Corporate - StartUp Collaboration

In companies, innovation flow from outside to inside can be done in seven basic ways. The most successful of these are "Closed Loop" systems that can not actually be called open innovation, although external resources are used. The most unsuccessful and problematic ones are the “idea gathering” efforts, which are like an innovation competition open to public.

Closed Circuit systems include studies carried out by a selected group of qualified experts. One of the methods used here is to use external companies. In other words, to expect some of the innovation work from an external company. These external companies can be innovation consultancy companies or suppliers, or Startups. Especially getting Startups who own a specific Intellectual Property which can be useful for a large company into the ecosystem, can strengthen the innovation potential of the company.

Surveys show that Corporate Companies are now taking Startups more seriously. 23% of companies have found working with Startups as critical. 67% said they can work with early stage Startups.

Since innovative companies already have a StartUp-like culture, it is quite natural to add new Startups to the body. Most of the acquisitions are made to get an innovative solution. This can be done at a much lower cost if the StartUp company is in its early stages without much growth. Until most of the big companies realize that a StartUp is disrupting their business, StartUp may be grown to a size that cannot be bought without serious concessions.

On the other hand, company acquisitions are not the only way forward. Before that, there are models of collaboration in the form of taking Startups in-house by providing space and resources, business support through accelerators and incubators, partnerships to develop products together, and corporate venture capital. Of course, for a StartUp to have a healthy collaboration with a large company, both sides have to gain something. For corporates, there are benefits such as quickly accessing new technologies, entering new markets, being prepared for disruptive innovations, bringing fresh perspectives to the company, and bringing a new vitality to the company culture. In terms of Startups, there are benefits such as being sponsored and cared for by a big company, using big company resources, using the business and relationship network of the big company, increasing their valuation, getting investment, reaching new markets, and increasing visibility.

There are several hurdles in Corporate-StartUp relationships that need to be managed. Cultural differences, different understandings of urgency and speed of decision making, and differences in priority are the main obstacles. Various preliminary preparations and especially on the corporate side, a mindset adjustment must be made so that the business can go on. More importantly, among the many Startups around, the ones that are right and will be useful for the company should be selected through a rigorous screening process. Companies have neither the time nor the extensive knowledge to search for and find the right Startups. For this, it is best to trust StartUp Hunters who know both the corporate world and the StartUp ecosystem well. After finding the right StartUps, it is still important to work with consultants who know both worlds well in order to ensure the healthy running of the Corporate-StartUp interface with positive results for both parties.