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The Cold Start Problem

Using Network Effects to Scale Your Product

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The Cold Start Problem

By: Andrew Chen
Narrated by: Andrew Chen
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About this listen

Brought to you by Penguin.

A transformative guide to growing any business, from one of Silicon Valley's most esteemed investors.

Why do some products take off? And what can we learn from them?

The hardest part of launching a product is getting started. When you have just an idea and a handful of customers, growth can feel impossible. This is the cold start problem.

Andrew Chen has a solution. As a partner at the pre-eminent VC firm Andreesen Horowitz, he has invested in some of the world's fastest-growing companies. Along the way, he's become one of the most renowned bloggers in tech - hailed by Wired as a 'true Silicon Valley insider'.

Now, Chen reveals how any organisation can surmount the cold start problem. His solution lies in the network effect: the way a service improves as more people sign up. It means that today's leading products - from Wikipedia to to WhatsApp - get more powerful with every additional user.

Drawing on interviews with the founders of LinkedIn, Zoom, Uber, Dropbox, Tinder, Airbnb and more, Chen unpicks how to start and scale these network effects. He reveals how to build an 'atomic network' that is just big enough to sustain itself. He uncovers how to spot the tipping point after which growth takes care of itself. And he explores why some big companies manage to sustain viral network effects for years (while others quickly stop growing).

The result is a one-stop guide to scaling a product, road-tested at some of the world's most valuable companies.

©2021 Andrew Chen (P)2021 Penguin Audio
Entrepreneurship Business Silicon Valley
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5* - Would recommend to my network.

An excellent write up about the importance and impact of network effects. Brilliantly illustrated with relevant examples and practical applications (not just those that would apply to Uber).

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Good overview of growth problems.

Good overview and will spark growth ideas. Andrew bundles in a lot of just standard scale benfits and mixes them up with network effects in a few places that feel like padding. it's also very under centric and if you're not planning on burning 100 billion dollars that means some of the lessons can't be applicable.

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Useful, practical, and fascinating. New frameworks

Useful, practical, and fascinating. The definitive book on growth for the fastest growing start-ups and tech companies. I read Andrew Chen's essays, but this is his masterpiece.

The book details a new framework and vocabulary for understanding network effects. It cuts through the growth jargon and debunks common misconceptions. It gives you that sheer joy of understanding. Intellectual goosebumps. More importantly, it provides new actionable insights which you cannot find anywhere else. The audiobook is easy to listen to. Highly recommend.

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the mindset behind the products that use networks

it's very helpful to build your mindset to build your next product using network effects tactics and methods. Full of stories and examples of big successful companies

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great book

learn a lot about how fast growth start up to work and how they scale definitely a good book

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Masterclass on network effects

As a new network start-up founder, this book has given me ideas for early growth that are now my number 1 priority and a key traction point in my pitch deck. Thank you Andrew Chen.

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Deeply informative

This book is one of those rare gems that leave you far more knowledgeable than when you began. It’s one I will inevitably revisit. I hope/expect it to become a book that is mentioned to every entrepreneur as a must-read.

Dillon

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Even if you've read the blogs...

This is well worth reading. A future classic for anyone in SaaS or the tech industry.

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Great book for anyone building a start up in tech

Regardless of sector, this is great listen for anyone looking to grow a product, service or community!

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Excellent read

Andrew - brilliant and hope to work with you on my next generation marketplace, Doji Ltd

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