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it's about network effects

So I figured i'd write more often... i've been a bit lazy. Only writing long posts when I had something to say. So I'm trying bite-sized thoughts.

Thought for the day: I remember being at a talk (VC investors/entrepreneurs) and somebody saying that it's very important these days to invest in stuff that is being given away free. This is very disruptive. And I was thinking "Why?". Why does free give you an advantage.

And my conclusion is, it's not about free, it's about network effects and speed of growth. See, network effects are fantastic, because you can then protect yourself from competition and make a buck or two. So if the space you are in moves really really fast, then whatever gives you that superfast acceleration to start achieving network effects is worth it.

Giving stuff away for free is one way to get there.

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    Rodrigo Madanes

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