A venture capitalist 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 networks effects to launch and scale towards 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...