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  1. Viral success without network effects or some other defensibility is often flashy but short-lived. The list of viral companies that failed to produce valuable companies is long. Going viral didn't make JibJab, PhotoBooth, FormSpring, BuzzFeed, or the Sequoia-backed QuizUp (which raised $27M and died) nearly as defensible or valuable.
  2. Direct Network Effects. The 1st broad category of nfx, shown in blue on the Network Effects Map, are direct network effects. The strongest, simplest network effects are direct: increased usage of a product leads to a direct increase in the value of that product to its users. The direct network effect was the first ever to be noticed, back in 1908.
  3. 1. The Viral Network Wedge. The "viral network wedge" is a market full of tightly networked, high affinity individuals who are very likely to share new products with one another. The classic example in the consumer space is the college campus. Students, while they don't have much money, are willing to try new things.
  4. peak.capital

    For a great overview, check out the NFX manual that explains 13 different types of network effects.) **A note on marketplace virality** As VersionOne critically points out, "not all network effect products are viral, and not all viral products have network effects." Products such as games or news outlets can be highly viral without network ...
  5. NFX Masterclass is the first video streaming platform built exclusively for early-stage founders. 100% free. It is built by NFX, the world's largest dedicated pre-seed and seed venture firm and the creator of popular free founder products including BriefLink, a fundraising deck service, and Signal, the founder-investor network.
  6. stories.platformdesigntoolkit.com

    Essentially: network effects are about retention, monopoly, hacks, and defensibility while viral growth is about the speed of adoption;; network effects become more valuable as more people use it while viral growth may produce a cost-benefit through economies of scale but not necessarily making the product or service more valuable to the people subscribing to it;
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