The Battery Ventures Network Effect Index—which includes 36 current or previously publicly traded companies, each valued at $1 billion or more—highlights companies that exhibit profound “network effects”, meaning the services become more valuable the more people use them. Below is a chart showing how the companies in the index have performed against various market benchmarks, and also how companies in three main groups—social networks, transactional marketplaces, and ad-driven marketplaces—performed. To read the inaugural blog post introducing the index, click here. This index will be updated monthly.
The Battery Network Effect Index includes current and formerly publicly traded Internet companies with a market value of at last $1 billion as of 12/31/16 whose business model can, in whole or in part, be attributed to network effects. The data for the index was gathered from research firm CapitalIQ and is publicly available.
Below find the 32 current public companies in the index (four were formerly public but were acquired) along with relevant valuation and operational metrics, grouped into three main categories: Ad-driven marketplace companies; social networks; and transactional marketplaces.
*Denotes a Battery investment. For a full list of all investments and exits, please click here.