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 least $1 billion as of 05/01/17 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.
This material is provided for informational purposes, and it is not, and may not be relied on in any manner as, legal, tax or investment advice or as an offer to sell or a solicitation of an offer to buy an interest in any fund or investment vehicle managed by Battery Ventures or any other Battery entity.
The information and data are as of the publication date unless otherwise noted.
Content obtained from third-party sources, although believed to be reliable, has not been independently verified as to its accuracy or completeness and cannot be guaranteed. Battery Ventures has no obligation to update, modify or amend the content of this post nor notify its readers in the event that any information, opinion, projection, forecast or estimate included, changes or subsequently becomes inaccurate.
The information above may contain projections or other forward-looking statements regarding future events or expectations. Predictions, opinions and other information discussed in this video are subject to change continually and without notice of any kind and may no longer be true after the date indicated. Battery Ventures assumes no duty to and does not undertake to update forward-looking statements.
*Denotes a Battery portfolio company. For a full list of all Battery investments, please click here.
