Startup Cooperation / Startup Collaboration

Startup Cooperation / Startup Collaboration

More and more established companies want to cooperate with startups in order to drive innovation and stay one step ahead of competitors. This is mainly due to the fact that startups not only bring expertise in highly specialized fields, but can often also act faster and more flexibly than established companies. Many decision-makers have recognized: Startups are not competitors, but attractive partners for a collaboration in which both sides can benefit.

But how is a startup cooperation defined in the first place? What types of collaborations are there? Why is it worthwhile for companies and other organizations to collaborate with young founders? And what is important to keep in mind? We would like to answer these and many other questions in the following article. In addition, we will introduce you to some successful startup collaborations and report on how we, as startup matchmakers, can help you find suitable cooperation partners.

Definition: What is a startup cooperation?

The term startup cooperation refers to the contractually defined collaboration between startups and other companies or organizations with the aim of increasing the competitiveness and future viability of both partners. Corporations, medium-sized companies, agencies and also young companies can be cooperation partners of startups. In addition, there are startup cooperations between startups and colleges or universities, startups and cities or municipalities, startups and clubs or associations and with other organizational forms.

The cooperations can be designed conceivably differently according to the individual goals and requirements. Therefore, we distinguish between different forms of startup collaborations.

Orientation: What forms of startup cooperation are there?

Which startup cooperation is the most suitable for established companies and other partners depends on many individual factors. Startups that have just been founded may primarily need support in the form of financial injections. Others may deliberately not want to bring investors on board, but are interested in development partnerships. More experienced startups can be interesting suppliers or service providers for corporations or mid-sized companies.

Ambivation’s team helps companies define goals and find the startup partner that fits them as well as the ideal form of cooperation. The following types of startup collaborations occur most frequently.

Development partnerships with startups: startup cooperation in the context of innovation projects.

Knowledge becomes more when it is shared. Fittingly, development partnerships are an attractive way for startups and established companies or other collaboration partners to work together.

Depending on the case, development partnerships can be about much more than just sharing know-how. For example, to jointly drive innovation, it is a good idea to share labs, devices and other equipment, to make joint investments in certain resources, and to cooperate on public and press relations.

Investing in startups and startup products: Funding and participation.

Many young founders do not have the financial cushion to turn their startup ideas into reality on their own. In addition to public funding programs and bank loans, investments by companies or business angels are therefore an important step towards success. An investment does not necessarily have to be linked to a share in the startup.

For example, a company can advance the costs for the production of certain goods in order to receive them later at a reduced price. At the same time, financial support can also be accompanied by non-material support, whether in the context of accelerator programs or personal exchanges between founders and business angels.

Cooperation through business relationship: Startups as service providers or suppliers

Often, however, established companies and startups simply enter into a relationship as customer and service provider. So-called venture clients are among the early customers of startups that specifically target innovative products and services to stay ahead of their competitors while driving the development of innovations in a particular field.

Ambivation’s startup experts help companies find suitable service providers and suppliers from the startup scene whose offerings deliver what they promise and – if necessary – are also scalable.

Advantages: Why cooperate with startups?

In the past, startups were often regarded as young competitors by established companies. Today, most older companies are aware of the fact that startups are, above all, exciting cooperation partners that can help them remain viable and increase their own chances on the market. The following advantages speak for a cooperation with startups:

Drive innovation

Innovation is the main interest of most companies and organizations that cooperate with startups. Startups can drive innovation more easily than established companies because they can quickly and flexibly familiarize themselves with new subject areas without complex coordination processes. However, they often lack the necessary financial, material and human resources to implement their ideas, so they are very interested in experienced, solvent partners.

Saving time and money

Why reinvent the wheel when someone else has long known how to do it? Partnering with startups can be much faster and cheaper than setting up your own projects or even development departments. The challenge is just finding the right collaboration partner from a vast, international startup ecosystem.

Access to new technologies

Cooperating with startups allows companies and other innovation partners to gain uncomplicated access to new technologies that make the way they work and their products more efficient and sustainable. Companies that cooperate with startups as investors, development partners or customers / venture clients can thus secure a market advantage over competitors and sometimes even help shape and steer the development of new technologies.

Gaining know-how

Many founders have delved deeply into specific subject areas before developing a business idea and launching their company. Compared to established companies and large organizations, the flat hierarchies in startups offer great opportunities to try things out, experiment and thus arrive at new insights. As cooperation partners, corporations and medium-sized companies, but also public organizations can benefit from this.

Increase growth potential

Only those who stay on the ball and are willing to change can hold their own in the market and continue to grow. However, being innovative away from day-to-day business and constantly driving new developments is sometimes difficult, especially for companies from medium-sized businesses, without their own development department, as well as for public institutions that function in a relatively rigid manner. Cooperation with startups can help them in particular to establish new technologies and processes and thus keep pace and remain fit for the future. Even corporations have the opportunity to increase their own growth and develop new lines of business through startup technologies.

Developing new business areas

New knowledge brings new ideas and from this, meaningful and lucrative business areas can also develop very quickly. That’s why it pays to be open-minded and keep up to date with the latest developments from the startup scene on a regular basis.

The Ambivation team helps medium-sized companies, corporations and public institutions to keep their bearings and, if necessary, to find competent cooperation partners for the development of new solutions.

What appears to be a problem or a challenge today can even become an opportunity with the help of a new technology in order to remain future-proof and possibly act more sustainably than ever before.

Remaining fit for the future

Digitization and internationalization still pose huge challenges for established companies, as well as universities and other organizations. They no longer compete only with competitors from their own region, but have to hold their own in a global market.

Especially when competitors from low-wage countries are already causing you headaches today, digital solutions and automation can help you remain viable with top quality “Made in Germany”. Startups have clever solutions ready for this or can get involved in implementing the internationalization strategy.

Strengthening your own brand

Innovation and attractiveness go hand in hand. As a company, it is not only important to convince customers, but also skilled workers. Demonstrating openness, flexibility and progressiveness through cooperation with startups is definitely an advantage.

But cooperating with startups can also help you break down prejudices against your company. Many startups – from the greentech sector, for example – specialize in making processes more environmentally friendly and sustainable. And who knows, this might even result in new business areas and additional profit opportunities for you!

Attracting skilled workers

Contact with the startup scene offers you a unique opportunity to get to know highly competent specialists for your industries. Established companies can be attractive employers for former founders and employees of startups because they may offer an environment in which their ideas can be implemented more easily.

Be inspired by “startup spirit”

Questioning one’s own working methods is good for any company. Some corporations sometimes even deliberately place employees in co-working spaces together with startups so that they can be inspired by the “startup spirit” and carry it into their departments.

The spirit of innovation, entrepreneurship, willingness to experiment, flexibility, agility and a positive culture of error can be among the characteristics that many an established company and institution can learn from startups.

Recipe for success: How does cooperation with startups work?

Cooperating with startups always involves a certain amount of time and money. There is no guarantee of success. But both sides can do a lot to ensure that the cooperation succeeds. Ambivation accompanies established companies and other organizations on request in finding cooperation partners from the startup scene and implementing innovation together. On the way to successful startup collaborations, the following steps are especially important:

• Preparation: Define expectations and goals

What need or problem do you want to solve? What do you want to achieve? What requirement should a startup partner meet? What are your expectations and what are you yourself willing to offer as a cooperation partner? You should definitely talk about this in detail with your team before initiating a startup cooperation.

At the same time, it’s important to keep an open mind. Perhaps there is a startup that doesn’t meet one of your requirements but is still the ideal partner for your project. There may be a technological solution to your problem that you have no idea about today.

• Startup Scouting: Identifying Potential Cooperation Partners

The international startup scene is already so large that even corporate innovation managers sometimes find it difficult to keep an overview of their industry alone. Taking a closer look and investing some time in the search for suitable cooperation partners is usually more worthwhile than approaching a well-known startup from your own city that may not yet have the right solution for your purpose.

You can find out exactly how startup scouting works at Ambivation here, for example.

• Startup Matchmaking: Getting to know the right partner

You have found startups that fit you and the challenge? Wonderful! Then we at Ambivation will help make sure that the cooperation actually works out. Not every startup might want to cooperate with you. Many young companies can already choose which investors they bring on board or which customers they supply.

In case of doubt, we work with you to convince them. If you wish, we can organize the meeting, use our extensive background knowledge to ensure that you do not make any gross mistakes during the initial cooperation negotiations, and act as a mediator to help you quickly overcome any challenges that may arise.

• Form of cooperation: Finding the ideal form of cooperation

Once the right partner has been found, the next step is to identify a form of cooperation that gives both parties the opportunity to contribute their skills and resources to the collaboration in the best possible way. Risks and opportunities must be carefully weighed.

Even medium-sized companies without a large financial cushion or their own innovation department can become partners of attractive startups. We will gladly provide you with an overview of suitable forms of cooperation and accompany you throughout the entire process.

• Cooperation: Making progress together through good communication

Cooperating with startups requires clear communication at eye level. Startups and established companies or public authorities often have very different corporate and especially communication cultures. Both have their advantages and disadvantages.

An important prerequisite for the success of collaborations with startups is to embrace these differences, to be open and willing to learn. At Ambivation, we are at home in both worlds and can therefore accompany our clients as “translators” and mediators when needed.

Examples: Which companies and organizations are collaborating with startups?

At Ambivation, we regularly report on new, exciting startup collaborations with interviews as well as in our monthly newsletter. Here are some examples:

• Energy transition: Kitepower cooperates with Greener on electricity generation with kites
• Recycling of building materials: Karstadt relies on startup Concular
• Health Tech: eCovery cooperates with AOK PLUS

Here you can find an overview of the latest startup cooperation examples.

Support: How do I find suitable startups as cooperation partners?

Simply get in touch with us! We will be happy to advise you and help you find suitable cooperation partners for your individual needs with our comprehensive know-how. By the way, in addition to startup scouting and startup monitoring we also offer startup tours where you can visit exciting startups and talk to the founders in person.