Latest Interviews

a16z Podcast | Getting Network Effects

Anu Hariharan, Jeff Jordan, Sonal Chokshi

The presentation defines genuine network effects as a metric of increasing user value and retention, distinguishing them from simple viral growth through case studies of Facebook, OpenTable, and Airbnb. It outlines specific bootstrapping strategies for marketplaces, including clustering tactics to achieve local density before scaling and methods like pre-population to avoid the "empty stadium" problem. Finally, the analysis examines how these structural advantages create defensible moats against competition, drive sustainable monetization, and influence resilience against external economic shocks.