Network Effect
Noun · Startup & VC
Definitions
A phenomenon where a product becomes more valuable as more people use it. The telephone is the classic example: one phone is useless; a billion phones form the most valuable communication network in history. Facebook, Uber, and marketplaces all depend on network effects.
In plain English: When a product gets better the more people use it — social media is useless with one user but invaluable with billions.