Startup Relationship Management: Why? What?
Established companies have come to realize that startups’ technologies and solutions make new products and services possible. Whether it is through product procurement -sometimes also known as venture clienting or possibly financial stakes or takeovers, corporate-startup collaboration is on the rise.
A growing proportion of companies seek flexible partnerships with startups in which both sides take a risk and share in the rewards. Rather than investing millions of Euros on an acquisition that doesn’t fit with the business in the long-term, partnerships in the Euro 20K- 50K range are a better way to go to test the waters first.
Early-stage contacts with startups and ”open doors” have thus become pivotal. Companies even brag about it and award each other prizes for being a top ”startup-friendly” corporate. Seemingly, startup centricity has become one of the new pillars for corporates in search of a competitive edge.
The challenge in startup collaboration is that the two types of businesses live mainly in two different worlds. So, if corporations and startups can learn from one another, how do you effectively bring them together for a greater good?
It has given rise to the notion of Startup Relationship Management (SRM). SRM is a methodology for managing all of your company’s relationships with startups. The goal is simple: Faster buy-in and decision-making, better-quality startup recruitment, and better and faster innovation outcomes.
Scoutely SRM – to be released in October, gives everyone in the company – from marketing, business development, innovation, R&D, purchasing, legal to finance a systemic way to manage interactions with startups. It lets you store contact information, identify collaboration opportunities, record decisions and conversation outcomes, and drive collaboration projects, all from one central location.
As SRM continues to evolve, it will create sweeping changes in how established companies and startups team-up. The outlook is promising: True win-win relationships in which both sides are equally committed to each other’s success.