Li Jin @ljin18 Consumer investing @a16z. Beijing born + Midwest bred. MBA dropout. Alum: Product @shopkick, stats & English lit @Harvard. Lifelong artist. Loves tech & corgis. Mar. 30, 2019 1 min read

We often have founders telling us that their business has network effects, but few have quantitative ways to demonstrate that. Here's a few metrics I often use when assessing startups' network effects:
- cohort curves: is activity increasing as the network grows?
- match rate

(often also called success or utilization rate)
- power user curves to see how engagement is evolving over time! See our post:  https://a16z.com/2018/08/06/power-user-curve-l30-l7/ 

Watch our hallway discussion on metrics to measure network effects here with @dcoolican and @withfries2:  https://www.youtube.com/watch?v=ludavV3ExRE 
#a16zconvos

And check out our other discussions on network effects:
What even IS a network effect? Debunking Metcalfe's Law and debating whether brand is a type of network effect (I think yes!):  https://www.youtube.com/watch?v=nD_fz1ly-kA 

Rapid fire round - which companies/categories have stronger or weaker network effects? Food delivery, social networking, etc.  https://youtu.be/3BO050o2XfY 

And ask us anything about network effects and we'll do our best to answer!


You can follow @ljin18.



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