Startup Sourcing – Get to know Startups

Startup Sourcing – Get to know Startups

In today’s article of our series “Ge to know Startups”, we deal with the topic Startup Sourcing. But what is it actually? How does startup sourcing work and what advantages can it offer companies? We would like to answer these questions in our article. We also give valuable advice on how to find the right startup and what to keep in mind during a startup sourcing.

What is Startup Sourcing?

The term “sourcing” describes the process of procuring services and goods that are necessary to achieve corporate goals. This often has complex structures, especially in large companies. If a startup is now looked to in the search for the right supplier, this is referred to as startup sourcing. Startups can offer companies great added value with their smart solutions and innovative business models. The goal of startup sourcing is to become a customer of the startup as a company and to win it as a supplier.

How does Startup Sourcing work?

When it comes to finding the right supplier, companies are often rather conservative and risk-averse. But especially with startup sourcing, there should be openness for innovation on the part of the company. If you decide to work with a startup, it can make sense to conduct a needs assessment in advance to ensure a successful collaboration. In this way, it is possible to search specifically for a solution that fits. It is also important for companies to have a certain understanding and overview of the startup ecosystem. This is where experienced intermediaries can provide support. For example, once a needs assessment has been completed, it is also possible to take advantage of Startup Scouting and receive advice on choosing the right startup. Startup scouting can be performed directly after the needs analysis.

The selection of the right supplier is based on innovation, fit and price criteria, among others. If now a shortlist of startups has already been found and it should be checked which one best meets the requirements, it can be helpful to perform a Startup Due Diligence. Here Ambivation can assist in selecting the optimal partner. Furthermore, it is not wrong to set big goals in the context of a startup sourcing, because innovation needs courage. However, you should be aware of your limit at the same time. This means to clearly define goals, expectations and limits for both parties.

What are the advantages of Startup Sourcing?

There are several reasons why companies should consider startups for their procurement process. These include not only the innovative strength, fresh ideas and inventive spirit of the young companies. The startup culture can also convince with its efficient, modern working methods and open structures. Companies can often learn a thing or two from this in terms of flexibility. But the startups also benefit from the collaboration with companies. They can learn a lot from the knowledge and wealth of experience of established partners. In addition, a cooperation with an established company can mean a boost for the startup.

Startup sourcing is therefore an efficient way to bring a breath of fresh air into a company’s procurement process and offers plenty of potential for innovation and new approaches. To support a Startup Sourcing, both a needs assessment beforehand and a Startup Scouting afterwards can be useful. With the Startup Due Diligence it can be finally checked if it is the right supplier. In this way, we would like to promote optimal cooperation so that a win-win can be created for both sides.