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When Your Factory is Your Product
Enovix makes next-generation batteries. Their current revenue is tiny compared to their valuation and their operating losses. At this point in their life cycle, building performant manufacturing, and getting designed into growing products is their lifeline.
Network Effects Don’t Always Look Like Social Media
In ICE’s world (likely not the ICE you're thinking of), more participants mean better outcomes for everyone already inside the network. That feedback loop makes the platform harder to compete with each year. Entrepreneurs can apply the same thinking well outside finance.
A Category Leader Spending Like a Drunken Sailor
Procore built the operating system for construction, and that position has given them a strong competitive moat. Switching costs are high, network effects are stronger than they look, and the product is deeply embedded in the work their customer's do. The problem is they continue to spend money like a drunken venture capitalist.
