Large, incumbent companies are worried about disruption. Companies need agility and speed in making fast decisions to compete. They are continuously pivoting as an organization, placing themselves in “beta mode” for continuous testing and experimenting to see what really works. They are taking steps to mitigate this risk.
They are buying start-ups, taking equity stakes in young companies (i.e., Google Ventures has stakes in 280 startups), and initiating corporate venture-capital funds. They are expanding their efforts to partner with entrepreneurs, establish incubators and accelerators, stage “shark tank” innovation contests, and launch “intrapreneurial” startups. The idea is to start small and scale up quickly.
For startups, they lack the resources to prove, market and scale their innovations. These large incumbents provide exposure, clients, capital, distribution, sales growth, marketing muscle, and financial expertise.
What Big to Small Alliance would help your company partner for success?
