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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:/
by sandGorgon 7y ago
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 7y agoYeah 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-think-about-cars https://www.ben-evans.com/benedictevans/2015/7/27/ways-to-th... [2] https://a16z.com/2018/02/03/autonomy-ecosystem-frank-chen-summit/ https://a16z.com/2018/02/03/autonomy-ecosystem-frank-chen-su...
- sandGorgon 7y agoSure. Wasn't pointing out an organisational contradiction. I was pointing out that specific fact, since the previous article was much debated here on HN.