Startup-Corporate Collaboration: A Startup Founder’s Perspective on Working with Corporates

Most of my entrepreneurial journey has involved developing either SME or products for consumers and corporates. Over the last few years with Dashmote, I have truly come to appreciate my relationships with corporate contacts. I have found that whether the contract be thick or thin, there is a lesson encompassed in each project. The purpose of this blog is to share the highlights and lowlights of my time spent collaborating with corporates.

Today’s world is forcing large corporations to drive innovation. The notion, “disrupt or be disrupted” is rooted in the corporate environment. To remedy the pressure for advancement, many corporations are turning to startups.

An overwhelming 82% of corporations now see interactions with startups to be “somewhat important,” and 70% of startups have successfully collaborated with a corporate at this point in time.

Collaborating with corporations is like a white-water rafting: You may get splashed in the face a few times, or perhaps even fall off the boat, but the experience can be truly rewarding if you are able to endure the ride. The thrill of corporate relationships stems from the risk involved. Although partnering with a startup offers huge potential for corporations, there is always a chance that the investment will not be recovered. With this in mind, collaborations between corporates and startups are often complicated. Corporations have conflicting concerns in the collaboration process: One is to protect the large-scale interests of their company, and the other is to invest resources in a startup’s success. The role of the startup is therefore difficult at times, as earning trust within a corporation is a demanding task. Despite the complexity of collaboration however, I have seen that startups and corporates can absolutely complement each other in the right setting.

Corporates offer a vast amount of data, distribution power, and customer networks to startups, while startups add value to corporations by building creative solutions and sidestepping long-legacy processes. Despite the advantages it presents, cooperation between corporates and startups is rarely ever seamless. With this in mind, there are a few tactics that I have found to be highly effective when working with corporates.

Connecting with Corporations

Establishing a common purpose is the best way for corporates and startups to connect. Collaboration works best when everyone is tackling the same challenge. Innovation departments are meant to cultivate innovation within a corporation, and although it is not necessarily in their job description to work with startups, innovation departments often include startups in their recipe for advancement. I recommend that startups first target the department of the end user (in our case, the marketing department) and secondly the innovation department, rather than engage in internal incubators, purchaser offices, corporate venture capital, and hackathons. Based on my experience, the most meaningful corporate relationships evolve from coming together with the end user to solve tangible problems.

Mentor relationships are another great way for startups and corporates to develop a strong connection. When it is mutually educational, collaboration is worthwhile for everyone. Dashmote’s relationship with PwC is a perfect example of this: We received valuable advice on data analytics in exchange for giving a workshop on the startup methodology of growth hacking.

Pilots are also a worthy endeavor for startups. They give corporates a quick, comprehensive explanation of how a concept works. Once companies have an idea of a startups capabilities, they can build a strategy from there. In addition, startups should not limit themselves to free pilots, as commitment fees can convey the time and attention put into a presentation.

Developing a Long-Lasting Relationship

It takes time for startups and corporates to establish solid relationships. On one hand, corporates must understand that a startup’s budget structure, decision chain, and capacity are quite limited. On the other hand, startups must realize that corporates don’t work with the same flexibility, and it may take months to get everyone in the same room for a quick 30 minute meeting. A shotgun approach is often the best way for startups to distribute information to corporates. That is, startups must take a dynamic, responsive approach in order to accommodate the corporate workflow.

Although it may involve late nights and extra shots of espresso, startups should aim to overachieve on corporate projects. Producing exceptional results helps build valuable business relationships. A startup’s prominence within the corporate community not only leads to second-time collaborations, but also opens the door to stakeholders of various business units. Especially with the professional world growing increasingly more interconnected, personal relationships are vital in boosting credibility in future business endeavors.

In addition, it is essential that startups have a clearly-formatted documentation method in order to spread and update their community. This allows followers to come along on the startup’s journey. Onlookers will further invest themselves in a startups endeavors if they are aware of recent happenings. Without active social media channels, startups can fall irrelevant within the outside world. 

Collaboration in Action

Scaling the project is one of the most important steps in the collaboration process. The key to scaling is figuring out the balance between the KPI/deliverables and the pricing. Having direct conversations is essential in establishing a transparent relationship between companies. Startups shouldn’t be afraid to set the KPI, as this shows professionality from the startup. Moreover, collaboration can be scaled quicker if corporates have a proposed KPI to contemplate.

Regardless of how well-planned the collaboration process is, there will always be cultural clashes between corporates and startups. It is important that both sides attempt to understand the perspective of the other. It’s not that either business model is better, it’s that they’re just different. Startups can reduce strife by recognizing the way bureaucracy functions before engaging in corporate business. Corporate collaborations often involve unfortunate realities such as slow payment terms and an abundance of time-consuming meetings. Proactivity is the best way to combat these obstacles, allocating the adequate time and resources to the collaboration process. 

Conclusion

Although collaboration may seem hectic at times, startups can find peace of mind in the inherent benefits of working with corporates. Engaging with corporates allows startups to bring their creativity into the limelight and validate new ideas with actual clients. Indeed, the cultural differences are taxing to deal with times, but these cultural differences are also the reason startups and corporates balance each other so seamlessly. From collecting insights for TUI to inspiring new products with Phillips, it is clear to me that startups and corporates have a lot to offer each other. After all, it isn’t so bad wearing sports coats to meetings every once in awhile...

NYC: Big Buildings, Big Dreams, & Entrepreneurial Vibes

 While reading a recent article in The Atlantic,  New York is said to have transitioned from a place that  had virtually no high-tech startups to one that hosts a sector attracting more than $3 billion per year!

So, when and why exactly, did the startup world decide to book their flights from Silicon Valley to New York? There is a quote that goes, “something’s always happening here. If you’re bored in New York, it’s your own fault.” As I learned first handedly on my trip; the implication of The Big Apple being a lively, innovative, and extraordinarily unique city of its kind has been around for far longer than its recent explosive growth of startup sectors. With other huge and competitive cities with foundations for startups like San Francisco, Los Angeles, Austin and Miami; it’s not too surprising that NYC landed the 6th spot for Forbes’ Top 25 Hottest Cities for Startups. With venture capital funding for tech companies exploding by 240 percent over a 10 year period and the city of dreams becoming the new hot hub for startups--it’s clear why Dashmote’s growth market includes and focuses on New York. From connecting and networking with people of various backgrounds, to closing our first deals--it’s truly difficult to say that this city hasn’t captured my heart on a business and personal level. There are three specific elements I’ve noticed, that make NYC stand out as a startup hub and entrepreneurial haven.

The Velocity & The Speed

     New York’s notoriously fast paced, “city that never sleeps”  lifestyle is synonymous with the the fast thinking and movement required when first building a startup. Even when coming from a busy and constantly moving city like Amsterdam--I found it much easier to meet people and schedule meetings in NYC. I was able to schedule 50 meetings in one week while in New York, while the same number would typically require two weeks in Europe or Asia!  People were also much more inclined to not just hear, but actually listen to your story, your ideas, and offer their own advice or input. Noticeably, this mentality of mentoring was much more prevalent in NYC, than in regards to the European startup sphere. However, this also means that your competitor may have the same advantage. By perfectly suiting the startup criteria of “fall fast and move fast”, The Big Apple has transitioned from epicenter of financial disaster to the focal point and home of various startup successes such as Foursquare, Etsy, and Tumblr.

Corporate Startup Engagement

      Along with my own experience with Dashmote, corporate startup engagement is undeniably critical. This is relevant for most startups with the intention of scaling. Since people are more receptive and open to listening to your story and ideas, the question of how easily you can sell your product to a client becomes more defined. When talking A.I. or other technology, explaining your business as the “Uber for X, or Skyscanner for Y”; people are able to comprehend and relate to your product relatively quicker in NYC--which also allows them to shoot it down faster, as well.

Big corporations see many startups as an opportunity to partner, find new innovative ideas, invest or even listen to potentially successful and/or experienced entrepreneurs. As David Kidder, CEO of Bionic, says: it’s either disrupt or be disrupted. This is in regards to corporations needing organic growth--therefore they engage with the startups more in order to potentially make their companies profit on more innovative and creative products. The significance of the engagement being more prevalent, is that both, large corporations and startups would benefit from the friendship. They each bring two distinct and integral skills needed to the business sector. Startups are excellent at producing and detecting the latest and most innovative products, sparking the innovation. While larger companies lack that innovation--yet, are successful at scaling proof of concepts. This engagement and teamwork from both ends deliver a much higher success rate--thus, startups wanting to be based in an environment with these advantages.

The Dharma & The Energy

  “San Francisco is a boring fucking city. In New York, you don’t have to entertain people because the city entertains people," eloquently put by Mario Schlosser, CEO of Oscar--a healthcare startup in SoHo valued at nearly $3 billion. It’s truly difficult to compare any other city to New York. With our own Dashmote office located near the very center of one the most architecturally beautiful and romanticized cities in Europe--it’s still impossible to compare the level of glamour to that of NYC. It was, in fact, the gateway to the United States, and its popular cultural hub remains part of the “American dream”. The energy within the city vibrates with lights, traffic, millions of people, ambition, movement, culture, innovation, and drive. People are excited about what they do, they aren’t shy about loving their city, and don’t remain quiet about their ambition. With the buzzing enthusiasm, you immediately feel an inclination to be just as passionate and extroverted as them. As the famous saying goes: “surround yourself with people who have dreams, desire, and ambition; they’ll help you push for, and realize your own.” The dharma in The Big Apple uplifts you to have a greater purpose in life, encourages you to announce it and take pride in your idea, and allows people to call you on it--this innovative culture and drive only contribute greater to this buzzing city’s startup centered success.

In regards to New York City: “No one lives here because they live here: Everyone lives here because they want to be here.”

Brothers by chance, co-founders by choice

How co-founding a startup with your sibling can turn out to be either the best, or worst, decision you ever make.

Since starting Dashmote with my brother Dennis in 2015, one of the most common confusions we face every so often happens when meeting new people. If we meet new people at networking events, startup conventions, or other business related functions, people are often confused by the fact that we look so similar, have the same last name, and are both founders of Dashmote - often ending up in the assumption that we are the same person. Though this can be a funny way to break the ice and to introduce ourselves in a more interesting way, it’s just one of the many side effects that we didn’t think of when embarking on the adventure that is Dashmote 2 years ago.

Working alongside any sibling, in any way, can more quickly lead to arguments and scuffles, or belly laughs and hugs than with a non-relative - which is why embarking on a business venture with them can turn out to be a horrible or fantastic idea, depending on your relationship. However, with success stories of Rocket Internet (founded by Alexander, Olivier, and Marc Samwer), Stripe (founded by Patrick and John Collison), and many more, we see that a sibling duo can turn out to be one of the secrets to success in launching your startup.

Once you decide however, or perhaps give in, to the idea that your sibling will be your fellow co-founder, you will be immediately faced with unique challenges as well as benefits that come up in day to day startup related activities that stem from the deepness of the relationship and lack of barriers that come with growing up together.

You know each other's’ strengths and weaknesses.

Having grown up together, Dennis and I know each other better than we know ourselves sometimes. Dennis understands that I have strengths related to finance and business development relationships, and I understand that when it comes to making executive decisions for the good of the company, leading people, and keeping up moral, Dennis shines through. Using this knowledge of one another, we can easily divide day to day tasks, and ask each other for help quickly because of our deeper understanding. Not only hard skills, but also soft skills such as people skills and stories from experiences are much more accessible and we can apply each other's skills as if they are our own to different situations.

Arguments on a whole other level, but can always be solved

Growing up, sibling rivalry could get fierce at times - especially when it came to playing games against each other. We didn’t know it then, but this experience turned out to be an early test drive period for us in finding out how we could manage our arguments as best as possible but still work together and solve the issue at the end of the day. Which is why we still have arguments that are reminiscent of our youth, but we are always able to put our differences aside and move on quickly to the solution since we can express ourselves fully without the barrier which is usually between two unrelated individuals.

Celebrating the milestones together

Normally after you have completed a sale, or won an award, you can’t wait to share the experience with your friends and family - even if they may not completely understand the struggle and the meaning this has for you and your company. Because I work daily alongside my brother, however, every small milestone and victory is thoroughly celebrated and appreciated by each other in a special way - because they were right alongside of you. I remember one particular event where I won my first pitch competition on behalf of Dashmote. This was the first victory I felt I could share on a level with my team but also with my brother - who saw the struggle and growth, and encouraged me along the way.

Mixing family life and business life

Having a sibling who works alongside of you in your company provides an outlet for you 24/7 to talk about virtually any aspect of your life. This is definitely a positive aspect, and a bit of a luxury; as you can always discuss with them what is going on in your head regarding business out of the office, and what is going on in your life inside the office. Two brains are better than one and being able to brainstorm your ideas with that person at any point possible leads to better ideas generated and more communication.

Also as another positive - it’s easier to explain to family what is going on with the company, since only one of your has to do the talking on behalf of both of you. This comes quite in handy at the family dinners with the always fun “how's everything going?” question.

You’ve always got eachothers’ backs - that sibling bond

I remember always having a sense that my brother’s always got my back, and my best interest at heart - never had to worry about an hidden agenda. When someone puts you down, or picks on you, you know your sibling will say “Hey- no one can do that to my brother except me!”

During our time at Startup Bootcamp (Accelerator program), I started training my pitch and received the feedback that I was terrible, and it wasn’t really possible to get any better than what I was able to do. When my brother heard that he dedicated time and patience to helping me train so that I could prove them all wrong. In the end, because of his help and my motivation, I was able to deliver one of the best pitches in front of 500 people during Demo Day - a milestone I definitely wouldn’t have been able to reach without his ongoing support.

Here are some final tips I have for you, in making your startup work with a sibling as your co-founder:

• Only consider it if you have already have a healthy connection with each other - this means arguments and fights may occur - but you know how to get past them
• Develop a systematic process to avoid conflict - like carving out separate areas where each sibling is in charge
• Always include non-family members with special expertise in top-level decision making - we at Dashmote have a great third co-founder, Matthaeus Shreder, who is always able to balance our decision making
• Always keep in mind that at the end of the day there is no one that can replace your sibling, so respect each other and know that no argument is stronger than your bond

I decided to write this blogpost in order to share my personal experience of how I continue to manage working successfully alongside my brother, and ceo & co-founder, Dennis at our startup Dashmote, and to share with you the good the bad and the ugly that comes with this. I hope that with this post it will help you in making the decision to see if it’s right for you - to enlist the help of your sibling in your new venture.