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Solving Cold Start Problem
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The Cold Start Problem: How to Start and Scale Network Effects

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A start-up executive and investor uses his experience at Andreessen Horowitz and Uber to explain how tech's most successful products have solved the "cold start problem" by leveraging network effects to launch and scale to billions of users.

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Solving Cold Start Problem
Solving Cold Start P...
A start-up executive and investor uses his experience at Andreessen Horowitz and Uber to explain how tech's most successful products have solved the "cold start problem" by leveraging network effects to launch and scale to billions of users.

Launching and scaling new products and services is still difficult despite software becoming easier to build. Technology startups face stiff competition, copycats, and ineffective marketing channels. The "network effect," where more users use a product or service, should be considered by new product teams. Most tech products—messaging apps, workplace collaboration tools, and marketplaces—use network effects from Apple, Google, Microsoft, and others. Viral growth and word-of-mouth help new products gain users through network effects.

Most entrepreneurs cannot describe them or understand the fundamental principles that cause them. Network effects, exactly? How do teams build them into products? How do products compete when every player has them? Andrew Chen answers these questions using his experience and interviews with LinkedIn, Twitch, Zoom, Dropbox, Tinder, Uber, Airbnb, and Pinterest CEOs and founding teams. Chen also provides practical frameworks and principles for products and industries.

The Cold Start Problem reveals what makes winning networks thrive, why some start-ups fail to scale, and, most importantly, why products that create and compete using the network effect are crucial today.
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