If network effects are one of the most important concepts for software-based businesses, then that may be especially true of data network effects — a network effect that results from data. Particularly given the prevalence of machine learning and deep learning in startups today.
But simply having a huge
corpus of data does not a network effect make! So how can startups ensure they
don’t get a lot of data exhaust but get insight out of and add value to that
data and the network? How can they make sure that the (arguably inevitable) data
aspect of their business isn’t just a sideshow or accident? How
should founders strike the balance between not overbuilding/ building a data team
vs. having enough data for those data scientists to work with in the first place?
And finally, what are the ethical considerations of all this?
The CFI general partners most focused on bio and fintech — Vijay Pande and Alex Rampell — join this episode of the CFI Podcast to share their observations and advice on all things data network effects, both as it touches their domains and beyond.
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Alex Rampell is a General Partner at Andreessen Horowitz where he focuses on financial services.
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Vijay Pande is the founding general partner of the Bio + Health team at Andreessen Horowitz, focused on the cross-section of biology and computer science.
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Sonal Chokshi is Editor in Chief of Crypto at Andreessen Horowitz.
More About This Podcast
The CFI Podcast discusses the most important ideas within technology with the people building it. Each episode aims to put listeners ahead of the curve, covering topics like AI, energy, genomics, space, and more.