All about Network Effects

Network effects. It’s one of the most important concepts for business in general and especially for tech businesses, as it’s the key dynamic behind many successful software-based companies. Understanding network effects not only helps build better products, but it helps build moats and protect software companies against competitors’ eating away at their margins.

Yet what IS a network effect? How do we untangle the nuances of … [ Read more ]

16 Definitions on the Economics of VC

Scott Kupor of Andreessen Horowitz attempts to clear some of the opacity of how the VC industry works, by defining some basic terms, beginning with a bit of history.

When Is a “Mark” Not a Mark? When It’s a Venture Capital Mark.

The WSJ wrote a story on venture capital returns that claims “Andreessen Horowitz’s Returns Trail Venture-Capital Elite.” Andreessen Horowitz’s Scott Kupor offers a rebuttal by explaining how arcane and obtuse venture capital valuations can be.