$345 million per employee
In 2014, Facebook had a problem. They were being out-competed by WhatsApp, a 55-person startup. Facebook reacted by buying WhatsApp for $19 billion. How could a business be worth $345 million per employee? A century ago, it would have been inconceivable that a 55-person team could out-compete Standard Oil's 60,000 employees. Industrial businesses grow with labor and distribution. Digital products need upfront investment to build them but can deliver lasting value with low marginal costs. WhatsApp leveraged the software business model's attributes to generate such an efficient business.