Joan Riera
Active Development
[Last Edited]  August 31, 2018

The symbiosis between large corporations and startups can no longer go unnoticed. While some corporations remain iffy when it comes to entering into partnerships with startups, some have become more open to it. Albeit small, startups have become a major force to be reckoned with: they disrupt traditional business models and boost the pace of change.

Differences and Similarities


It is a known secret that these corporations and startups operate differently. They have different languages, speed, and purpose. Startups tend to break the norm by creating unique business models and technologies while corporations are more into sticking to the traditional models because this serves as their protection. Corporations hire high-ranking officials who want stability while startups offer free-spirited individuals who are willing to explore despite the uncertainties.

Startups, however, lack offices, budget, or even the credibility to land big projects. This is where the corporations come in. They can help the startup speed up their growth, partner with experts in the industry, and open doors to a larger customer base. They can help the startups test whether their inventions or products are good or not, and they can help with branding, marketing, and public relations.


Corporations, on the other hand, need the independence, speed, and flexibility that startups have. This is the reason why we see more corporations invest in and enter into partnerships with startups.

A Worthy Investment

“If you can’t beat them, join them” the old saying goes and this is how some corporations are dealing with startups. Instead of seeing them as a threat, they take notice of how these companies are innovative and quick to adjust to the business velocity needed today so they choose to invest in them.  This investment hits two birds with one stone: it gives startups the space they need to scale, grow and develop, allowing corporations to maintain their spot in the ecosystem of innovation. The return these corporations get for investing on startups is more than just finances, they are also able to level up their entrepreneurial mindset and the strategic value that comes with it.

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The Benefits of Partnership


This corporate venturing allows corporations to remain updated with what is happening on the ground. The partnership that startups have with these corporations also allow the latter to take a closer look at what is happening in the company. What does the situation look like? What would be the best way to use the organizational resources and products available? How can they add value to what the startup company is doing? The partnership allows corporations to answer these questions.

Another benefit that both parties can have from the partnership is momentum and speed. These days, the environment is ever changing and it’s crucial that companies can keep up. They need to have the capacity to tackle specific areas of interest or problem areas which is something that startups are used to.


Startups can also lead corporations to possible partnerships with other startups. It is best if accelerator programs come into play during these times so corporations can find these startups before the competition does. The accelerator program will bring the startup within the corporation’s radar, creating a space for the former to grow, and the latter to enter into a fruitful partnership. It’s also easier for both parties to understand how they can best support each other, which is the foundation of a successful partnership.

Forging an early relationship with a startup will allow corporations to improve not just the deal flow, but also the connectivity in the startup ecosystem.

These days, it is crucial for companies to tap external resources to be ahead for their competitors. The good thing about partnerships between corporations and startups is that both parties learn from each other, and they help each other grow. The startup brings something fresh to the table, while the corporation brings stability.

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