Corporates & Startups: How To Make David and Goliath Best Friends
Why do you want to work with startups?
With over 250 corporates attending the TechBBQ summit in 2016 and 600 in 2017, the trend is clear – corporations now want to enhance their position in the ecosystem and infuse a shot of startup lifeblood in their DNA. However, as in any transfusion, the risks are high but the benefits are even greater. Here are 5 international co-working practices, which might help you out.
With corporate-startup collaborations on the rise, the challenges in making this partnership work is more real than ever. Therefore, it is important to remember that a successful corporate-startup engagement can reap higher and better benefits for both partners with the right focus and objective.
A recent TechBBQ survey underlines that corporates are keen to jumpstart and drive their innovation to the next level via collaborations with startups. For market-leading Danish corporates, the top 3 drivers for working with startups are exploring new tech (80%), exploring different business models (60%) and scouting for M&A potential (50%). For the startup community, these drivers are often an access point to their market, business expertise, and funding.
Do you have a structured process for interacting with startups with the aim of collaboration/partnership?
5 best practices
Collaborations always need a high level of commitment and more so when the partners have polarized approaches. Get inspired by the best practices, based on international studies, that help you create a mutually beneficial partnership.
Research the company and go for a partner where you know that your goals are aligned.
Have realistic expectations about timelines and corporate processes.
Outline progress parameters and ask for next-steps projections.
Be open to learning from your corporate partner.
Communicate clearly and consistently.
- Have an innovation champion in your organization and encourage active involvement in the local startup community to ensure that you find the right startup partner.
Define success and establish specific KPIs for both partners.
Create an environment of collective disruption to understand the startup perspective.
Create an equal partnership for long-term collaboration.
Believe in your startup partner even when there are some slip-ups.
Commitment to creating a win-win scenario is key to any successful partnership and this alliance is no different. For a startup-corporate collaboration to succeed, value creation is of absolute importance for both the partners.