Partnership Strategies for Startups and Corporations

Collaboration between Large Corporations and Startups: Overcoming Asymmetries

Challenges in Collaboration

When a large corporation partners with a start-up, the result should, in theory, be a win-win. Corporations possess resources and legitimacy that startups aspire for, while startups have agility and novel ideas that corporations value. However, vast interorganizational asymmetries make it difficult for different firms to collaborate. Disparities in size, structure, and power make it challenging for startups to connect with the right department and individuals within a large corporation.

Overcoming Asymmetries: Cohorts and Funnels

It is imperative for corporations to provide startups with viable interfaces to facilitate collaboration. In my research, I have discovered two such approaches: cohorts and funnels.

Cohorts

In a cohort, a set of startups participate in a programmatic initiative, such as an accelerator, over a pre-specified period, usually a few months. Peer engagement among the startups is often a key part of the process. While gaining entry into a cohort may be competitive, once in, participating startups generally complete the process.

Funnels

In a funnel, many fewer startups complete the process than begin it. Startups get screened out as the process unfolds, often not being aware of other startups that are participating. A funnel essentially has a built-in contest for a limited set of collaborative opportunities.

Conclusion

In conclusion, large corporations and startups face significant challenges in collaboration due to interorganizational asymmetries. By providing startups with viable interfaces, such as cohorts and funnels, corporations can facilitate collaboration and innovation. These approaches can help overcome the challenges of size, structure, and power disparities, ultimately leading to successful partnerships.

Frequently Asked Questions

• What is a cohort?
  A cohort is a group of startups that participate in a programmatic initiative, such as an accelerator, over a specified period.
• What is a funnel?
  A funnel is a process in which many startups begin, but fewer complete. Startups get screened out as the process unfolds.
• How do cohorts and funnels help in facilitating collaboration?
  Both cohorts and funnels provide a structured approach to collaboration, helping to overcome the challenges of size, structure, and power disparities between large corporations and startups.