It’s an ever-evolving effort, and we’re continually making changes and updates. Moreover, very few companies want to share their valuable playbooks around nfx, so most founders don’t even recognize different types of nfx when they see them, much less understand their complex inner workings.īelow we present our network effects map and accompanying manual. Many people talk about them, but few understand the hidden complexities: what they really are, how they work, the many different types, and how to build and maintain them. Still, because very little has been written about nfx, misconceptions abound. Even though they are only a minority of companies, companies with nfx end up creating the lion’s share of the value.įor Founders looking to build truly impactful companies, few areas of expertise are more valuable. Our three-year study, which we released recently, shows that nfx are responsible for 70% of the value created by tech companies since the Internet became a thing in 1994. Companies with the strongest types of nfx built into their core business model tend to win, and win big. These are some of the most impactful and significant companies in the world.Įach one is very different in a lot of ways, but there’s a single property that defines them all and lies behind their success.Īs we’ve said, nfx are the #1 way to create defensibility in the digital world.
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March 2023
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