A founder’s guide to working with corporates

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In an episode of Silicon Valley, startup founder Richard Hendricks reveals something that no venture capitalist wants to hear — he has no business plan.

“I cannot guide you until you give me something to guide,” the VC tells Richard.

Now, imagine the same situation happening with a corporation. It’s a scenario that’s going to become more common.

The rise in collaborations between corporates and startups today signals a change in corporates’ attitude toward the latter. Such tie-ups are now seen as win-win. According to a study on startup and corporate collaborations by Imaginatik and MassChallenge, 23 percent of corporations now see working with startups as “mission critical.”

Don’t be like Richard. Photo credit: Giphy/Silicon Valley.

With weak understanding of how corporates operate, startups can make big mistakes, much like what Richard did. But with preparation, entrepreneurs can avoid a corporate partnership going sour. Here are some things startups should ask themselves when working with corporates:

What’s in it for me?

This is the first question that comes to mind when you talk about collaboration.

By collaborating with corporates, startups can get access to mentors, office space, funding, and publicity. It’s an opportunity for them to grow their customer base, build proprietary data and marketing capability, as well as tap experienced professionals in the industry. Startups also have the chance to better tailor their businesses for their target market quickly.

Serge Taborin, global digital innovation director at Aviva, believes that corporates can offer a fertile ground of users to do market research. “We can help startups quickly test their hypotheses and product attractiveness with real customers and help them evolve and scale their business.”

What do I bring to the table?

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When going into a corporate partnership, it is important to ask what your startup can offer the company you’re working with. Ideally, startups should already know what their value proposition is and how they can solve the corporate’s need.

Serge believes that before meeting the corporate, startups should answer this question: “Is my business suited to this customer group?” Corporates work with startups for many reasons. They may want access to new technologies and trends, or may be looking to acquire.

“Innovation will only happen when current thinking is challenged,” says Serge.

Wayne Siew, managing director and founder at startup accelerator Amplify, thinks that startups simply need to do something that corporates can’t do themselves. It’s important to remain relevant and evolve regardless of the metrics agreed on initially in the partnership.

“Focus on what value you can bring to the table. If they don’t want to re-engage you, you’re no longer relevant,” says Wayne.

Be prepared to explain your startup’s potential to transform and disrupt an existing suite of products, including your assumptions. Serge advises startups not to lose the drive to create change and have patience.

“Innovation will only happen when current thinking is challenged,” says Serge.

What soft skills will I need?

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Needless to say, professionalism is an important trait. Entrepreneur India says corporations look for “commitment, culture, speed, and leadership” in the startups they choose to work with.

Showing commitment and delivering results establishes trust. “A bad rep carries very quickly through the industry. When you say you will do something, do it,” says Wayne.

Didem Un Ates, the global partnerships director of Microsoft Accelerator, writes in an article that startups should impress by making corporates’ lives easier. Soft skills such as dressing well, being punctual, networking with stakeholders, and even being aware of which team in the corporate you may be outperforming can take you a long way.

Didem also urges startups to ask corporate simple questions like “what keeps you awake at night?” This may unlock key concerns they may be facing.

“Do I have what it takes?”

Startups should expect to have to prove themselves, too. Wayne notes, “Your partner does not exist to give you more customers and business. You want it? Work for it.”

While delivering value and soft skills matter, there’s still one key piece to a partnership — integrity. Digi Accelerate, the accelerator program of Malaysian telco Digi Telecommunications, previously withdrew their investment in gas delivery startup Grabgas due to “inconsistencies” in its disclosure of financial data.

Wayne believes that startups need to remain mindful of their limitations. “It’s a two-way relationship and you need to operate with a high level of integrity.”

Be truthful. Results only matter if they are real.

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Aviva ‘Digital Garage’ in Singapore is a dedicated space where technical specialists, creative designers and business leaders explore, collaborate and test new insurance ideas and services which make financial services more tailored and accessible for customers.

Aviva is hosting a Pitch to VC event at the Aviva Digital Garage in conjunction with the Fintech Festival week. Together with 7 other venture investors, startup founders are invited to pitch their early-stage high-growth startups. Hone your pitch, get feedback and network with the sharpest startup minds in Singapore. Register below.

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from Tech in Asia https://www.techinasia.com/startups-corporates-partnerships
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