Chris Dixon

Principles are our summary of their public statements.

• Identify Specialization Trends

  Strategy

  When a new technology becomes mainstream, older tools often shift from general-purpose use to specialized, industrial roles.

  1 more supporting quote is in the member records.

  Source Pcs Are Going To Be Like Trucks, 2013  (opens in a new tab)

• Consumer products must be intuitive

  Product

  Consumer products lack the luxury of face-to-face sales, so they must provide immediate value to every individual user to succeed.

  2 more supporting quotes are in the member records.

  Source Why Is Enterprise Tech So Far Behind Consumer Tech Because It Can Be, 2011  (opens in a new tab)

• Beware of High Take Rates

  Pricing

  Dominant platforms often extract excessive value from creators, making it difficult for the average participant to earn a living wage.

  Supporting quotes

  • “The take rate is the percentage of money flowing through the system taken by the network intermediary.”

  2 more supporting quotes are in the member records.

• Build with Lego Bricks

  Productivity

  Software developers should leverage composability by using existing open-source code as building blocks to avoid redundant work and accelerate innovation.

  Supporting quotes

  • “You don't have a hierarchical management structure that can be very efficient. The flip side, and why I think Linux won, is that open-source benefits from what's known as composability”

    “At some point, the network effects are so strong that even if you come up with something that's much better, it may just be a challenge.”

  1 more supporting quote is in the member records.

• Target Broken Systems First

  Strategy

  When introducing a new technology architecture, focus on industries where the current solutions are inefficient or 'broken' rather than fighting established network effects.

  Supporting quotes

  • “You don't have a hierarchical management structure that can be very efficient. The flip side, and why I think Linux won, is that open-source benefits from what's known as composability”

    “At some point, the network effects are so strong that even if you come up with something that's much better, it may just be a challenge.”

  1 more supporting quote is in the member records.

• Digital Assets Beyond JPEGs

  Product

  NFTs should be viewed as a better architecture for user ownership of digital items like game assets or legal deeds, rather than just speculative art.

  3 more supporting quotes are in the member records.

  Source Chris Dixon on Blockchains, AI, and the Future of the Internet (Ep. 240), 2018  (opens in a new tab)

• Leverage Bottom-Up Organization

  Strategy

  The most effective knowledge systems rely on decentralized contributions and reputation systems rather than top-down classification.

  Supporting quotes

  • “It turns out that imposing even minimal structure on information, especially as it is being created , goes a long way. This is what successful collective knowledge systems do.”

  1 more supporting quote is in the member records.

• Follow the user attention

  Mindset

  Assume that where users spend their time, effective monetization strategies will eventually emerge.

  2 more supporting quotes are in the member records.

  Source What If Online Business Model Innovation Is Slowing Down, 2009  (opens in a new tab)

• Embrace Operational Complexity

  Competition

  Mastering multiple disciplines like supply chain, marketing, and software creates a moat that is difficult for others to copy.

  2 more supporting quotes are in the member records.

  Source Full Stack Startups, 2014  (opens in a new tab)

• Assess Your Relative Bargaining Power

  Strategy

  A business's ability to capture revenue depends on how many alternatives its partners have; if you are one of many and they are the only one, your bargaining power is zero.

  Supporting quotes

  • “One of the primary reasons companies merge is to increase bargaining power with respect to buyers and suppliers.”

  2 more supporting quotes are in the member records.

• Prioritize ownership in digital design

  Strategy

  The next era of the internet focuses on democratizing ownership, allowing users to have a stake in the platforms they use.

  2 more supporting quotes are in the member records.

  Source Read Write Own, 2023  (opens in a new tab)

• Signal defensive intent

  Negotiation

  When forced to fight, signal that the aggression is purely responsive and will cease if the other party stops.

  2 more supporting quotes are in the member records.

  Source Facebooks Response To Yahoos Patent Lawsuit, 2012  (opens in a new tab)

• Incentivize data collection through benefits

  Product

  To collect private data ethically, founders must provide clear social, game-like, or personal health incentives that encourage users to opt-in.

  2 more supporting quotes are in the member records.

  Source Instrumenting The Offline World, 2010  (opens in a new tab)

• Identify Purchase Trigger Moments

  Customers

  Understand the exact moments and locations where customers are most likely to need or buy the product.

  2 more supporting quotes are in the member records.

  Source Understanding Your Market, 2009  (opens in a new tab)

• Design for Default Belief

  Product

  In VR, users believe what they see by default, so creators should focus on managing intensity rather than just trying to immerse the user.

  2 more supporting quotes are in the member records.

  Source Virtual Reality A New Creative Medium Where The Default State Is Belief, 2015  (opens in a new tab)

• Embrace Opposing Ideas

  Leadership

  Successful leadership requires the ability to manage the tension between conflicting priorities like saving versus investing without losing focus.

  2 more supporting quotes are in the member records.

  Source Capabilities And Sensibilities, 2012  (opens in a new tab)

• Abstract Problems to Create Templates

  Strategy

  Focusing on solving highly technical or abstract problems can lead to the creation of foundational templates for future practical designs.

  Supporting quotes

  • “The historian Thomas Kuhn once observed that "in science, novelty emerges only with difficulty.”

  2 more supporting quotes are in the member records.

• Prepare for the low tide

  Risk

  Bad investors reveal their true nature during difficult episodes or market downturns through punishing terms and unfair dilution.

  Supporting quotes

  • “As a result, founders and investors are spending very little time getting to know each other before entering into long-term business contracts. This is bad news for everyone.”

• Document cofounder agreements early

  Team

  Decide on responsibilities and equity splits early and use legal documents to preserve friendships rather than hurt them.

  3 more supporting quotes are in the member records.

  Source Notes On Raising Seed Financing, 2011  (opens in a new tab)

• Focus on specialized support teams

  Management

  Scaling a service business requires dedicated teams for marketing, talent, and market development to solve specific customer problems.

  Supporting quotes

  • “VC is only partly about investing. It is primarily a service business whose purpose is to help entrepreneurs.”

  1 more supporting quote is in the member records.