Startup Scouting
What does the term Startup Scouting mean? How does a professional Startup Scouting process work? And what can I do if my company needs support in the area of Startup Scouting? – To help you quickly, competently, and efficiently find tailored support when searching for innovation partners in the startup scene, we have compiled everything you need to know about Startup Scouting. Additionally, we offer exclusive insights into the methods and tools used by Ambivation’s Startup Scouts.
The pressure for innovation on companies is immense: globalization and automation, high energy costs, legal requirements to meet climate targets, and the growing relevance of artificial intelligence challenge us to rethink processes and products and invest in more efficient, sustainable solutions. For medium-sized businesses and large corporations alike, this can become a problem if the necessary expertise is not available in-house or time is of the essence, as competitors might already be one step ahead.
As a result, more and more companies are choosing to collaborate with startups. This collaboration can take various forms: as investors, they support the development of products from which they will later benefit themselves. As venture clients or early adopters, they are among the first to test new solutions. In development partnerships with startups, they combine their in-house expertise with the brightest minds in the startup scene.
However, finding and securing these partnerships is no easy task. After all, who has a clear overview of the relevant, credible, and promising startups in their industry? This is where professional innovation managers and startup scouts come into play, identifying the right partners through a Startup Scouting process.
Definition: What is Startup Scouting?
Startup Scouting is a targeted process of identifying and evaluating innovative, high-growth startups. The primary goal is usually to match companies with startups for a specific internal need or an innovation partnership. However, Startup Scouting can also be conducted to gain an overview of new strategies, technologies, or trends in certain industries and to monitor potential competitors. In both cases, the ultimate aim is to enhance one’s competitive position and minimize risks when working with startups.
Who can conduct Startup Scouting?
Larger companies typically have dedicated innovation departments, where Startup Scouting is one of their key tasks. Additionally, there are specialized service providers like Ambivation that focus on Startup Scouting. These providers can take over the entire scouting process if in-house expertise is unavailable. Alternatively, external startup scouts can support innovation departments during particularly busy periods or when highly specific solutions are sought, for instance, in complex international contexts.
How Does the Startup Scouting Process Work?
Each startup scouting process is slightly different, particularly considering the various objectives and requirements outlined above. However, the following steps are typically included:
Kick-off Workshop for Needs Assessment and Goal Definition
A startup scouting process can only succeed if the goals and expectations are clearly defined. This includes financial parameters, the desired type of cooperation, and specific criteria that relevant startups must meet. These could involve technical aspects or questions such as whether only regional startups or global partners should be identified. A joint discussion between the startup scout and the relevant department is always recommended for this step. This allows both decision-makers and scouts to ask questions and clarify details.
Initial Startup Screening by an Experienced Startup Scout
In the next step, the startup scout identifies all startups that align thematically and technologically with the company’s needs. This often results in a list of 50 to 100 startups. At Ambivation, this list is provided to the respective company in the form of a database, though decision-makers are not required to go through it themselves. Instead, the startup scout conducts a deeper review of the startups:
- How mature are the respective technologies or solutions?
- What is the company’s development stage?
- What expertise do the founders bring?
- Has the quality of the startup’s services or products been validated through pilot projects or awards?
- Are there already investors, and if so, who are they?
Detailed Evaluation and Analysis of Selected Startups
After consulting with the company, the startup scout performs a detailed analysis of the most promising startups from the initial screening, typically around ten companies. The results are presented using tags or tables, providing decision-makers with a clear overview and comparison options. For our scouting software Coopsaas, the process looks as follows:
Decision on Potential Cooperation Partners
After analyzing the startups and, if necessary, receiving additional consultation from the startup scout, the company selects three to five preferred candidates. These startups are then contacted and invited to a personal meeting. The startup scout handles communication and organizes the meeting.
Personal Meetings with Innovation Partners
Successful and attractive startups often have the luxury of choosing their collaboration partners. Decision-makers in established companies should expect that startup founders have their own expectations and requirements for potential collaborations. Not all founders may be interested in working together, particularly when it involves sharing valuable know-how or selling company shares. For startups from other countries, language or cultural barriers might also come into play. Here, startup scouts act as intermediaries, ensuring that a trusting relationship is established.
Building rapport during the meeting process is crucial. Beyond formal negotiations at the conference table, informal interactions, such as a shared meal or casual conversations, can significantly contribute to fostering mutual trust and understanding.
Initiating Cooperation
If desired, the startup scouting process can conclude after the personal meetings, leaving the department and startup to manage the next steps independently. Alternatively, companies can continue to seek support from an external startup scout.
Once a startup and an established company agree to collaborate, a joint workshop can help clarify mutual expectations, contributions, and responsibilities. These agreements are then incorporated into the cooperation contract. To define the key points of a cooperation agreement or proposal, the Co-Canvas tool can be used. Similar to the Business Model Canvas for business models, the Co-Canvas outlines both partners’ expectations for the collaboration on a single page.
Support in Implementing Innovation Projects
Startups and established companies often differ significantly in their communication cultures. Even with well-matched partners, challenges can arise for both sides. A startup scout acts as a neutral intermediary to ensure that all processes run as smoothly as possible from the outset.
What Are the Advantages of Professional Startup Scouting?
You can conduct startup scouting internally, hire an external scout, or opt for a hybrid solution. For instance, simple scouting tasks can be handled in-house, while complex topics or simultaneous scouting efforts can be supported by providers like Ambivation.
Structure and Methodology
It’s crucial to approach the process systematically and methodically. Relying solely on Google searches is insufficient, as search rankings do not indicate whether a startup’s solution is the right fit for your needs. Without professional tools, you may find isolated solutions but lack a comprehensive overview of the best or most suitable partners.
Expert startup scouts work with advanced software tools and licensed databases, ensuring data-driven, sustainable decisions for your company.
Saving Time and Money
An external scouting service is often much more cost-effective than having your employees, without prior expertise, learn the process themselves. This allows you to progress faster, enter new markets efficiently, and avoid risks or costly missteps. Choosing the wrong partner due to superficial scouting can result in wasted six-figure budgets, as the solution may not work as hoped or better partners may emerge later.
Access to Regional and International Startups
While decision-makers may already be aware of key regional startups, identifying international partners can be more challenging. Professional scouting provides access to the most interesting and relevant startups globally.
Methodical Screening
Avoid being swayed by big promises, awards, or sleek websites. Experienced startup scouts use a variety of tools and methods to identify the most relevant players and pinpoint the startups that best fit your goals.
Industry Knowledge and Expertise
Startup scouts bridge the gap between established companies and the startup ecosystem. They are experts in startups and adept at quickly adapting to new industries, technologies, and topics.
Risk Minimization
A professional scouting process examines the maturity of a technology, the founders’ expertise, and potential proofs of concept for collaboration. Experienced scouts have completed this process numerous times and know what’s essential for identifying and evaluating startups.
Objectivity
External scouts bring impartiality, free from internal politics or biases. They help broaden the spectrum of potential collaboration opportunities, allowing decision-makers to make informed choices. Ultimately, the final decision always rests with the company.
Facilitating Collaboration
Startups and established companies often operate differently, with distinct strengths and weaknesses. Startups are typically agile and expect informal, equal communication, whereas established companies often have hierarchical structures and lengthy decision-making processes. A startup scout acts as a mediator to ensure smooth collaboration. Tools like Ambivation’s Co-Canvas help visualize key aspects of the partnership, such as needs, solutions, responsibilities, and timelines.
How Does Ambivation Support Startup Scouting?
Complete Startup Scouting Services
We can manage the entire scouting process described above and provide ongoing advisory support during the collaboration.
Support for Complex or High-Volume Scouting
If you already have an innovation team or startup scouts and need assistance during peak periods or with challenging cases, we’re here to help!
Access to Tools and Databases
We provide access to databases like Crunchbase, Tracxn, and Pitchbook. Additionally, we offer Coopsaas, our proprietary scouting software, and Co-Canvas for visualizing cooperation details. We also advise on selecting suitable tools for project and innovation management.
Startup Tours
We organize startup tours domestically and internationally, giving you exclusive insights into the startup world and opportunities to meet potential partners.
Startup Scouting Masterclass
Our masterclass focuses on theories and practices related to startup scouting, collaboration, and venture clienting. It includes training on database usage and insights into specific innovation topics, making it ideal for participants with prior experience in startup scouting.
Customized Consulting and Knowledge Transfer
With years of expertise as startup scouts and advisors, we offer tailored consulting to support your cooperation projects.
Extensive Network
Our activities have built a vast online and offline network of founders and innovation managers, allowing us to connect you with relevant contacts when needed.
How to Start with Ambivation?
If you don’t have an internal startup scout, reach out to us for a personal consultation. We’ll discuss your goals and determine how we can best assist you. If you are a scout facing a high volume of complex scouting tasks, we can manage individual scoutings to help you achieve timely results.
About Ambivation
Ambivation connects innovative companies and startups for cooperation and innovation partnerships. As an innovation consultancy and matchmaker, Ambivation promotes cooperation between established companies and startups within the framework of concrete customer, supplier and research partnerships. We support companies in the identification of needs, startup identification, startup evaluation and cooperation initiation with startups. Formats such as research on relevant startups, startup monitoring, strategic cooperation consulting or event formats such as startup tours serve this purpose. Our monthly newsletter also provides information on current examples of cooperation and events.
