Shownotes Transcript
with @jasonrosenthal) @skominers) @meigga) @rhhackett)
Welcome to web3 with a16z), I’m Robert Hackett and today, we discuss pricing strategy for startups — from traditional businesses to web2 to web3.
Topics we cover include:
- unit economics
- understanding consumer psychology
- using onchain data to inform pricing decisions
- Common mistakes and how to avoid them
- How to navigate a pricing pivot
- And lessons from real world pricing case studies, including Tesla, Nvidia, and others
Our experts include a16z crypto)'s Maggie Hsu, head of our go-to-market team; research partner and Harvard Business School professor of economics Scott Kominers; and head of our CSX startup accelerator Jason Rosenthal, who is a tech veteran having spent the last 25 years at various internet companies — the three combine all their different expertise around the theme of this episode.
Resources for references in this episode:
- When is decentralizing on a blockchain valuable?) by Marco Reuter (a16z crypto, January 2023)
- The Value of Decentralization Using the Blockchain: An Economic Analysis) by Marco Reuter (a16z crypto, January 2023)
- "The single most important decision in evaluating a business is pricing power)..." — Warren Buffett (Bloomberg, February 2011)
- Network Effects, Moats, & the Business of Web3 (Episode 25)) (web3 with a16z podcast, May 2023)
- 6 questions every founder should ask about pricing) by Jason Rosenthal and Maggie Hsu (a16z crypto, May 2023)
- Zipcar: Refining the business model) by Myra M. Hart, Michael J. Roberts and Julia Stevens (Harvard Business School Case Collection, May 2005)
- Ning CEO: Building a Better Website) by Adam Lashinsky (Fortune, September 2010)
- On the best business advice Disney CEO Bob Iger ever received) by Jeff Haden (Inc., December 2020)
- Predictably Irrational: The Hidden Forces that Shape Our Decisions) by Dan Ariely (HarperCollins, February 2008)
- On the Bored Ape Kennel Club donating secondary sale proceeds to charity) (Twitter, June 2021)
- Chief's Silicon Valley Stardom Quickly Clashed at J.C. Penney) by Stephanie Clifford (New York Times, April 2013)
- Tesla turns up heat on rivals with global price cuts) by (Reuters, January 2023)
As a reminder none of the following should be taken as tax, business, legal, or investment advice. See a16zcrypto.com/disclosures for more important information, including a link to a list of our investments.