The Network Effect
A significant portion of the value a venture capitalist brings to a portfolio company is his other contacts, including customers, investors, strategic partners, executive talent and the press. Each of these elements of "Rolodex Power" is leveraged across the DFJ Network for the benefit of portfolio companies. With each investment, and each partnership, and each customer, the Network expands its collective power through the "network effect."
As intelligence accumulates, it becomes accessible in real-time through DFJ's proprietary extranet, "vCIA™," which allows Network partners to benefit from the "collective intelligence" of the Network, in turn providing portfolio companies with introductions and competitive advantages that would not otherwise exist. Without requiring work by general partners or staff, vCIA™ (via software patented by a Network portfolio company - Tacit Knowledge Systems) automatically discovers the full "Rolodex" of the DFJ Network by identifying those people with the relevant experience, contacts and expertise. The result is a capability to solve problems, structure deals and play through scenarios as a distributed venture team. The venture capital industry, like many others, relies heavily on intellectual and social capital to stay competitive.
The DFJ Network increases its power as the "collective intelligence" of its growing portfolio of Network Partners, technology companies, investors and corporate allies is networked. Additionally, vCIA™ allows Network Partners to share service provider ratings, job openings and personal contacts.
