Nam Nguyen


5 Tenants of a Monster Platform Business

The most valuable businesses have been platform businesses and will continue to be platform businesses. Google, Facebook, Uber, Amazon are all platforms.

Not all platforms are created the same. How do we identify a great platform business?

  1. Data rich. Collects tons of data.
  2. Self mutating. Uses the data and gets better over time. Think data science and machine learning. The ease of use, conversion rates, stickiness increases over time.
  3. Network effect. One user added enhances the experience for all other users.
  4. One to many. Many one to many relationships not many one to one relationships. Snapchat is still 1:1. Instagram is one to many. Apple Appstore one to many (devs to consumer).
  5. Scalability. Adding more users linearly increases revenue/margin while adding little to no cost.

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