No established company should rest on their laurels when it comes to innovation, and one way that they can access the newest, freshest ideas is to keep their finger on the pulse of startups and entrepreneurs.
There are different ways in which existing companies can collaborate with new businesses. For instance, a company may decide to make a deal to support a startup in return for a shareholding. In the process they may also gain access to the tech and ideas of that startup.
There are plenty of real-world examples of these kinds of deals working out for both parties.
Harbor-ADT Partnership For Home Security
A great example of a corporate-startup collaboration is Harbor, an app that educates on emergency preparedness, including home security. The gamified app has been gaining funding from investors and incubators since 2020, and eventually collaborated with security giants ADT.
Together, they launched a premium version of the app that included a button called HarborHELP, with features linked to ADT’s 24/7 professional monitoring and mobile safety platform.
Harbor was a very relevant product, while not a direct competitor of ADT, and they were able to use the immense popularity and power of the ADT platform as part of their deal. A great example of a collaboration working well for both parties.
While some of these investment opportunities may occur organically, there are many businesses who make deliberate attempts to cultivate these sorts of partnerships.
Models of Partnership Between Corporations and Startups
One of the ways that companies grow these partnerships from a fledgling idea is to provide support for new startups through accelerator programs.
This is a form of assistance provided for small businesses where the company may provide capital, infrastructure support, and even office space, usually in return for a percentage of ownership in a startup. There is little risk in this for the company who may already have an established infrastructure to share with potential new partners, and it may be a way for them to spot the next big idea in their industry.
Similarly, some companies may run specific business incubators, providing the tools for entrepreneurs to take their idea and run with it, in the hope that it achieves its potential.
There are more strategic investments that may take place when a startup is up and running, especially if noticed by a business operating in a similar field. The key is that the partnership should be mutually beneficial. The startup must offer something that the established business is not already able to provide, and in return the company can provide resources and investment.
Startupbootcamp: Partnering with Corporations and Government Entities to Create Accelerator and Incubator Programs for Startups
Startupbootcamp partners with corporates and government entities to create accelerator and incubator programs for startups. These programs typically focus on specific industries or sectors and provide selected startups with mentorship, funding, and resources.
Startupbootcamp's approach involves a structured curriculum, access to a network of mentors and industry experts, co-working spaces, and events such as a demo day where startups pitch their businesses to potential investors. By fostering these collaborations, Startupbootcamp plays a crucial role in accelerating the growth and success of startups while enabling established companies to tap into innovative ideas and technologies.
Collaboration between corporates and startups are an emerging trend in the world of business. According to Tawanda Sibanda from McKinsey, between 2013 and 2019, there was a 32 percent year-on-year growth in corporate venture capital (CVC) investments. On top of that, around 75% of all Fortune 100 companies have some form of venture unit operating within their business, searching for growth opportunities.