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The Cold Start Problem: How to Start and Scale Network Effects Kindle Edition
A startup executive and investor draws on expertise developed at the premier venture capital firm Andreessen Horowitz and as an executive at Uber to address how tech’s most successful products have solved the dreaded "cold start problem”—by leveraging network effects to launch and scale toward billions of users.
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 draws on his experience and on interviews with the CEOs and founding teams of LinkedIn, Twitch, Zoom, Dropbox, Tinder, Uber, Airbnb, and Pinterest to offer unique insights in answering these questions. Chen also provides practical frameworks and principles that can be applied across products and industries.
The Cold Start Problem reveals 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.
- LanguageEnglish
- PublisherHarper Business
- Publication dateDecember 7, 2021
- File size5.9 MB
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Editorial Reviews
Review
"A practical handbook for entrepreneurs struggling with how to effectively apply what can be a devilishly tricky concept." — Business Insider
About the Author
Product details
- ASIN : B08HZ5XY7X
- Publisher : Harper Business
- Accessibility : Learn more
- Publication date : December 7, 2021
- Language : English
- File size : 5.9 MB
- Screen Reader : Supported
- Enhanced typesetting : Enabled
- X-Ray : Enabled
- Word Wise : Enabled
- Print length : 395 pages
- ISBN-13 : 978-0062969750
- Page Flip : Enabled
- Best Sellers Rank: #131,315 in Kindle Store (See Top 100 in Kindle Store)
- Customer Reviews:
About the author

Andrew Chen is a general partner at Andreessen Horowitz, investing in early stage startups — focused on the themes of games/entertainment, marketplaces, and next-gen social products. He is on the boards of Clubhouse, Substack, Z League, Sleeper, All Day Kitchens, Sandbox VR, Reforge, and others.
Previously, he served as the head of Uber's rider growth teams, where he focused on user acquisition, retention, and engagement during the company's meteoric pre-IPO years. He writes about user growth, metrics, and network effects at andrewchen.com and has been cited at Wired, WSJ, and New York Times. He holds a B.S. in Applied Mathematics from the University of Washington, where he graduated at the age of 19.
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Customers find this book to be a riveting read that provides a wonderful framework to understand network effects. They appreciate the information quality, with one customer highlighting the detailed examples from numerous companies.
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Customers find the book highly readable, describing it as an amazing and riveting read that is a must-read for founders and builders.
"...observations about how to solve the chicken egg problem, with lots of case studies and lots of details from numerous companies...." Read more
"...despite my complaints about the length --- this is one of the best business books ever - strongly recommended." Read more
"...effects and I think this book will help to educate us, with practical examples...." Read more
"Excellent book covering the nuances of network effects! Will stay with me on my founder journey for a long time!" Read more
Customers praise the book's information quality, particularly its wonderful framework for understanding network effects and essential observations, with one customer highlighting its detailed examples from numerous companies.
"...is in the top five of the notes I have taken, it is chock-filled with essential observations about how to solve the chicken egg problem, with lots..." Read more
"...framework to understand network effect and contain great examples from the real world. Although i strongly feel this could be shorter" Read more
"A great manual for platform companies, explaining what network effects is...." Read more
"...It is a book written, developed, and communicated with examples and experiences that can only come from the lenses of a veteran start up and venture..." Read more
Customers find the book well written, with one mentioning it is easy to read.
"...(“case studies” as we call them in enterprise software sales) are well written, short and easy to read...." Read more
"...This book is just not a technical knowledge base. It is a book written, developed, and communicated with examples and experiences that can only come..." Read more
"While the book is definitely well structured and written, it’s a collection of stories...." Read more
"Insightful, fascinating and eloquent!..." Read more
Reviews with images

This book will save your marketing budget.
Top reviews from the United States
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- Reviewed in the United States on November 13, 2022I am writing this review out of anger, for all of the so-called "helpful" negative reviews that for some reason are at the top of the heap, these reviews are dangerously misleading, and proof positive that the best way to buy books on Amazon is simply to buy the book, check it out, and if the negative reviews are right, return it, and if they are wrong, keep it.
Trust me, this is a book you are going to want to keep, as I read a book I take notes, and the more notes I take, the better the book is, and this book is in the top five of the notes I have taken, it is chock-filled with essential observations about how to solve the chicken egg problem, with lots of case studies and lots of details from numerous companies. It's an essential book for anyone who is starting a company.
The author is clearly an insider and knows these companies from the inside as well, and you are not going to find much information in this book from other sources, for that reason. Several of the things that he has talked about I have done Google searches for, and come up completely empty, so if you believe that information is gold, as I do, that means that to not read this book is to be giving up lots of pieces of gold.
Do yourself a favor, get this book, start reading it, and after you'll have learned a valuable lesson about how essential it is to ignore negative reviews and just try things out yourself.
- Reviewed in the United States on November 6, 2022This book is really for someone who is starting a new marketplace — which I am. I took away some good points but those have to be uncovered in the chapters. The book is not that well written. I had a difficult time completing it; the stories often didn’t seem on point and forced. His introductions are not clear and end of chapters have no summaries. I think he needs a proper business editor to help him next time. Nonetheless you may get a few nuggets. I’d suggest to focus on his one experience at Uber with clear points and then add some anecdotes from others.
- Reviewed in the United States on June 9, 2024This was recommended to me by one of the greatest product people in fintech (who shall remain nameless). Great ideas and expansion upon Metcalfe's law and good lenses on product adoption methodology. While Andrew throws Metcalfe's Law out the window, i do read his book as a set of important corollaries and conditions around the dynamics of Metcalfe's Law (which metcalfe himself never turned into a formal law !)
Most books can be essays, most essays can be blogs, most blogs can be tweets, and most tweets can be deleted. This book should stay a book, but it is about 150 pages too long. Most of the important ideas and examples will be found scattered throughout the book but you have to bear with overused Uber examples. Additionally, Andrew could have added in non Silicon Valley based product use cases to make this very important work more useful to a much broader audience.
All that said, despite my complaints about the length --- this is one of the best business books ever - strongly recommended.
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Reviewed in the United States on May 19, 2025Es el libro de Redes más completo, mejor explicado, es realmente fantástico, muy práctico André Chen realmente tiene toda la experiencia y la preparación para realmente escribir un libro para explicar un tema tan complejo, muchas felicidades Andrew
- Reviewed in the United States on January 2, 2022I summarized my review as “fabulous, obviously” because Andrew Chen, from my reading of his newsletter, tweets etc over the years, seems to know this content absolutely “cold”. He IS the guru.
Among the many things I liked about the book is it’s structure that matches the “stages of the cold start framework” (Figure 8 on page 44 of the hardcover edition). The stories (“case studies” as we call them in enterprise software sales) are well written, short and easy to read.
I read the first half of the book diligently, taking notes, highlighting, re-reading sections etc. I read the second half a lot faster and skimmed quite a few sections.
Strange as this may sound, one of the best parts about the book is in the “acknowledgments” section (last “chapter”) where Andrew gives credit to everyone that helped him write and produce the book. One realizes that it takes a village to raise a child, produce a book, close a deal etc.
One final note: my standard for a truly amazing book is “is it worth reading a second
time?”. My favorite books (eg., “Thinking Fast and Slow” by Kahneman, “Ascent of Money” by Niall Ferguson, “The Future of Money” by Prasad, “Naked Economics” and “Naked Money” by Wheelan, “Basic Economics” by Sowell … these come to mind) are ones that I’ve read multiple times. Does “The Cold Start .. “ make that list ?
…. The answer is “no”, and the main reason is that the topic is a little dry and unrelated to my core love of economics, finance, neuroscience and lately geopolitics…
However, I recommend every tech marketeer read this book.
Awesome job Andrew Chen !
- Reviewed in the United States on December 9, 2022The book contains wonderful framework to understand network effect and contain great examples from the real world. Although i strongly feel this could be shorter
Top reviews from other countries
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FEDERICOReviewed in Italy on November 24, 2022
5.0 out of 5 stars L'autore non smentisce.
Ottimi spunti per approfondire e scovare nuovi punti di visti su temi davvero importanti per sviluppare strategicamente prodotti innovativi
- RAGHUVEERReviewed in Spain on May 5, 2022
5.0 out of 5 stars Detailed Descriptions of Operational challenges or setup of initial networks
Best book ever the way the things are described ,the order of the content and the in depth detailed step by step operational challenges faced by the big companies adds a lot of value to the users who want to build their own company
- Bindi DhariaReviewed in India on July 10, 2022
5.0 out of 5 stars Very useful book
Am looking to start a network based product so very useful book. It gives some good concepts on how to think about the setup process in a stage wise manner. Would definitely recommend this book if you are thinking of a network based approach. Check out the number of bookmarks I have to make sure I come back to reference different points
Bindi DhariaVery useful book
Reviewed in India on July 10, 2022
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- JonathanReviewed in Singapore on March 13, 2022
5.0 out of 5 stars Must read for investors and builders
Factual and concise storytelling. Great insights into the secret ingredients which helped some of the most famous apps succeed
- Henrique S.Reviewed in Brazil on March 2, 2025
5.0 out of 5 stars Pretty useful and recommended reading!
Arrived in perfect conditions (hardcover)! Really good and kinda underrated business book. Definitely recommend it, specially to those who are starting some form of business and might be struggling to optimize their products. The book gives plenty of examples to drive home the points the author makes through it.
Henrique S.Pretty useful and recommended reading!
Reviewed in Brazil on March 2, 2025
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