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Vishu Bheda

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Medial • 5m

Keith Rabois explains that the key to LinkedIn’s success was investing 80% of resources in virality When LinkedIn started, it took 2 years to reach 1 million users, and they had almost no revenue in the first 2-3 years. Keith, who joined as employee #20, shared that LinkedIn’s success came from founder Reid Hoffman’s focus on creating a viral product. With no budget for customer acquisition, Reid prioritized making LinkedIn naturally shareable. Around 80% of their resources were dedicated to improving virality. They measured success by ensuring their viral coefficient (how many new users each user brings). Once that was achieved, they shifted focus to building other features. This strategy highlights the importance of solving key growth challenges early to create a strong foundation for long-term success. If you found this helpful, then follow me for more startup insights.

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