Pareen Lathia community builder · founder operator · occasional coder
cold start lesson

seed the hard side first

seed the hard side of the market first: experienced suppliers, returns made visible, then open the easy side to followers.

marketplaceliquidity

what to do

Every two-sided market has a hard side and an easy side. Seed the hard side first. For a product where people share liquidity strategies, that means starting with experienced LPs, respected market makers, and a few KOLs. Make their returns visible and predictable. The followers come once the hard side is proven and public.

for example

A team building a copy-the-experts liquidity product asked where to start. I pointed them at the smallest set of credible suppliers they could fully support, with results shown out in the open. Andrew Chen calls this seeding an atomic network, the smallest group that makes the product work on its own. Get the hard side dense and visible, and the easy side follows without being pushed.

the failure it prevents

Opening to everyone at once, so neither side finds the other, and the market sits empty while you spend on ads that bounce.

when this doesn’t apply

A single-player tool that is useful to one person alone has no hard side to seed. There, come for the tool and stay for the network, as Chris Dixon put it: ship the solo use first and layer the network on later.

sources

  1. How to solve the cold start problem for social products, by Andrew Chen
  2. Come for the tool, stay for the network, by Chris Dixon