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PlatformOS

DeckSend

Unit Economics

Why you should NOT work with Platform

I spend a lot of time talking to aspiring founders about why Platform is the best Co-Founder they could have.

However, Platform is not for everyone, and I thought it would be fun to talk about why you might not want to work with Platform:


1. You think raising money is most of the battle

There are plenty of sources of traditional venture capital out there. If you think that raising money means you've already "won" and you can succeed from there, Platform is not for you. We believe that raising money is the result of execution and building a company with viable unit economics.

2. ...or you’re rich enough that you can self-fund

If you have the means to self-fund/bootstrap, lucky you. The majority of people don't have the kind of wealth or "friends and family" they can tap to fund their startup. This is especially true of founders from underrepresented groups.

3. You want to build in stealth mode and only show the world when your product is fully ready

"Stealth mode" is anathema to Platform. We are zealots about building in the open. For every startup that successfully emerges from stealth mode, there are 9 other startups that come out of stealth mode to discover they've built something that no one wants.

4. You think you know enough about building a startup that you don’t need help or coaching

Platform provides founders with a methodology for building, a syllabus, a large network of subject matter experts, and weekly coaching. If you've done it all before, and think you can go it alone, Platform is not for you.

5. You’ve already found product-market fit and your unit economics work

We don't claim to know upfront what the right product is for a given unmet need. However, we have a great process to work out what the right product is, to ramp growth in a methodical way, and to ensure that a startup can make money through our Winning Metrics. We continue to learn more every day. If you've already found product-market-fit and you've got a CACD of < 12 months, you're too late for Platform.

6. You’d rather own 50% of a $100M startup than 10% of a $10BN startup

For some founders, ownership % is the most critical number to defend, and a matter of personal pride. We understand this motivation but, given that the vast majority of startups fail, we believe that founders should focus more on likelihood to exit at all, and the value at that exit.

7. You already have co-founders

Platform's model is to be a "super co-founder". If you already have multiple co-founders, it will be hard to divvy up ownership in a way that makes Platform's economics work.

8. You love busy work

As a pre-seed co-founder, there are many different hats you have to wear, and many tasks that just need to get done - for example, setting up and running payroll, registering with state tax authorities, buying health insurance, choosing a bank, etc. Unfortunately, many of these tasks have nothing to do with finding product-market fit. We have people that take these off founders' plates but some people love variety and taking on everything.

9. You have a big enough personal network that you can get the expertise you need, when you need it

Being a founder means solving an endless series of problems, many in areas you are unfamiliar with. To solve these problems quickly and effectively, with few errors, you need to tap the expertise of people who have done it before. Platform has a network of over 60,000 individuals who can respond to your requests for help when you need them.

10. You’re a loner, happy to grind away on your own

Loneliness is one of the most common issues that founders struggle with. Platform provides a structured and supportive environment to help you succeed. However, some people like to fly solo.


Comments

about 1 year ago

President @ Winarsky Ventures

Great discussion!

about 1 year ago

Excellent summary points @Jeremy Burton . I find myself suffering from about half of these (even though I know I shouldn't) and sometimes find it hard to open up on them. Thanks for calling them out and encouraging the community to trust the network feedback and support.

Jeremy Burton core team
about 1 year ago

CEO | Founder | Managing Partner @ Platform Venture Studio

:-) Tim is now getting credit for things I write


about 1 year ago

I was so enamored by the insights that I missed the author... but shoulda known :) Well summarized!

Lissette Arias core team
about 1 year ago

Partner and Chief Design Officer @ Platform Venture Studio

Nice write-up! 👏👏