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
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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.