Venture Fundable Businesses

  1. Embed Model: This business model is almost always in the enterprise software space. You build a sales team or figure out an effective Product Led Growth motion, sell into the Fortune 500 and lock them in. Once you are locked in, it’s very hard to rip your technology out. Some examples are SAP, Salesforce, Adobe or really any major Enterprise software company
  2. NetWork Effects: Usually platform driven. At a basic level, the more buyers you have, the more sellers you get. The more sellers you have, the more buyers you get. A virtually hard to break virtuous cycle once you get going. Some examples are Craigslist, EBay, Facebook, Google.
  3. Economies of Scale: Growing to a stage when you can use your mass size and volume for discounts and scale to outgrow. Amazon is to me the most obvious example here.
  4. Brand: Building a brand to distinguish yourself and be the main choice of your buyer. DTC brands like Warby Parker are recent examples. Older examples could be IBM.

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Marvin Liao

Marvin Liao

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Ever curious: Tsundoku, Reader, Aspiring Shokunin, World traveller, Investor & Tech/Media exec interested in almost everything! www.marvinliao.com