Perspective, Pontification and Propoganda about Entrepreneurship and Venture Capital, brought to you by David Hornik of August Capital.

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Brian Dear

Totally agree. I'm glad to see a VC appreciates that "viral" and "network effect" are real phenomena and have real implications for businesses. The trick is, I suspect, to build a business model whereby pieces of the puzzle are highly viral and exploit the network effect, but once customers are on board, they find additional value beyond the freebies that got them there in the first place.

John Woolverton


I used both "viral" and "network effect" in my plan, cause we leverage users as a way to spread the service, and because everyone benefits as more users join. Maybe I can get away with this cause we're playing in the Instant Messaging space (where the basic service is viral), or maybe I should come up with a new name for it. Any suggestions?

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