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In the context of startup growth, Andrew Chen uses the term "Escape Velocity" to refer to a period of rapid, viral growth that a startup experiences. This is a phase where the growth of the startup is exponential, similar to the increasing speed of a spacecraft as it breaks free from the earth's gravitational pull. However, Chen notes that even the most successful startups eventually hit a growth ceiling, where the growth rate plateaus and then returns to growth in a cyclical pattern.
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After a period of viral growth (Escape Velocity), even the most formidable startups hit the ceiling. The growth chart turns from a hockey stick to a squiggly line (if the company does well), where products plateau then return to growth, over and over. To maintain growth, networked products must remain proactive. "Dealing with the ceiling is a never-ending battle," Chen writes.
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When a networked product launches, it faces a chicken-and-egg problem: people need to use it for it to be worth anything. So how do you start the very...
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