There are good reasons for partnering with a startup even if your company has internal innovation efforts underway. Here are some advantages.
Don’t rule out partnering with a startup even though your company may be many times larger than the startup. There are characteristics that startups have that may enhance your company’s internal innovation efforts. Steve Blank discusses these advantages.
If you decide that you not only want to build innovation inside but you might want to work with some startups outside, remember startups by their very definition are operating with speed and agility and moving at sometimes what appears to an existing company at a blur. And so they’re desperate to find product market fit, and they’re desperate to kind of find a repeatable and scalable business model. So what you could get is the speed of engineering, the speed of product development, and you can also be piggybacking on the fact that if they’re raising a bunch of money if they’re a venture funded company, and they’re also advertising they’re cost of development, not only with their partnership with you, but across multiple customers.
So in fact they could be putting tens of millions of dollars on solving a problem that you might not actually have that same budget. So even although your company might not be a 100 or 1000 times larger than a startup, they might actually be putting more resources at more speed on a very specific problem that you need to be solving.
Published Date: Jul 27, 2015
Author: Michael Krigsman
Episode ID: 224