Dealing with Platform Risk

Many startups begin by attaching themselves to another platform. I’ve written before how startups can ride a platform advantage.

Today, I saw the following exchange between two Atlantans that talks about dealing with platform risk.

http://storify.com/melonakos/platform-risk-recognition-and-mitigation

I love the above exchange for a number of reasons:

It is truthful about the startup’s platform risk. It would be much worse to ignore the reality.
It shows that the startup is able to move faster than the BigCo platform, which is almost always the case for great startups.
It shows a trajectory aimed at reducing dependence on the platform’s APIs.
It shows the startup is able to do things that continue to add sufficient extra value beyond what the BigCo platform can provide.
It positions perfectly against the platform in a way that is both flattering to the BigCo as well as explanatory about why the startup’s product is awesome.

We’ve faced a variety of platform risks in our own startup. I think most startups go through the platform risk mitigation phase, and some die (a few are acquired) there. With nimble execution and a tight customer feedback loop, it is often possible to out innovate and stay ahead of the platform risk curve.

What are your thoughts on dealing with platform risk?

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