Andrew Chen

The Cold Start Problem

1. IDEA 1

   New networks start empty

   Chen, a technology investor, explains that products built on network effects, like messaging apps or marketplaces, face a cold start problem: they are useless until enough people join. Solving this problem is the first challenge.

2. IDEA 2

   Start with an atomic network

   Chen suggests building the smallest network that can work on its own, which he calls an atomic network. Small, dense networks can grow. In his view, a small group where people really use the product is stronger than a thin spread of users across many places.

3. IDEA 3

   Focus on the hard side

   Chen explains that every network has a hard side, the users who are harder to attract, such as drivers or sellers. Winning them is crucial. In his view, once the harder group is on board, the easier side usually follows, since they come for the people already there.

All 8 ideas from The Cold Start Problem →