A few months ago I wrote a post titled Content, Community and Commerce: Why Verticals Win. It’s been a frequent topic of conversation over the past few months, and today PandoDaily wrote an article on Houzz that brilliantly dissects a number of factors leading to the company’s rapid rise in the home improvement vertical.
In a nutshell, it highlights the self-reinforcing benefits of a highly engaged, growing user base with common interests and passions – and the magic that combination can generate, particularly with respect to content. From the Pando article:
But it’s not the sheer number of people using Houzz, be it as a daily obsession or an integral part of their business, that’s so impressive. It’s the level of content that this audience outputs and the rate at which it’s accelerating. Today, Houzz announced that it has surpassed 2 million HD design and remodeling images available on its platform. It took the company more than three years to see the first 1 million images uploaded, and yet it doubled that amount in just the eight months since the beginning of the year.
While Adi, Alon and team are leading the charge in many ways, we are seeing this happen across many market segments as users migrate from horizontal platforms to vertical ones (see my original post for other examples). And yes (disclosure), my firm GGV Capital is an investor in Houzz.