
Network Effects That Don’t Look Like Network Effects - imartin2k
https://a16z.com/2019/07/29/hidden-networks-effects/
======
tempsy
Wow, this is a pretty poor article. Mixing up intentional (throttling) vs
unintentional (unfinished) decisions and describing these as "hidden networks"
which is supposed to be the intersection of "Seems like network effects" and
"Doesn't seem like network effects."

Is this a joke?

Telling that the biggest conclusion I came away with is that rich people are
mostly rich due to luck and circumstance.

------
Mathnerd314
The article doesn't really have enough examples or analysis to justify its
categorization of network effects. It deserves a more clickbaity title like "6
runaway startups you won't see coming".

~~~
ub
Yup, it just seems like some random unsubstantiated theory being touted by VCs
who want to show they're smart.

~~~
human20190310
It's impossible that everyone out there blogging actually knows what they're
talking about, and figuring out which ones do is getting to be a lot of work.

------
jamestimmins
Pretty sure the left side of the Venn diagram should say "Has network
effects", otherwise it doesn't make sense.

Although even then it's confusing.

~~~
tzakrajs
This is what happens when you outsource graphics to people without making sure
they understand what you are talking about.

------
rossdavidh
Interesting points, but they forgot to include one category: "We thought we
would have network effects, but it turned out we didn't". Which, you know, can
be really hard to distinguish from the others.

I am too cynical, I guess, but part of me was wondering while reading this,
"Is this a piece intended to convince investors that some not-ramping-as-fast-
as-we-thought startup is actually what they need to invest in?"

~~~
sm4rk0
I'm wondering "Is Lambda School one of those startups?"

~~~
austenallred
Well they haven’t invested in Lambda School, so it’s not like they have an
incentive to say we have a network effect we don’t have

------
mmanfrin
A claim that the prestige/name recognition of a school is a network effect is
just plain wrong. More than half these examples are not network effects. Don't
dilute the term in to uselessness by making its borders infinite.

------
sandGorgon
This article conflicts with A16Z earlier article on the "lack of data network
effects as moats"

[https://a16z.com/2019/05/09/data-network-effects-
moats/](https://a16z.com/2019/05/09/data-network-effects-moats/)

One of the cited examples of slow network effects is lending. Even if you draw
a line saying "it's acquisition, not data"...due to nature of underwriting and
acquisition in lending, there's no way around ignoring data there.

Which essentially means that this article is implicitly making the case for
data network effects.

~~~
tedsanders
Yeah a16z is probably not best viewed as a monolithic entity, but rather a
loose connection of people. They've contradicted themselves other times too.
For example, Ben Evans has said that autonomous taxis will likely lead to more
bland, commoditized cars, since fleets will buy cars like corporations buy PCs
[1]. Frank Chen has predicted the exact opposite, saying that autonomous taxis
will likely lead to a wider variety of cars, because it will enable weird
designs to be shared across people to serve the long tail of needs [2]. Kinda
hard to trust their logic on what's true when they have people arguing both
sides, as in the example you highlight regarding data network effects. I guess
we each have to come to our own conclusions and then let reality be the judge.

[1] [https://www.ben-evans.com/benedictevans/2015/7/27/ways-to-
th...](https://www.ben-evans.com/benedictevans/2015/7/27/ways-to-think-about-
cars)

[2] [https://a16z.com/2018/02/03/autonomy-ecosystem-frank-chen-
su...](https://a16z.com/2018/02/03/autonomy-ecosystem-frank-chen-summit/)

~~~
sandGorgon
Sure. Wasn't pointing out an organisational contradiction. I was pointing out
that specific fact, since the previous article was much debated here on HN.

------
evrydayhustling
This is a great article but that ven diagram is really distractingly off.
"Seems like" and "doesn't seem like" really shouldn't have an intersection. If
you must use a ven diagram for this juxtaposition, make it "things that have
network effects" and "things that don't seem to have network effects". (Still
want that ven diagram?)

------
codeflo
That attempt at a Venn diagram makes my head hurt.

~~~
tehlike
/r/dataisugly is a pretty good resource for similar charts.

------
EGreg
A very insightful article by AH!

The only thing is that you can hit network effects after someone else and
still win. Like bacteria cultures in a pond. By the time you lock horns you’re
both worth a lot.

PS: @dang please fix HN to not zoom during doubleclick on iOS 12+! It’s one
meta tag, but without it we iOS users can’t select and edit text!!

~~~
happytoexplain
Double-tap-to-zoom is standard web behavior. I (and I think most people who
are familiar with touch behavior) would be surprised if it wasn't there. Hold-
to-select is the more standard method of text selection.

~~~
EGreg
On iOS, tap-and-hold brings up a black menu where you can click Select. That
works but is far longer than just a double-tap.

All HN has to do is put one meta-tag <meta name="viewport"
content="width=device-width, initial-scale=1, maximum-scale=1, user-
scalable=0">

