The Minutes of Bill Gurley on network effects https://minutesof.com/bill-gurley/on/network-effects/ Everything Bill Gurley has said on network effects: 11 verbatim quotes between April 2013 and August 2026, each with a timestamp and a link to the… en Sun, 30 Aug 2026 16:21:59 +0000 Gurley told OpenTable CFO they would reach 99% market share, not 17%, due to network effects understanding. https://minutesof.com/q/1eb4b408-38eb-4bf1-8e61-01bdef163820/ https://minutesof.com/q/1eb4b408-38eb-4bf1-8e61-01bdef163820/ “And he said, oh, no one gets more than 17% market share, all the businesses I've worked with. Because I believed in network effects, I was like, we're gonna get 99.” — BlackNova Productions Tue, 04 Aug 2026 07:34:54 +0000 network effects Gurley learned from Bill Miller that network effects justify Amazon growing at unreasonable rates for extended https://minutesof.com/q/1dad726e-c24d-496f-b737-c89aaf4ad012/ https://minutesof.com/q/1dad726e-c24d-496f-b737-c89aaf4ad012/ “value just means that the asset is underpriced relative to what you think it will be worth in the future.” — The Knowledge Project Podcast Tue, 09 Jun 2026 10:00:30 +0000 network effects Gurley says OpenTable had the most intellectual appeal because Benchmark invested at three restaurants with a https://minutesof.com/q/79c471c3-6a9b-4308-8e84-6ec9e0315fd8/ https://minutesof.com/q/79c471c3-6a9b-4308-8e84-6ec9e0315fd8/ “The one that had kind of the most intellectual appeal was probably OpenTable because we invested when there were three restaurants on the network and had a theory that a network effect could take place where it could tip towards winter, take most.” — Forbes Tue, 21 Apr 2026 23:11:11 +0000 network effects Gurley explains OpenTable unlocked parametric search for restaurants that was previously impossible without ca https://minutesof.com/q/513c9532-941f-4003-bc8b-99ed9fd817b3/ https://minutesof.com/q/513c9532-941f-4003-bc8b-99ed9fd817b3/ “Before OpenTable, you could not do that. You'd have to call each one of them, and so it unlocked a consumer value proposition that didn't exist.” — School of Hard Knocks Podcast Thu, 26 Mar 2026 21:34:25 +0000 network effects Gurley cites CrowdStrike as example of network effects in enterprise security through shared threat intelligen https://minutesof.com/q/961e648a-662c-46eb-8613-54c7bf600ac8/ https://minutesof.com/q/961e648a-662c-46eb-8613-54c7bf600ac8/ “But they posted a memo four years ago titled the CrowdStrike Security Cloud Network Effect.” — Invest Like the Best Tue, 23 Apr 2024 08:00:00 +0000 network effects Gurley explains CrowdStrike's network effect where threat-sharing makes the largest security network most valu https://minutesof.com/q/d4a70966-50f8-49df-8b77-5537c0a1ec75/ https://minutesof.com/q/d4a70966-50f8-49df-8b77-5537c0a1ec75/ “the way that it worked for them and the way that the marginal customer ends up with more utility is if the threats are shared across a network, then if you belong to the biggest network, then you get the shared learning of everyone in that network, which lowers your threat exposure.” — Invest Like the Best Tue, 23 Apr 2024 08:00:00 +0000 network effects Gurley recalls OpenTable's CFO wanted to quit because his model capped market share at 17 percent. https://minutesof.com/q/0b2cf90f-177f-42e1-89ce-6875dffa6e4f/ https://minutesof.com/q/0b2cf90f-177f-42e1-89ce-6875dffa6e4f/ “And one day I showed up early for a board meeting and and the CFO comes to me and he says, Bill, I'm I'm gonna quit.” — Tim Ferriss Thu, 26 Jan 2023 19:45:00 +0000 network effects Gurley would bet on a 500 million user communication platform adding avatars over a perfect avatar system with https://minutesof.com/q/7521fcd3-90e3-4e74-9e69-15a5796b5ca9/ https://minutesof.com/q/7521fcd3-90e3-4e74-9e69-15a5796b5ca9/ “if I had to place a bet on whether someone that had 500,000,000 users on a digital place platform where people are communicating and that they might add avatars or some digital thing that makes it more immersive versus someone that built the perfect digital three d avatar immersive system but doesn't have the users yet?” — Invest Like the Best Tue, 07 Dec 2021 09:00:00 +0000 network effects Gurley argues network effects decay as platforms scale, citing LinkedIn as an example of diminishing marginal https://minutesof.com/q/0a37b963-304d-4359-a925-0b2554335b04/ https://minutesof.com/q/0a37b963-304d-4359-a925-0b2554335b04/ “Like what's the value of an incremental member joining LinkedIn? It's probably less than what the value of the 10,000 person that joined LinkedIn.” — Invest Like the Best Tue, 02 Jul 2019 09:30:00 +0000 network effects Gurley argues Apple and Google don't know how to build UGC communities because it requires specific expertise. https://minutesof.com/q/f071c0a2-70e5-4597-a726-4bdd0f651f08/ https://minutesof.com/q/f071c0a2-70e5-4597-a726-4bdd0f651f08/ “And it turns out the majority of people don't know how, including really large companies like Apple and Google because it's really hard and it requires a lot of hand holding and hand stitching and building in place a network effect where the atoms start to bounce into one another.” — TechCrunch Mon, 29 Apr 2013 15:27:35 +0000 network effects And it turns out the majority of people don't know how, including really large companies like Apple and Google https://minutesof.com/q/8935308d-6f2c-488f-b180-c89c9db67f49/ https://minutesof.com/q/8935308d-6f2c-488f-b180-c89c9db67f49/ “And it turns out the majority of people don't know how, including really large companies like Apple and Google” — TechCrunch Mon, 29 Apr 2013 15:27:35 +0000 network effects