70% of Value in Tech is Driven by Network Effects Roger on 27/10/2019 The Big 5 — Apple, Google, Microsoft, Facebook and Amazon — are hitting all time high valuations. Airbnb is worth more than Hilton in the private market. Uber is worth more than GM. Spotify and Dropbox IPOed in 2018, with Slack and Didi Chuxing on an IPO track. It’s fitting they should all be mentioned in the same breath, because other than Amazon, their business DNA is amazingly similar. They are all network effect businesses. And it turns out that most of the outsized returns of companies since 1994 have used network effects. Related Category: Notes Tag: networkeffects Post navigation Previous: Previous post: The Network Effects Manual: 13 Different Network Effects (and counting)Next: Next post: Defining the innovation process