Startup & VC Jargon · Vice President level

"Network effects"

"Network effects" describes the dynamic where a product or service becomes more valuable as more people use it.

Say this instead: value from more users

How "Network effects" shows up at work

One of the few pieces of jargon that actually describes a real and powerful phenomenon, which is why investors love hearing it. The trouble is that every startup with more than two users has been known to claim network effects, whether or not the math holds.

Buzzword

The platform benefits from strong network effects as the user base scales.

Plain English

The platform gets more useful as more people use it, which makes growth self-reinforcing.

Corporate Rank: Vice President · Category: Startup & VC Jargon

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