Andrew Chen | The Cold Start Problem: How to Start and Scale Network Effects | Talks at Google

Startup executive and investor Andrew Chen discusses his book “The Cold Start Problem: How to Start and Scale Network Effects“, revealing what makes winning networks thrive, why some startups fail to successfully scale, and, most crucially, why products that create and compete using the network effect are vitally important today. Although software has become easier to build, launching and scaling new products and services remains difficult. Startups face daunting challenges entering the technology ecosystem, including stiff competition, copycats, and ineffective marketing channels. Teams launching new products must consider the advantages of “the network effect,” where a product or service’s value increases as more users engage with it. Apple, Google, Microsoft, and other tech giants utilize network effects, and most tech products incorporate them, whether they’re messaging apps, workplace collaboration tools, or marketplaces. Network effects provide a path for fledgling products to break through, attracting new users through viral growth and word of mouth. Yet most entrepreneurs lack the vocabulary and context to describe them—much less understand the fundamental principles that drive the effect. What exactly are network effects? How do teams create and build them into their products? How do products compete in a market where every player has them? Andrew Chen is a general partner at Andreessen Horowitz where he invests in consumer technology, including social, marketplace, entertainment and gaming experiences. Today, Andrew serves on the boards of All Day Kitchens, Clubhouse, Envoy, Hipcamp, Maven, SandboxVR, Singularity6, Sleeper, Snackpass and Substack. He is a prolific writer and leading voice on mobile, metrics and user growth. He is also a board member and instructor at Reforge, which offers selective growth-focused programs for experienced professionals in marketing, product, data and engineering. Get the book here: Moderated by Ali Norup.