The collaboration between corporations and startups is now a sought-after business trend.
It is one of the most economical relationships in the 21st century. This has been a key learning for Early Metrics, the company has rated thousands of startups for three years now.
Early Metrics help entrepreneurs gain visibility and credibility with investors and business partners. They provide transparent feedback to entrepreneurs creating a startup.
In the first installment of the four-part series, Early Metrics discusses the aspect of the two business segments coming together. It will also talk about how strategically fit they are.
Come to think of it, startups are like the Davids of the business world. These small but significant individuals or teams have the ingenuity and creativity to find out new business solutions.
On the other hand, corporations often have access to opportunities, networks, and funding. They also often have a research and development department. This results in a much organized, more concrete product development process.
While it might look like a David vs. Goliath battle for the target market, corporations and startups almost always end up needing each other in the end.
At one point or another, corporations and startups alike are looking for ways to benefit from each other. Startups are now considering acquisition as an exit route or even an end goal for their projects. Corporations are also looking for startups who offer fresh ideas and solutions that help improve their offerings to their target market.
It also becomes a symbiotic relationship, where corporations come in contact with startups as a way to test their ideas for product development. Corporations save time while startups increase their experiences and also make new connections along the way.
Here’s an excerpt from the article, where Early Metrics show an example of corporations who failed to adapt to the needs of the time. It also identifies reasons for companies to take a deeper look at why they need to create relationships with newcomers in the business.
Nokia, Motorola or Kodak are extremely well known to 30 + year olds but far less to anyone under the thirties. Why?
These corporations died (or nearly did so) because of extremely brutal technology shifts that they could not foresee, integrate, lead, or even accept: for Kodak, distrust in digital photo, for Motorola, non-consideration of the 3G protocol, for Nokia, the rise of touch screens.
For tech companies, a unique technological change can, therefore, have a dreadful impact, which is why they need to be as perceptive to market trends and consumers’ needs as possible if they are to survive innovation cataclysms.
Find out how necessary is the friendship between a corporation and a startup from the first installment of the Early Metrics Series. See the full article here.
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