Network Effects in Marketplace, Communities and Social Platforms
Version One Ventures
JULY 27, 2015
These days, we’re hyper-focused on marketplaces, communities and social platforms. We love these platforms for many reasons, but the primary one is the power of their network effects and how they create a high degree of defensibility for startups. What are network effects? Network effects” is a frequently used term and it is sometimes confused with having a large customer base. Direct Network Effects. Indirect network effects.