Platform Risk

Noun · Startup & VC

Definitions

  1. The risk a company faces when it depends heavily on another platform for distribution, access, policy stability, or technical compatibility. Platform risk can destroy a business even when the product itself works well.

    In plain English: The danger of relying too much on another company's platform.

    Example: "The startup's whole funnel ran through the app store, so platform risk was impossible to ignore."

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