Ten reasons why corporates should work with startups

01.03.2023 06:00, Morgane Ghilardi

For corporates, maintaining a competitive edge requires that they keep up with gradual and sudden shifts in the marketplace. One way for corporates to keep ahead of the curve is to work with startups. Stefan Steiner has been connecting corporates and startups for eight years at Venturelab and has seen the benefits of such partnerships firsthand. Here are Stefan's ten reasons why corporates and startups should collaborate.

As co-managing director of Venturelab, Stefan interacts with startups and corporates on a daily basis. Making sure that young companies can grow and mature is not just about good coaching, funding, or networking; it's also about creating connections with established, large-scale companies.

Startups are often more agile and adaptive than established companies, meaning they can help corporates stay ahead of the curve. "Corporates are like tankers and startups are like speedboats," Stefan explains. "You can't cross an ocean with a speedboat and maneuvering with a tanker on Lake Zurich makes no sense. But a combination of both—a conglomerate of different business units in different life cycles—leverages their strengths in the right context for the sake of long-term business success."



By collaborating with startups, corporates can benefit from their fresh perspective and creative solutions. The collaboration ensures that both the startup and corporate benefit, and has a positive economic impact, like the creation of jobs. Stefan has had many opportunities to foster partnerships between startups and corporates—and has witnessed how beneficial these relationships can be, and why. 

1. Access to new technologies and innovative solutions
Startups are often at the forefront of developing new technologies and finding creative solutions to business problems. By partnering with startups, corporates can gain access to these innovations and improve their operations.

2. Increased agility and speed
Startups are typically nimbler and more flexible than larger corporations, allowing them to respond quickly to changes in the market. Tapping into the know-how, work style, and development process of smaller, younger ventures can help corporates to stay ahead of the curve.

3. Diversification of products, services, and markets
Working with startups can provide corporates with new opportunities to explore new avenues of innovation and diversify their products, services, and markets.

4. Talent acquisition
Startups often attract talented individuals who bring fresh perspectives and ideas to the table. By partnering with startups, corporates can tap into this talent pool and bring new skills and expertise into their organization.

5. Market validation
By working with startups, corporates can gain insight into emerging trends and validate their own market strategies.

6. Cost savings
Startups often have leaner operating structures and no legacy, allowing them to deliver products and services at a lower cost. This can help corporates to reduce costs and improve their bottom line.

7. Risk mitigation
Startups can help corporates mitigate risk by testing new technologies and business models before they are widely adopted under the corporate brand name.

8. Brand enhancement
Working with startups can enhance a corporation's reputation as a forward-thinking and innovative organization.

9. Cultural integration
Startups bring fresh perspectives and ideas that can help to shake up corporate cultures and drive innovation. This can help corporates to stay relevant and competitive in an ever-changing business landscape.

10. Partnership opportunities
By working with startups, corporates can establish partnerships that can benefit them down the line because they strengthen and sustain a connection to the startup ecosystem; they can lead to new opportunities for growth and expansion in the future.
 

Thriving partnerships between Swiss startups and corporates: Three examples

The benefits of corporate-startup partnerships are clear, and many examples demonstrate the positive impact these partnerships can have. Here are some examples of successful corporate-startup partnerships in Switzerland:



These three examples involving DPD, Swisscom, and Swiss Prime Site demonstrate the value that corporate-startup partnerships can bring to corporates and the wider region. Younger companies obviously have much to gain from corporates. The guidance, funding, access to customers, and prestige that can emerge from a corporate partnership can empower entrepreneurs and innovators to unlock their full potential.

By working together, corporates and startups can leverage each other's strengths to drive innovation while assuming leading positions in their industries. As Stefan puts it: "The most important thing is to change the mindset. If corporates want to stay agile and innovative, openness to new perspectives is crucial."

Learn more about how Venturelab supports Swiss startups
For almost 20 years, Venturelab has been supporting the best Swiss startups by connecting them with corporates for POCs, investments, or collaborations. Over 90% of all Swiss startups go through one of our programs and our alumni have raised over CHF 7 billion in investments and created over 11,000 active jobs. Learn more about how we can support you build mutually beneficial partnerships with startups that drive innovation and growth.