To overcome the cold start problem in a network effects business, especially in a conservative industry like finance, a powerful strategy is to create a coalition or consortium model. By giving early adopters ownership and governance rights, you align incentives, build trust, and transform would-be competitors into enthusiastic evangelists for the new network.

Moonshot AI overcomes customer skepticism in its AI recommendations by focusing on quantifiable outcomes. Instead of explaining the technology, they demonstrate value by showing clients the direct increase in revenue from the AI's optimizations. Tangible financial results become the ultimate trust-builder.

Building a network effects business with financial institutions represents an extreme version of the 'cold start problem.' The initial phase of getting the first ~20 participants is excruciatingly difficult due to trust deficits, regulation, and inertia. It's described as 'the worst idea of all time,' but the value captured after achieving liftoff is immense.

For Ethic, the feeling of true product-market fit wasn't just hitting metrics, but the moment they helped an advisor win a major new client. The founder realized this success was a replicable playbook that could be repeated, creating a flywheel for growth. The metrics then followed this initial breakthrough.

For a mature product, a key growth lever can be removing identity friction. By allowing users to bring their existing accounts (e.g., Gmail) instead of forcing a new one (e.g., Yahoo.com), you lower barriers, solve the 'cold start' problem, and can dramatically increase adoption by delivering immediate value.

To win highly sought-after deals, growth investors must build relationships years in advance. This involves providing tangible help with hiring, customer introductions, and strategic advice, effectively acting as an investor long before deploying capital.

Ethic's unique, consultative sales process didn't fit traditional molds. They couldn't hire typical SaaS salespeople or financial wholesalers. This created a talent challenge, forcing them to invent a new playbook and hire for a hybrid role combining technology setup and deep client discovery.

Investors and acquirers pay premiums for predictable revenue, which comes from retaining and upselling existing customers. This "expansion revenue" is a far greater value multiplier than simply acquiring new customers, a metric most founders wrongly prioritize.

Ethic's founder found fundraising challenging because many VCs don't understand or favor Assets Under Management (AUM) models. Unlike SaaS, AUM revenue takes a long time to scale and is difficult to get off the ground, filtering out many traditional software investors and requiring a different fundraising strategy.