Mostly metrics
Run the Numbers
E25: A Deep Dive on Marketplaces and Network Effects with James Currier of NFX
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E25: A Deep Dive on Marketplaces and Network Effects with James Currier of NFX

In this episode James Currier the founder and General Partner at venture capitalist firm NFX, guides CJ on the inner workings of marketplace businesses and network effects. He shares insights on the importance of finding a 'white hot center' when starting a marketplace, strategic ways to tackle the trademark chicken and egg problem, and the significance of retention as a metric. Tropic is the next-generation Procurement Platform that’s helping modern CFOs take control of their budgets and bottom line, head to www.tropicapp.io/metrics

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SPONSORS:

Tropic is the next-generation Procurement Platform that’s helping modern CFOs take control of their budgets and bottom line. By combining approval workflows, supplier management, and pricing benchmarks all in one place, Tropic makes savings opportunities easy to find and act on. 🌴 Visit www.tropicapp.io/metrics to learn how.

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X / TWITTER:

@jamescurrier (James)

@cjgustafson222 (CJ)

@TurpentineMedia (Turpentine)

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LINKS:

https://signal.nfx.com/

NFX Content: https://www.nfx.com/library

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TIMESTAMPS:

(00:00) Intro

(00:42) Discussing the Chicken or the Egg Problem

(02:00)The Importance of Finding a Niche in Marketplaces

(09:20) Understanding the Economics of Marketplaces

(16:00) Sponsor: Tropic

(20:50) Discussion on Marketplace, Platform, and Aggregator Classifications

(25:25) Understanding Aggregation Theory and Network Effects

(26:09) Defining Platforms

(27:04) Exploring Substack as a Platform

(28:15) The Importance of Network Effects

(28:59) Discussing the App Store Fee Controversy

(31:30) Understanding Liquidity Ratio in Business

(32:50) Navigating Platform Risk in Startups

(35:35) The LTV to CAC Trap in Business

(38:40) Retention

(43:30) The Qualities of a Great CFO According to James Currier

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Mostly metrics
Run the Numbers
Run the Numbers is a twice-weekly podcast about financial metrics and business models, designed for ambitious people operating tech startups. It's a collection of things host CJ Gustafson (CFO at Partstech and writer of Mostly Metrics) has learned and thought about in the trenches as a tech CFO. This show is meant to serve as a playbook of sorts for the stuff CJ wishes he knew earlier in his career, both from experience and from copying people smarter than himself. Topics frequently touch upon Startup SaaS Metrics, Annual Budgeting, Financial Forecasting, Headcount, Equity, Dilution, and Fundraising – and how all of these drive business performance and growth.