peoples-attention/
🔮 Our library of pitch decks will not have any advertisement, only a signature. We are a design agency that helps SaaS CEOs reduce user churn.
This document provides guidance on how to structure an investor presentation, including key sections to cover and how to frame each section. The sections discussed are: setting the table, opportunity size, problem, solution, how it works, competition, unit economics, early traction, go-to-market strategy, milestones, financing needs, team, and appendix. For each section, the document recommends focusing on one key point to convey and considering what investors are thinking to ensure addressing their concerns. The overall goal is to tell a compelling story about the problem being solved and why the company is well-positioned for success.
Platform Revolution - Ch 02 Network Effects: Power of the PlatformGeoff Parker
Contents: (1) Two sided market definitions (2) How demand- and supply-side economies of scale differ (3) Free goods: when and why to subsidize one side or the other (4) How switching and homing costs affect winner take all outcomes.
These slides provide course materials that complement the second chapter of Platform Revolution: How Networked Markets are Transforming the Economy and How to Make Them Work for You. The final slides provide additional reading suggestions for industry and academia.
The Platform Manifesto - 16 principles for digital transformationSangeet Paul Choudary
The Platform Manifesto is a collection of principles that succinctly defines how different aspects of business transform in a world of digital platforms.
MySQL fundraising pitch deck ($16 million Series B round - 2003)Robin Wauters
MySQL AB is seeking a $16 million Series B round of funding to accelerate its growth strategy. As the world's most popular open source database, MySQL has over 4 million installations and is included in most Linux distributions. MySQL AB employs a dual licensing model, offering the software under an open source license and commercially. The funding will allow the company to further enter the enterprise market and maintain its leadership position across web, embedded, and enterprise databases which represent a potential $9 billion market opportunity.
Twilio is a modern communication API used by developers for establishing communications via SMS, phone, and video call.
Twilio was founded in 2008 by Former Amazon manager Jeff Lawson. Today, the San Francisco-based firm's communications platform is used by more than 150,000 businesses worldwide, including major technology giants like Airbnb, Uber, and Stripe.
Here's an inside look at Twilio's 2010 pitch deck, used to raise a $120M Series B from Bessemer and Union Square.
Read more:
bestpitchdeck.com/twilio-series-b
vip.graphics/twilio-pitch-deck
Chewse is a self-service platform for ordering corporate meals that has served over 20,000 meals and can save companies $30,000-$500,000 per year on catering costs. It has grown from serving $22.1k in meals in November 2012 to $5.6k in December 2012 and $4.4k in January 2013. The corporate food market is valued at $33 billion with large cities like Los Angeles valued at $1.4 billion alone.
A pitch deck template with sample copy to help technology startups sell their business concept to angel investors and VCs. Inspired by pitch deck words of wisdom from Dave McClure (500 Startups), AirBnb, Guy Kawasaki and Venture Hacks (the folks behind AngelList).
YOU MIGHT ALSO LIKE THESE PITCH DECK EXAMPLES & TEMPLATES:
> Airbnb pitch deck @ https://pitchdeckcoach.com/airbnb-pitch-deck
> Sequoia Capital pitch deck template @ https://pitchdeckcoach.com/sequoia-capital-pitch-deck
> FREE pitch deck template download @ https://pitchdeckcoach.com/free-pitch-deck-template
> Pitch deck guide with hints, tips, and a worked example @ https://pitchdeckcoach.com/pitch-deck-template
NEED HELP WITH YOUR PITCH DECK?
See how I can help then book a free call @ https://pitchdeckcoach.com/
MORE PITCH DECK RESOURCES @ https://pitchdeckcoach.com/pitch-deck-template#resources
The document summarizes Square, a mobile payments startup. Square provides merchants with a free card reader that plugs into smartphones and tablets, allowing them to accept credit card payments with low fees of 2.75% per transaction. Square has a simple pricing model and signup process with no long-term commitments. The management team has successful experience in payments and technology. Square sees a large market opportunity in mobile payments given traditional card readers are expensive and inconvenient for small businesses. Square aims to acquire customers through wide exposure on social media and in stores. It has a first-mover advantage and plans to defend its position through brand recognition and compatibility across devices. Financial projections estimate high revenue growth and profitability that would generate strong returns for new
Inilah pitch deck dari raksasa media digital, Buzzfeed. Bagi kamu yang memiliki model bisnis yang serupa dengan BuzzFeed, mungkin kamu dapat terinspirasi dari pitch deck ini.
Planning Hype - Engineering hype before a product launchJulian Cole
1. The document discusses strategies for generating hype and interest for a product before its launch, known as "planning hype".
2. It identifies five key triggers that can be used to create planning hype: scarcity, signalling, credibility, curiosity gaps, and creating a sense of FOMO.
3. Examples are provided for each trigger, describing real campaigns that successfully used those techniques to generate excitement and demand for products before they were available.
Design Strategies to galvanize EcosystemsSimone Cicero
Crafting a power "Shaping Strategy" and galvanize an entire ecosystem to join a platform for collaborative value creation is the new strategy to transform markets in the XXIst century.
Networked business models are transforming markets, communities and production through network effects.
Presentation given in Aalborg University for the BizMedia2016 Event
Consider first that platforms are becoming a dominant form of business organization. Then consider how you transition an existing product to a platform. This talk illustrates steps to make the transition. It then describes what an open business model looks like and compares differences in openness of Apple, Google, Microsoft and others.
Optii is an AI-powered supply chain optimization solution that automates supply chain planning. It uses advanced modeling and machine intelligence to identify the optimal configuration of a supply chain network to maximize service levels while minimizing costs. Optii targets businesses that currently use manual planning systems by automating the configuration without requiring replacements of existing infrastructure. The company has validated its solution through proofs-of-concept and pilots with industry-leading customers. It is seeking seed funding to further develop its capabilities and expand its sales and marketing efforts.
Peter Thiel's Venture Capital Pitch Deck TemplateAA BB
Want more VC/investment startup pitch decks? We’ve centralised ALL succesful investor pitch decks at: https://chagency.co.uk/getstartupfunding — check all of them out
The effort is adhering to the ideology of “The Future Of Freemium” — read more here: https://chagency.co.uk/blog/ceo/the-future-of-freemium-how-to-get-peoples-attention/
Our library of pitch decks will not have any advertisement, only a signature. We are a design agency that helps SaaS CEOs reduce user churn.
The document discusses the history and development of computer networks. It explains that early computer systems were mainframes designed for time-sharing that connected multiple users. In the 1960s, the military developed wide-area networks to allow communication between bases. Networking continued to expand in the 1970s-1980s as businesses, schools, and governments needed faster networks to handle more users. The document also provides background on the development of personal computers and modems, which enabled new types of networks in homes and small businesses.
Net neutrality aims to ensure equal access to the internet for all users and companies by preventing internet service providers from favoring or blocking certain types of online content. Proponents argue this keeps the internet open and competitive, while opponents believe net neutrality discourages innovation. There is debate around how much regulation is optimal and whether some prioritization of internet traffic could be reasonable. The issue involves balancing open access with the business interests of internet companies.
COMMUNICATIONS OF THE ACM November 2004Vol. 47, No. 11 15.docxmonicafrancis71118
COMMUNICATIONS OF THE ACM November 2004/Vol. 47, No. 11 15
N
etworks are hot. The
Internet has made it pos-
sible to observe and mea-
sure linkages
representing relationships of
all kinds. We now recognize
networks everywhere: air
traffic, banking, chemical
bonds, data communications,
ecosystems, finite element
grids, fractals, interstate
highways, journal citations,
material structures, nervous
systems, oil pipelines, orga-
nizational networks, power
grids, social structures, trans-
portation, voice communica-
tion, water supply, Web
URLs, and more.
Several fields are collabo-
rating on the development of
network theory, measurement,
and mapping: mathematics
(graph theory), sociology (net-
works of influence and communi-
cation), computing (Internet), and
business (organizational net-
works). This convergence has pro-
duced useful results for risk
assessment and reduction in com-
plex infrastructure networks,
attacking and defending networks,
protecting against network con-
nectivity failures, operating busi-
nesses, spreading epidemics
(pathogens as well as computer
viruses), and spreading innova-
tion. Here, I will survey the fun-
damental laws of networks that
enable these results.
Defining a Network
A network is usually defined as a
set of nodes and links. The nodes
represent entities such as persons,
machines, molecules, documents,
or businesses; the links represent
relationships between pairs of
entities. A link can be directed
(one-way relationship) or undi-
rected (mutual relationship). A
hop is a transition from one node
to another across a single link
separating them. A path is a series
of hops. Networks are very gen-
eral: they can represent any kind
of relation among entities.
Some common network
topologies (interconnection pat-
terns) have their own names:
clique or island (a connected sub-
network that may be isolated
from other cliques), hierarchical
network (tree structured), hub-
and-spoke network (a special
node, the hub, connected directly
to every other node), and multi-
hub network (several hubs con-
nected directly to many nodes).
Some network topologies are
planned, such as the electric grid,
the interstate highway system, or
Network Laws
M
IC
H
A
EL
S
LO
A
N
Peter J. Denning
Many networks, physical and social, are complex and scale-invariant.
This has important implications from the spread of epidemics and
innovations to protection from attack.
The Profession of IT
16 November 2004/Vol. 47, No. 11 COMMUNICATIONS OF THE ACM
the air traffic system; others are
unplanned. In his seminal papers
about the Internet, Paul Baran
proposed that a planned, distrib-
uted network would be more
resilient to failures than a hub-
and-spoke network.
A host of physical systems eas-
ily fit a network model. Perhaps
less obvious is that human social
networks also fit the model. The
individuals of an organization are
linked by their relationships—
who emails whom, who seeks
advice from whom, or who influ-
ences w.
The Technology Development Of The Global NetworkCandice Him
The document discusses the development of global networks through technology. It explains how the internet has connected people around the world and created new opportunities for entrepreneurs. Social media platforms allow celebrities to directly engage with fans, though they are also used for marketing. Search engine optimization is important for getting websites exposure and driving traffic. The ranking of websites is influenced by social media activity on the site.
What is internet architecture? - (Darren's Study Guide: CompTIA A+, 220-1001 ...BDDazza
The document discusses the architecture of the Internet. It describes the Internet as a collection of thousands of independent networks that interconnect using the TCP/IP protocol. This allows any network to communicate with any other network. The architecture is hierarchical, with small local networks connecting to medium regional networks and then large national backbones. This hierarchy and the use of common protocols allows the Internet to function as a single global network. The original architecture was designed to promote innovation but is changing in ways that may reduce innovation.
The document discusses network neutrality and opposing views on the topic. It summarizes Barbara van Schewick's view that without network neutrality rules, users' ability to access lawful internet content of their choice is not guaranteed. It also summarizes David Farber's opposing view that the internet developed without government intervention and that regulating it now would slow its evolution. The document provides context on both sides of the network neutrality debate.
The document provides an overview of the Open System Interconnection Model (OSI) and the Telecommunications Act of 1996. The OSI is a 7-layer model that defines a framework for network communication. The layers include the physical, data link, network, transport, session, presentation and application layers. The Telecommunications Act of 1996 overhauled US communications law and allowed any communications firm to compete in the market through fair practices. It impacted telephone, cable, broadcast and educational services. The Act also included provisions for controlling television content and preventing undue concentration in media ownership.
Bill gurleys-above-the-crowd-compilation (1)tylerboone
This document discusses how backhoes, which are used to lay cable for telecommunications companies, do not follow Moore's Law of increasing processing power over time like computers do. It argues this has implications for the computer and internet industries, as their growth depends on infrastructure built by equipment like backhoes. It then analyzes five issues - internet intelligence, bandwidth constraints, the value of internet telephony, delivering all media over IP, and unlimited pricing - from a non-computer-centric viewpoint, challenging common assumptions. The document concludes that expectations for the internet may be unrealistic given infrastructure limitations.
The white paper discusses big data in the context of machine-to-machine communications and the internet of things. It introduces the concepts of "subnets of things," which are islands of interconnected devices within a common domain, and "tipping points," which are points at which the network effects of a data community drive further development. The paper examines opportunities for big data analytics within emerging subnets of things and identifies six key themes: the emergence of subnets, tipping points, the business case, qualities of big data, opportunities for operators, and challenges. Subnets are seen as stepping stones toward a full internet of things.
MECHANISMS FOR DIGITAL TRANSFORMATION IN THE EDUCATION AND HEALTHCARE SECTORS...IJNSA Journal
This paper argues for the consideration of a decentralized, open, interoperable identity framework as a secure, scalable, user-centered meta-platform capable of leveraging many aggregate network advantages and delivery options for education and healthcare providers. An overview of the shortfalls and vulnerabilities of the current Internet and systems for identity management is first explained, followed by a summary of the status of development and primary proponents of decentralized, blockchain-enabled, self-sovereign identification (SSI). An examination of the Key Event Receipt Infrastructure (KERI) open-source decentralized key management infrastructure (DKMI) and its primary root-of-trust in self-certifying identifiers (SCID) is evaluated. This paper recommends KERI for consideration as a potential meta-platform overlay and solution for both the education and health industries as a means of attaining their primary goal of being more user versus institution-centric in their core interactions and processes. Finally, some pathways for future research are recommended.
Network security is becoming increasingly important as more data needs to be monitored and protected from threats. Protecting a network involves various factors like password authentication, access control, software updates, antivirus software, firewalls, and intrusion detection tools. As threats become more sophisticated, companies need security departments and must go beyond just firewalls to adequately safeguard their networks and data.
Least Cost Influence by Mapping Online Social Networks paperpublications3
Abstract: The online social network has become popular for sharing the information. Online social networks exhibit many platforms to create awareness of new products. In recent time Least cost Influence problem to find minimum number of seed user is most important topic in online social networks. The eventual target is to find the least advertising cost set of users which produce enormous influence. In existing many diffusion models are used. In this paper the stochastic threshold model is used to find the seed user in multiple online social networks to maximize the influence. This model decreases the processing time comparing to the other models.
Keywords: Stochastic threshold model, influence, diffusion, multiple networks, online social networks.
Title: Least Cost Influence by Mapping Online Social Networks
Author: Bessmitha S, Shajini N
ISSN 2350-1022
International Journal of Recent Research in Mathematics Computer Science and Information Technology
Paper Publications
This letter discusses the transition from current 4G wireless networks to future 5G networks. It notes that 5G networks will enable more customized, localized networks tailored to specific end uses and vertical industries, rather than a "one size fits all" approach. The letter provides examples of different potential 5G network architectures and slices that could be implemented for uses like mobile broadband, mission critical IoT, private networks for industries like healthcare and airports. It argues the FCC should consider how to structure licensing and policies to accommodate this more heterogeneous 5G future with specialized, localized networks.
An Empirical Study On IMDb And Its Communities Based On The Network Of Co-Rev...Rick Vogel
The document presents an empirical study on the online movie database IMDb and its social network of movie reviewers. Data was collected on movies and reviews from IMDb and a social network was constructed based on common reviewers between movies. Analysis of the network showed it exhibited power-law degree distribution, small average path length, high clustering coefficient, and scale-free and small-world properties, indicating strongly connected communities. Community detection algorithms identified tightly knit subgroups with diverse interests beyond movie genres.
This document discusses computer networks and their classification. It defines the goals of computer networks as resource sharing without regard to physical location. It classifies networks into personal, local, metropolitan and wide area networks. The document then discusses how computer networks enable communication and collaboration between employees through technologies like email, video conferencing, desktop sharing and e-commerce. It explains how networks allow businesses to place electronic orders and enhance efficiency.
Consumidores Digitais: The Executive's Guide to the Internet of Things (ZD Net)Consumidores Digitais
A Internet das Coisas, ou Machine-to-Machine (M2M), é um dos temas mais atuais na tecnologia. Neste guia está o que os líderes empresariais precisam saber para potencializar seus benefícios.
"Hands-on development experience using wasm Blazor", Furdak Vladyslav.pptxFwdays
I will share my personal experience of full-time development on wasm Blazor
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What conclusions we made and what mistakes we committed
"Building Future-Ready Apps with .NET 8 and Azure Serverless Ecosystem", Stan...Fwdays
.NET 8 brought a lot of improvements for developers and maturity to the Azure serverless container ecosystem. So, this talk will cover these changes and explain how you can apply them to your projects. Another reason for this talk is the re-invention of Serverless from a DevOps perspective as a Platform Engineering trend with Backstage and the recent Radius project from Microsoft. So now is the perfect time to look at developer productivity tooling and serverless apps from Microsoft's perspective.
Generative AI technology is a fascinating field that focuses on creating comp...Nohoax Kanont
Generative AI technology is a fascinating field that focuses on creating computer models capable of generating new, original content. It leverages the power of large language models, neural networks, and machine learning to produce content that can mimic human creativity. This technology has seen a surge in innovation and adoption since the introduction of ChatGPT in 2022, leading to significant productivity benefits across various industries. With its ability to generate text, images, video, and audio, generative AI is transforming how we interact with technology and the types of tasks that can be automated.
Keynote : Presentation on SASE TechnologyPriyanka Aash
Secure Access Service Edge (SASE) solutions are revolutionizing enterprise networks by integrating SD-WAN with comprehensive security services. Traditionally, enterprises managed multiple point solutions for network and security needs, leading to complexity and resource-intensive operations. SASE, as defined by Gartner, consolidates these functions into a unified cloud-based service, offering SD-WAN capabilities alongside advanced security features like secure web gateways, CASB, and remote browser isolation. This convergence not only simplifies management but also enhances security posture and application performance across global networks and cloud environments. Discover how adopting SASE can streamline operations and fortify your enterprise's digital transformation strategy.
Cracking AI Black Box - Strategies for Customer-centric Enterprise ExcellenceQuentin Reul
The democratization of Generative AI is ushering in a new era of innovation for enterprises. Discover how you can harness this powerful technology to deliver unparalleled customer value and securing a formidable competitive advantage in today's competitive market. In this session, you will learn how to:
- Identify high-impact customer needs with precision
- Harness the power of large language models to address specific customer needs effectively
- Implement AI responsibly to build trust and foster strong customer relationships
Whether you're at the early stages of your AI journey or looking to optimize existing initiatives, this session will provide you with actionable insights and strategies needed to leverage AI as a powerful catalyst for customer-driven enterprise success.
TrustArc Webinar - Innovating with TRUSTe Responsible AI CertificationTrustArc
In a landmark year marked by significant AI advancements, it’s vital to prioritize transparency, accountability, and respect for privacy rights with your AI innovation.
Learn how to navigate the shifting AI landscape with our innovative solution TRUSTe Responsible AI Certification, the first AI certification designed for data protection and privacy. Crafted by a team with 10,000+ privacy certifications issued, this framework integrated industry standards and laws for responsible AI governance.
This webinar will review:
- How compliance can play a role in the development and deployment of AI systems
- How to model trust and transparency across products and services
- How to save time and work smarter in understanding regulatory obligations, including AI
- How to operationalize and deploy AI governance best practices in your organization
Self-Healing Test Automation Framework - HealeniumKnoldus Inc.
Revolutionize your test automation with Healenium's self-healing framework. Automate test maintenance, reduce flakes, and increase efficiency. Learn how to build a robust test automation foundation. Discover the power of self-healing tests. Transform your testing experience.
How UiPath Discovery Suite supports identification of Agentic Process Automat...DianaGray10
📚 Understand the basics of the newly persona-based LLM-powered Agentic Process Automation and discover how existing UiPath Discovery Suite products like Communication Mining, Process Mining, and Task Mining can be leveraged to identify APA candidates.
Topics Covered:
💡 Idea Behind APA: Explore the innovative concept of Agentic Process Automation and its significance in modern workflows.
🔄 How APA is Different from RPA: Learn the key differences between Agentic Process Automation and Robotic Process Automation.
🚀 Discover the Advantages of APA: Uncover the unique benefits of implementing APA in your organization.
🔍 Identifying APA Candidates with UiPath Discovery Products: See how UiPath's Communication Mining, Process Mining, and Task Mining tools can help pinpoint potential APA candidates.
🔮 Discussion on Expected Future Impacts: Engage in a discussion on the potential future impacts of APA on various industries and business processes.
Enhance your knowledge on the forefront of automation technology and stay ahead with Agentic Process Automation. 🧠💼✨
Speakers:
Arun Kumar Asokan, Delivery Director (US) @ qBotica and UiPath MVP
Naveen Chatlapalli, Solution Architect @ Ashling Partners and UiPath MVP
DefCamp_2016_Chemerkin_Yury-publish.pdf - Presentation by Yury Chemerkin at DefCamp 2016 discussing mobile app vulnerabilities, data protection issues, and analysis of security levels across different types of mobile applications.
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When looking for a good software utility to convert Outlook OST files to PST format, it is important to find one that is easy to use and has useful features. WebbyAcad OST to PST Converter Tool is a great choice because it is simple to use for anyone, whether you are tech-savvy or not. It can smoothly change your files to PST while keeping all your data safe and secure. Plus, it can handle large amounts of data and convert multiple files at once, which can save you a lot of time. It even comes with 24*7 technical support assistance and a free trial, so you can try it out before making a decision. Whether you need to recover, move, or back up your data, Webbyacad OST to PST Converter is a reliable option that gives you all the support you need to manage your Outlook data effectively.
Demystifying Neural Networks And Building Cybersecurity ApplicationsPriyanka Aash
In today's rapidly evolving technological landscape, Artificial Neural Networks (ANNs) have emerged as a cornerstone of artificial intelligence, revolutionizing various fields including cybersecurity. Inspired by the intricacies of the human brain, ANNs have a rich history and a complex structure that enables them to learn and make decisions. This blog aims to unravel the mysteries of neural networks, explore their mathematical foundations, and demonstrate their practical applications, particularly in building robust malware detection systems using Convolutional Neural Networks (CNNs).
UiPath Community Day Amsterdam: Code, Collaborate, ConnectUiPathCommunity
Welcome to our third live UiPath Community Day Amsterdam! Come join us for a half-day of networking and UiPath Platform deep-dives, for devs and non-devs alike, in the middle of summer ☀.
📕 Agenda:
12:30 Welcome Coffee/Light Lunch ☕
13:00 Event opening speech
Ebert Knol, Managing Partner, Tacstone Technology
Jonathan Smith, UiPath MVP, RPA Lead, Ciphix
Cristina Vidu, Senior Marketing Manager, UiPath Community EMEA
Dion Mes, Principal Sales Engineer, UiPath
13:15 ASML: RPA as Tactical Automation
Tactical robotic process automation for solving short-term challenges, while establishing standard and re-usable interfaces that fit IT's long-term goals and objectives.
Yannic Suurmeijer, System Architect, ASML
13:30 PostNL: an insight into RPA at PostNL
Showcasing the solutions our automations have provided, the challenges we’ve faced, and the best practices we’ve developed to support our logistics operations.
Leonard Renne, RPA Developer, PostNL
13:45 Break (30')
14:15 Breakout Sessions: Round 1
Modern Document Understanding in the cloud platform: AI-driven UiPath Document Understanding
Mike Bos, Senior Automation Developer, Tacstone Technology
Process Orchestration: scale up and have your Robots work in harmony
Jon Smith, UiPath MVP, RPA Lead, Ciphix
UiPath Integration Service: connect applications, leverage prebuilt connectors, and set up customer connectors
Johans Brink, CTO, MvR digital workforce
15:00 Breakout Sessions: Round 2
Automation, and GenAI: practical use cases for value generation
Thomas Janssen, UiPath MVP, Senior Automation Developer, Automation Heroes
Human in the Loop/Action Center
Dion Mes, Principal Sales Engineer @UiPath
Improving development with coded workflows
Idris Janszen, Technical Consultant, Ilionx
15:45 End remarks
16:00 Community fun games, sharing knowledge, drinks, and bites 🍻
3. Roadmap
Part I - Why Network Effects Are Important
Part II - How Networks Work
Part III - Network Properties
Part IV - Building and Maintaining Network Effects
Part V - Related Concepts
3
5. 70% of the value created in technology since 1994 has been driven by
network effects. Still, too few Founders understand network effects
well, nor know how to design them into products.
5
6. There are 4 main
defensibilities in the
digital world:
Scale, Embedding, Brand,
and Network Effects.
Of these four, network effects
are the most powerful.
6
8. The NFX map applied to
category-leading companies
Network Effects
Case Studies
9. We don’t think most people really understand Facebook yet. It is
the most powerful network effects company we’ve ever seen, with
no less than six of the thirteen known network effects currently
working in its favor. On top of that, Facebook has fortified itself
with all three other defensibilities: brand, scale, and embedding.
Network effects have defined Facebook throughout their history.
10 years ago we wrote that Google should buy Facebook at any
cost because of their powerful network effects — and time has
more than vindicated the argument. More than any other factor,
Network Effects predict the future of Facebook.
Read the full case study here.
9
10. Trulia revolutionized the US real estate market by successfully
creating an online marketplace for real estate. Trulia’s Founder
& former CEO Pete Flint (currently a managing partner at NFX)
says Trulia built three distinct types of network effects into the
core of its business — data, marketplace, and market network
— in order to achieve success, leading to a massive $3.5 billion
exit and an industry-shaping merger.
Read the full case study here.
10
11. Most people think of Uber as a true 2-Sided Marketplace. As
shown in the NFX Map, true 2-Sided Marketplaces have some of
the most powerful network effects and therefore strong
defensibility. But, in reality, Uber is an asymptotic marketplace
which has much weaker network effects. For this and other
reasons, Uber is more vulnerable than most realize.
Read the full case study here.
11
13. Networks are any set
of nodes and links
Nodes are network participants. Not all
nodes are equal in function and importance.
Central nodes have a high relative number
of links, and marginal nodes have fewer
links.
Network size can be measured by the total
number of nodes in a network, and degree
is a measure of the number of links each
node has.
Links are the connections between nodes in
a network. Links vary in terms of
directionality, the strength of the
connection, and the frequency of activity.
Network density is the proportion of links
to nodes within a network.
Read more about Nodes and Links
13
14. Network
Density
Network density is the ratio of its links to nodes. The higher the ratio, the greater the density of the network.
Typically, the higher the density of the network, the more powerful its network effects are.
Founders should build products to promote higher network density. Within a network, density is usually
distributed unevenly. At the beginning, Founders should typically focus on the “white-hot center” of your
network, where the density and activity are highest, and let the network grow from there.Read more about Network Density
14
15. Directionality
A link between nodes can be either
directed or undirected.
Directed links denote one-way
relationships. When the interaction
between one node and another isn’t
reciprocated, it’s a directed link.
Undirected links are two-way,
reciprocal relationships. The
interaction between two nodes on a
network with undirected links flows
both ways.
Read more about Directionality
15
16. One-to-One vs.
One-to-Many
Relationships between nodes in a network can be one-to-one, or they can be one-to-many.
YouTube is an example of a network with one-to-many links (accounts with large
followings that they don’t follow back).
Facebook has one-to-one connections at its foundation.
Read more about One-to-One
vs. One-to-Many
16
17. Clustering
Within real-world networks, nodes
are unlikely to be dispersed evenly.
They tend to cluster or form local
groupings that are more tightly knit
than the network at large.
If you look at how you use services
like Slack or Facebook Messenger,
where you form subgroupings that
are more tightly-knit and active than
the broader network, you can see
some examples of clustering.
A “clustering coefficient” measures
the degree of clustering in a network.
Often, the higher the clustering
coefficient, the faster the value of the
network increases as usage grows.
Read more about Clustering
17
18. Critical Mass
The critical mass of a network
refers to the point at which the
value produced by the network
exceeds the value of the product
itself and of competing products.
Most products with network effects
must ultimately reach critical mass
in order to fully take advantage of
the defensibility provided by their
network effects.
Before the size of the network
reaches critical mass, the product
remains quite vulnerable and may
not have much value to users.
Read more about Critical Mass
18
19. The Network
“Laws”
These laws describe the rate at which network value increases as they scale.
Sarnoff’s Law describes broadcast networks, which increase in value in proportion to N (with N being the
number of nodes).
Metcalfe’s Law describes networks without clustering, which grow in value at a geometric rate (N^2).
Reed’s Law applies to networks with clusters, which increase in value at an exponential rate (2^N)Read more about the Network Laws
19
21. Irregularity
Real-world networks tend
to have clusters, hot spots,
and dead spots.
This is because complex
systems have
irregularities. The nature
and configuration of
nodes and links can vary
widely throughout a
single network.
For Founders, it’s
important to recognize
these irregularities and go
after the densest, most
active “white-hot center”
of the network.
Read more about Irregularity
21
22. Real Identity,
Pseudonymity,
& Anonymity
Many network effect businesses require users to create a profile that’s visible to other nodes in
the network. Networks with profiles tied to a node’s real identity, like your real personal name or
real company name, are typically more effective at building network effects than networks with
pseudonymous profiles (e.g. user-generated handles like “Tiger123”) or completely anonymous
networks.
Read more about network identity
22
23. Asymmetry
This term relates mostly to
marketplaces, whether that
marketplace is 1, 2, 3, or N-sided.
In nearly every marketplace, one
side - or one type of node - is
harder to acquire than the other.
In a “demand-side marketplace,”
the demand side (buyers) are
harder to acquire. In a
“supply-side marketplace,” the
sellers are harder.
Look for these various
asymmetries in a marketplace and
prioritize which types of demand
or supply will be the best to attract
first, second, and third. Then focus
on developing tactics to crack the
highest-value target first.
Read more about
network asymmetry 23
24. Homogeneous vs
Heterogeneous
Networks
Homogeneous networks are networks where all the nodes have the same function in the
network. One user is interchangeable with the next in the basic function they perform. In a
landline telephone network, for example, each node (telephone) performs basically the same
function as any other.
Heterogeneous networks are networks where there are two or more classes of nodes categorized
by both function and utility. Buyer nodes on eBay, for example, are on the network for
fundamentally different reasons from seller nodes.
Read more about Homogeneous
vs. Heterogeneous Networks
24
25. Asymptotic
Network Effects
Asymptotic network effects are
network effects with diminishing
returns.
Recall the basic definition of
network effects: as usage of a
product grows, its value to each
user also grows. In some cases,
however, network effects can start
to weaken after certain point in the
growth of the network.
Growth in an asymptotic network,
after a certain size, no longer
benefits the existing users. Examples
include Lyft/Uber and most data
network effects.
Read more about Asymptotic
Network Effects
25
26. Same-side network effects are direct network effects that occur on the same side of a multi-sided
(2-sided or N-sided) network. A platform like Microsoft’s OS, for instance, has a same-side
network effect because Microsoft users directly benefit from an increase in other same-side users
(on the demand side of the platform) since they can interchange Word, Excel, and other files with
a greater number of people. This makes both the platform itself and applications developed on
the platform more valuable for users.
Read more about Same-Side
Network Effects
Same-Side
Network Effects
26
27. Cross-Side
Network Effects
Cross-side network effects are
direct network effects that arise
from complementary goods or
services in a network with
more than one side. As
opposed to indirect network
effects, cross-side network
effects refers specifically to the
direct increase in value to users
on one side of a network by the
addition of users to another
side. More supply is better for
the demand. More demand is
better for the Supply.
Read more about cross-side network
effects 27
28. Indirect network effects occur when the value of a network increases as a result of one type of
node benefitting another type of node directly, but not directly benefiting the other nodes of its
same type.
Same-side nodes indirectly benefit each other because they create an increased incentive for
complementary users on the other side of the network to use the network, which in turn benefits
all the nodes on the same side.
Read more about Indirect
Network Effects
Indirect
Network Effects
28
29. Negative
Network Effects
In some situations, more network usage
or greater network size can actually
decrease the value of the network,
leading to negative network effects.
Negative network effects can happen in
two ways.
First, network congestion, where the
network becomes less valuable as a
result of increased usage-- as with traffic
in a road network.
Second, network pollution, where the
network grows too large and is polluted
with unwanted content -- like your
grandmother commenting on your party
photos on Facebook.
Read more about negative
network effects 29
31. “Multiplayer mode” and “single-player mode” are terms that came from the gaming industry, but are
useful for discussing network effects.
With single-player mode products, you get the full value of the product no matter who else is using
it. For example, filing taxes via TurboTax. With multiplayer mode products, some of the value of
using a product (and often the majority of it) comes from other users. A multi-player product lets you
feel and benefit from the activity of other users.
Products can have both single-player and multiplayer value. Watching YouTube videos is a
single-player experience. YouTube, with view count and comments, is also a multiplayer experience.
Read more about Multiplayer vs.
Single-Player Mode
Multiplayer vs
Single-Player
Mode
31
32. Switching costs refer to the costs in time, effort, or money that arise when you switch
from using one product to another incompatible product. When switching costs are high,
it tends to create customer lock-in because the customer has more of an incentive to stick
with the same supplier throughout their life cycle. Any product that has a lot of
defensibility will have high switching costs.
Read more about Switching Costs
Switching
Costs
32
33. Chicken or
Egg Problem
(Cold-Start Problem)
When you first launch a two sided network like
a marketplace or a platform, there is often no
value to one side of the network until the other
side is there too. So which comes first?
There are at least 19 tactics to help solve the
chicken or the egg problem.
Several of them involve creating a single-player
mode product where one side (either the supply
side or the demand side, depending on the type
of marketplace) can derive value from the
software without a network in place.
Others involve attracting one side of the
marketplace with compensation, such as cash or
leads.
Read more about the Chicken or Egg Problem
33
34. Multi-tenanting occurs when there are low costs or no costs to simultaneously
participating in competing networks at the same time. When the two sides of a
marketplace switch between services to get to the other side of the marketplace at no cost,
that’s multi-tenanting. For example, both riders and passengers frequently switch
between Uber and Lyft to find rides/passengers.Read more about Multi-Tenanting
Multi-
Tenanting
34
35. Disintermediation
Disintermediation is a vulnerability that mostly
applies to Marketplaces and Market Networks. It
happens when, after initially connecting through a
marketplace or market network product, users take
future transactions off the product and transact
directly, without paying a fee to the marketplace.
For example, you might hire someone to build IKEA
furniture using Taskrabbit, and then exchange
numbers so that you can hire them for future jobs
directly.
This is a significant problem for marketplaces and
market networks because repeat purchase is critical
to most transactional networks.
To help prevent disintermediation, you can provide
tools, reputation, insurance, compliance, leads and
other incentives.
Read more about Disintermediation
35
36. Retention is about how often your users return to use your product. This can make a big
difference in how powerful the network effects of a product are.
Recall that network effects happen when increased usage of a network leads to greater value.
Usage can increase in one of two ways: either new users join the network, or existing users
increase their usage.
Any drop off in usage from existing users will weigh against the growth of the network from new
users. That’s why retention is so important for building network effects.
Read more about Retention
Retention
36
38. Geometric Growth
vs. Linear Growth
Businesses with neither viral effects
nor network effects tend to produce
linear, straight-line growth. Linear
growth can produce a business, but
not the kind of high impact, exciting
growth we’re all looking for.
We all want the green-line growth
curve, but it is not a network effect.
It’s a growth curve.
Founders should push themselves
and their teams to reach geometric
growth. Network effect businesses,
once they hit the tipping point,
typically show this type of geometric
growth.
Read more about Geometric
vs. Linear Growth
38
39. Viral effects are different than network effects, but many people confuse the two because they are
both positive feedback loops, and because they were experienced together in famous companies
like Facebook, Twitter, and WhatsApp over the last 15 years.
Viral effects are about growth -- when existing users bring you more new users for free.
Network effects are about defensibility: a product gets more valuable when more people use it. A
product or service with viral effects has a “viral coefficient”, which is the number of new users
that join as a result of each user.
Read more about viral
effects & virality
Viral Effects
& Virality
39
New Users
New Users
40. 40
“Platform
Business Model”
This is a recent term that is commonly used to
talk about ALL companies with network effects.
In our opinion, it’s too generic and conflates too
many concepts together.
We think that one network effect is a “2-sided
platform network effect.” We prefer to break
out the 13 different network effects because we
think it produces more a precise and revealing
analysis.
To raise money today, it’s popular to say “make
your product a platform.” But we think this
refers to a specific type of approach where other
independent companies are building their own
products on your product.
Read more about the platform vs. network effect
business model
Not all network
effects companies are
platforms - platform
nfx are just one of 13
network effect types
41. Reinforcement
An important thing to know about
network effects is that once you have one
going, it’s much easier to build all the
other defensibilities on top of it,
including other network effects.
This “reinforcement effect” is often
underappreciated by Founders,
especially when they’re preoccupied with
growth.
Continually looking for and launching
new defensibilities is important because
they reinforce each other. The more you
have going the better, as long as you
don’t lose operational focus in the
process.
Read more about Reinforcement
41
42. Scale Effects
Scale effects are easy to confuse
with network effects because
they both become stronger in
relation to the number of users.
Network effects cause products
to become more valuable to users
as the network grows, increasing
defensibility by increasing
product value.
Scale effects, on the other hand,
lead to lower per-unit production
costs as the fixed costs of
production are spread out among
a greater number of units —
meaning a higher profit margin
which can increase defensibility
against competitors with less
favorable margins.
Read more about Scale Effects
42
43. 37
Brand defensibility is different from network effects. Like scale, the strength of your brand is correlated
with the growth and usage of your product, so it’s easy to confuse brand with network effects. However,
they work very differently.
Brand arises when people know who you are and what you do. A well-established brand identity comes
with psychological switching costs. People are less likely to switch to an unknown or lesser-known brand
from yours because psychologically they will default toward what’s familiar.Read more about Brand
Brand
43
44. 37
Embedding is an effective defensibility strategy that involves integrating your product directly
into a customer’s operations so the customer can’t rip you out and replace you with a competitor
without incurring significant cost in terms of time, energy, or both.
Embedding can work with network effects to make your business more defensible, but they are
separate concepts. Business models based on embedding include Oracle and WorkDay.Read more about Embedding
Embedding
44
45. NFX essays bring to light what most never see
about network effects, growth, and more
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