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

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Published 2021-12-09
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: goo.gle/3F5CklE.

Moderated by Ali Norup.

All Comments (21)
  • @FromFame
    10:00 Andrew had you not voiced the book I wouldn’t have bought it since I simply can’t keep my eyes stable on text. Thank you for listening to yourself & voicing it for us. You have a fantastic voice to listen to!
  • Great talk! Pretty insightful, especially stories from Tinder, and Airbnb.
  • @tomnicocelli759
    Awesome talk. Very thoughtful. Thank you for your time. Reading the book right now.
  • @merajis
    The interviewer keeps saying “exactly” which kinda implies she already knows everything Andrew is talking about, which is kinda intimidating because Andrew is talking about a book he just launched that he spent 3 years on. I hope she’ll see this and take it into account for future interviews. Listening without interaction would be a better addition
  • Great talk but I m missing offline talks - its a totally different world with greater learning there
  • @sfguy4739
    Good talk and book. Could "have" done without all the “uh-huh, yups, and exactly” from the interviewer though.
  • @BSPoK
    Great interview. I'll definitely read the book. However, I've been searching for a book about: how to build a successful eCommerce website. From product, generating traffic and sales etc. Any suggestions that you've read and found useful is welcome. Thank you.
  • @alexd9656
    surprised that the audio is so bad though, considering it's Google and Andrew Chen -__-
  • The continuous interruptions by the interviewer are quite bothersome. Additionally, it appears that the interviewer's sound level is consistently higher than that of the guest. These factors are detracting from the overall quality of the video. Despite my interest in the content, I find myself inclined to switch it off and look for an alternative. It makes me wonder if these interruptions are intentional, possibly meant to overshadow the genuine message being conveyed.
  • @benzun9600
    Andrew you going to pay for the clean up of you trashing wedding?