The Medium Rules: Long-Term Trends in Media and Technology
Network Effects, with Tim Gunderson of Carta
Sometimes the biggest startup ideas are sitting right under our noses until somebody decides to just pick up and build the company. This is the case with Carta, which took an obvious pain point, the management of private company capitalization tables, and built a unicorn business. On the final episode of The Medium Rules for 2019, I sat down with Tim Gunderson, VP Products at Carta, to discuss how Carta took what might have seemed like a straightforward problem, built a simple cloud-based solution, and grew a company to a valuation of $1.7 billion (and counting!). In addition to great tech, the ubiquity of the cloud, a great founder and a great team, the magic insight here lies to a great extent in network effects: startups (in many cases with a not-so-gentle nudge from startup counsel!) go on the platform to reduce friction associated with cap table management, fund investors start to see the benefit of a high-level view of all of their portfolio investments and also urge companies to be on Carta, and finally fund LP’s are also pulled into the network to be able to easily view fund performance from the bottom up. We hope you tune in, watch and listen to this very lively season-ending episode.