Groupon

How did Groupon make money? What was so smart?

Assuming we are talking about the original business model, not Groupon Goods, the short lived Groupon Now and whatever else they have been attempting to do with Breadcrumb etc, it’s more complicated than what people think, but it’s also genius. There’s a lot of learnings for you. The single best one though is, “if you aren’t embarrassed by what you …

Network effects

Getting Network Effects in Your Startup: an a16z Podcast

Network effects! Everyone has heard they are useful, but how much do you really know about them and how do you get the ‘flywheel’ spinning? In a16z Podcast, partners Anu Hariharan and Jeff Jordan (who invest in marketplaces, consumer, and more) share with Sonal Chokshi their observations, insights, and experiences. One of the biggest misconceptions around network effects (which are one …

Parable of defensible software network by Fred Wilson

Parable of defensible software network by Fred Wilson

Fred Wilson posted a parable on his blog in 2014 that is instructive in explaining that software alone is a commodity and in order to create defensibility you need to embed a network. Fundamentally, there is nothing stopping anyone over time from copying a feature set, or adding incremental benefits (e.g. making it better, cheaper, and faster). If you can create a …