How VC firms are using the Platform role to help startups make the connections and relationships they need to succeed
In startups, as in so many other things in life, relationships are everything.
For founders, this means that it’s never too early to invest in building relationships with companies in and around your industry — particularly with the larger market players. But no founder is an island, and just as with sales, marketing, or any other aspect of the startup journey, sometimes you need a little coaching and a warm introduction.
That’s why VC firms have, in turn, invested in what’s become known as the Platform function: A leader (or leaders) who work closely with their portfolio companies to help them with business development, corporate development, partnerships and industry alliances, and just about anything else that can help accelerate their business and help facilitate a successful exit down the line.
At Vertex Ventures US, the VC firm I joined last year, the Platform function is led by partner Dom Perri. Before he came to Vertex nearly 5 years ago, Dom had a long career in business development and M&A strategy at companies including Juniper Networks, Tesla, and Dropbox, plus a few small startups that got acquired — giving him a front-row seat to all the different ways in which smaller and larger tech companies can work together, and how those relationships are best forged.
Those partnerships can make all the difference in the world for startups. Dom’s one big piece of advice for founders is to plant the seeds of partnership early. You may not see the kind of immediate return on the investment of time or energy that you would by, say, signing a big customer. But taking the time now can pay off in a big way later.
“Forging relationships with the right companies in your sphere can often be game changing, through what ends up being some form of a go-to-market partnership, like an OEM deal or a channel partnership,” Dom says. “And in some cases these partnerships turn into an acquisition as well.”
“So these are very strategic relationships that are not transactional,” he adds.
I sat down with Dom to get a better understanding of the Platform function in venture capital, why it’s become so much more popular in recent years, and how startups can get closer to mastering the fine art of relationship-building.
What is Platform and why is it so hot right now?
“Platform” is one of those terms that has a dozen different definitions depending on who you ask. Dom was the first person at Vertex to hold the role, so it was up to him to come up with his own definition. Ultimately, he came to think of the key concept as “value creation,” finding ways to help founders in ways that go beyond capital infusion. In general, it’s about helping to make connections and ensuring that founders get access to whatever they need to grow.
“It’s basically a function that plays a critical role of providing resources, expertise, and connections to your founders, well beyond the check that you give them,” Dom says. “It sets funds apart in today’s competitive landscape.”.
In practice, that might mean helping a founder find the right person at a major tech company to talk to, or lending a hand with making sure they get an invitation to a present at key industry tech conferences. It also means hands-on coaching, like guiding the startups in the portfolio through Vertex’s cloud GTM playbook, helping them to grow their pipeline and close more deals. It can also include simply introducing founders to experienced sales or marketing leaders so they can learn what “good” looks like in action.
It also includes spearheading founder gatherings for Vertex itself, including the annual Intersect gathering of CEOs and technologists — giving founders the chance to learn from each other, even as they get coaching from industry experts on sales, leadership, and everything else.
All of that extra value is why Platform has become such a big deal in the world of VC. Even with the end of zero interest rates, factors including the current AI boom have given startups more options than ever before when it comes to picking their investors. It means the VC firms themselves have to work harder to show what they have to offer.
When Dom started at Vertex, he says that the Platform role was something that only a handful of VC firms employed, making him something of a rarity in the industry. Now, against the backdrop of that changing capital dynamic, Dom says that having some kind of Platform service offering has become “table stakes,” with VC firms emphasizing the doors they can open for their founders.
What can Platform actually do for a startup?
Life can move pretty fast at a startup, but relationship-building and business development can be a longer game.
And so, Dom says that the measure of success and effectiveness for Platform is the impact it can make: The real goal is to help startups along their company-building journey, including or especially to make sure they have the best possible exit down the line.
Part of that is expert advice on building a company, from product and engineering to sales and marketing. In general, Dom says, that kind of feedback tends to come from the investment team itself: The main function of a company’s board, after all, is to be a resource and sounding board for the CEO and their leadership team.
Where Platform can make a more meaningful difference is with that focus on partnerships and business development, Dom says. It’s all about helping build up those networks and supporting meaningful connections, between, across, and beyond the firm’s portfolio.
“If your founders and CEOs are regularly acknowledging you and thanking you for the guidance and intros you’re providing, that’s success. If your network continues to grow with super impressive people and your events are always a big hit, that’s showing success,” Dom says. “And I think doing this on a consistent basis isn’t easy, but if you have a proven playbook that works, then you can rinse and repeat on the things that create the biggest impact for your fund through delivering a first-class experience to your founders.”
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