NFX ran a study on all unicorn businesses (e.g. worth $1BB or more) since the Internet was widely available in 1994. 336 companies met this criteria.
Of those, 35% of those companies had network effects (NFX) at their core. However, they were more valuable than companies without network effects, so they added up to 68% of the total value.
Are NFX the core driver of growth to startups we're overlooking?
On the one hand, the study is skewed towards examining only unicorns. So this data doesn't even consider centaurs (e.g. $100MM+ valuations). On the other hand, there is something to be said about examining what made the best, the best.
Are there other factors that drive major value to a startup? Your thoughts?
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