Practical advice from an investor and all insurtech start ups should take notice.
" Start ups that don’t set their sights on becoming a Platform and/or “only” make it to the Company stage, can still be a worthwhile investment/endeavor but typically they are acquired by larger incumbents to fill in product gaps. Few business software Companies are able to survive the long-term independently unless they become a Platform. Start ups that don’t make it past the Feature or Product stage – in the business software market – are usually acquired or shut down for modest or no return."
Bruce Cleveland Founding Partner Wildcat Venture Partners
Follow the link for the full article
All business software companies should strive to become a Platform and do it as fast and as cost-effectively as possible. Platform companies are the ones that become market leaders, capture 76% of all the category profits, and garner a premium for their stock. They typically have valuations well above $1B. They can sustain economic down cycles because so many companies depend upon their technology to run their businesses.
https://www.linkedin.com/pulse/pursuit-becoming-platform-bruce-cleveland
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