When a network-based product launches, it faces a tricky challenge: in order for the product to be valuable, people need to use it. This chicken-and-egg problem is what Andrew Chen, a General Partner at the prominent venture capital firm Andreessen Horowitz, calls the "Cold Start Problem." Famous examples of such products include Facebook, Slack, and Airbnb. In his book "The Cold Start Problem," Chen offers insights into the nature of network effects and how companies can overcome the Cold Start Problem.
(1:17) Introduction
(2:16) Introduction to Network Effects
(8:55) The Cold Start Problem
(16:13) The Tipping Point
(20:22) Escape Velocity
(27:15) The Ceiling
(33:16) The Moat
(38:27) Conclusion