The Curse of a Platform Technology
A platform technology is one that may be used in a variety of fields. Some hypothetical examples include:
A molecule of a new type which allows the design of therapies by attaching a part on one end that targets cell receptors, and a therapeutic part on the other
Development of a new catalyst which speeds up fermentation reactions and increases yield of a desired product
Improved capacity for AI to scan and summarize a document
Cloud computing capacity
What do platform technologies have in common? The answer is that they have many potential users and uses, but no obvious single customer who stands out as the best buyer. They’re dangerous for an entrepreneur, because they represent general capability rather than focus.
The Trouble with “Nice-to-Have”
I once worked with a terrific entrepreneur who had some blind spots. He dabbled in publishing, using the profits from a successful startup he’d built. He was smart and saw the promise of DVDs before they were widely used. He published a variety of informational DVDs and had a catalog with no unifying theme. No one would want more than one of his offerings. He provided general knowledge rather than specific, in-depth, useful content. He put a lot of money into this venture before realizing it wasn’t working.
He was a good friend; I worried about him. Partway through his journey, I wrote him a summary business plan just to try to convince him not to keep pursuing generalized offerings.
His response was, “Peter, I know you’re right. But you know me…”
My friend’s venture and platform technologies have a lot in common: interesting, potentially useful in some circumstances, but lacking a market or focus.
It may be that your excellent research has led you to a Ph.D. and a platform technology. Be careful. It’s not unusual for scientists who have developed platform technologies to be excited by the breadth of potential uses. They boast that there are myriad applications where their technology can improve efficiency. They’re still thinking like researchers, not like entrepreneurs. They haven’t yet realized they have to find customers for whom their technology is a must-have. If you ask the scientist who will buy their technology, they often won’t be able to give you a job title—or even an industry.
What are the problems with platform technology?
Everybody will like it.
Everyone will say, “Yes, it would be nice to have this.”
Everyone you talk with will say it’s a “nice-to-have,” which confuses and distracts you—because what you really need to find is the person for whom it’s a must-have.
You developed this great technology. You can see it being used everywhere. Every time you have to eliminate a potential market because your technology is only a “nice-to-have,” it hurts. Your impulse is to argue rather than to learn.
Every time you abandon a potential market, you reduce the size of your dream. That hurts too.
How should you deal with this problem?
Here are several suggestions:
Learn to talk to people about their problems, rather than pushing your technology. This is one of the skills the I-Corps program teaches. It’s crucial. As one of the mentors at MIT’s Venture Mentoring Service summarized: “Fall in love with the problem, not the technology.” It takes discipline—but it’s necessary.
Find out—don’t assume—for whom your technology is a must-have. Find a particular job title who wakes up at four in the morning worrying about the problem you solve, who has a budget, who wants to buy, and who’s in a hurry to adopt what you do.
Test your hypothesis. Don’t rely on one excited person. See if anyone actually buys what you’re selling.
Learn the market. If you want to sell to this industry, you have to understand how it works. You can’t look as though you can’t be bothered to understand your customers’ world. You won’t get far by simply asking what they need—you need to already know.
Focus. Sell to this industry, these job titles, these people. Figure out how to reach them, how to sell to them at a reasonable cost of sales, and how to expand your sales once they’re satisfied.
Once you’ve gotten a good foothold in a market, only then should you begin thinking about expanding into another.
If you can do this, you’ve avoided the curse of having a platform technology. It’s not easy—but you have a chance to succeed if you follow a strategic and calculated plan.
The Takeaway
Platform technologies feel exciting because they could be used everywhere—but that’s the trap. Without a clear, must-have use case and a real buyer, broad potential won’t get you to market. Focus beats possibility. Start by solving one urgent problem for one paying customer.
Not Every Pitch Is Ready (Especially with a Platform Tech)
If you're wrestling with how to position a broad technology for a focused market, you’re not alone. You also don't have unlimited chances to get it right.
I offer a limited number of pitch scrubs for founders who are past the idea stage and preparing to raise real funding. It's a high-level, high-impact session for those ready to move from “nice-to-have” to investable. >>>Learn more