How can corporates and startups collaborate? · Research shows that increased collaboration between...

Research shows that increased collaboration between startups/scale-ups and corporates is bene�cial to both. There are several modes of interactions possible between the two, as the diagram on the right shows. The circled programmes (partnerships, procurement, investments and acquisitions) are considered the most di�cult activities to undertake due to a series of barriers - both internal and relational - that you may encounter. This handout provides details of barriers to be aware of, as well as recommendations on how to overcome them.

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STARTUP/SCALE-UP

Internal BarriersCulture, Process, etc.

CORPORATE

Internal Barriers

Relational BarriersAlignment of goalsTrust, Search, etc.

Environmental BarriersLegislation, Tax, Geography, etc.

INTERNAL BARRIERS TO CORPORATE COLLABORATION WITH STARTUPS

CULTURALSTRATEGIC

PROCEDURAL STRUCTURAL

Lack of entrepreneurial

culture

Not invented

hereRigidhierarchy

Non-transparentinformation

�ows

Rigid internalprocesses

Long decision-making process

Unclear decision-making model

Risk aversionMisaligned internalcorporate strategy

and goals

Misconception of what

startups are

Lack of top level buy-in

Individualbehaviour

Dysfunctionalcommunication

If you would like more details, either from the corporate or startup point of view, our two guides ‘ Winning Together’ and ‘Scaling Together’ are available for download from the following links: http://www.nesta.org.uk/winning-together

How can corporates and startups collaborate?

http://www.nesta.org.uk/scaling-together

For more speci�c questions or enquires, please contact Siddharth Bannerjee, Simona Bielli, Valerie Mocker or Chris Haley via the following email:

sep@nesta.org.uk

Pote

ntia

l pro

gram

mes

to e

ngag

e

One-o� events(competitions i.e. hackathons)

Rejuvenate

Sharing resources(free tools; co- working spaces)

Investments(corporate venturing)

Acquisitions(acqui-hire and buying startups)

Business support (accelerators; incubators)

Partnerships(product co- development; from startups)

Your objectives

Note: Darkness of the �eld indicates stronger suitability to satisfy key objectives

CORPORATE

Stage 2:Consider the barriers you may encounter

Stage 3:Consider internal corporate barriers

Stage 1:Consider your objectives and programmes to achieve them

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No 644104

Rejuvenate corporate culturecreate an entrepre-neurial mindsetamong employees

Innovate big brandsto attract customers,partners and talent

Solve business problems

Expand into future markets

quicker and at lower risk

by accessing newcapabilities or channels

Corporate bene�ts

New technology

Brand innovation

Fresh thinking

Entry into newmarkets

Rejuvenated corporate culture

Agility to adapt to market changes

• Find partner• Find contact point• Establish dialogue• Test common goals

• Search problems

• Build trust• Outline form of collaboration

• Cultural and language di�erences• Di�erent expectations• Lack of information

• Negotiate terms and conditions (IP etc)• Contract

• Slow decision- making • Power imbalance• IP negotiation

• Resolve con�ict• Maintain comms

• Change of contact• Loss of interest• Change of strategic priorities• Internal reorganisation

PHASE

MainAims andActivities

Barriers

Common relational barriers to collaboration

Startup recommendations to overcoming barriers

Network Network Network

Know when to quit

Consider language and look

How do I approach a corporate?What’s taking so

long?

I’m not happy with where you’re

taking my idea!

But what’s in it for us?

I P

Corporate recommendations to overcoming barriers

Listen andlearn

Be realistic about timing

Build trust

Balanced approach to IP

Don’t put all your eggs in one basket

Know when to say no

Consider your objectives

Select programmes that best deliver

Promote an internal culture of innovation

Secure board level sponsorship

DevelopKPIs

Startup programmes run by right people

Appoint internal champions

Create single access point

Make it easier for startups to work with you

Visibility /publicity

Access new markets Market knowledge

Increased revenue

Technical knowledge

Resources (i.e. workspace)

Investment

Increased valuation

Startup bene�ts

1 2 3 4

That seems too risky!

I’m not the person you need to talk

to...