October 1, 2017
The line between startups and corporations used to be thicker than you could imagine. However, in recent years, large businesses and budding startups have taken to teaming up to tackle the challenges of the business world and beyond.
Techstars recently held an AMA on corporate innovation with Cory Hooyman, lead innovation manager at Target, and Ryan Broshar, managing director at Techstars running the Retail Accelerator in partnership with Target. We talked about corporate innovation and how to bring new practices and methods into your team and company. Take a look at what Cory and Ryan had to say about how startups can and should interact with large corporations.
Is there one thing that startup founders need to know to best interact with large corporations?
Ryan: The nice thing about our program in particular – especially when we’re working with a large corporation or retailer – is that there’s a massive gap between the corporations and the startups. It’s on both sides of it.
The startups, in a lot of cases, do not interact with an enterprise level corporation because they don’t speak the language. The timelines are off. A lot of the time, the professionalism of the startup needs to improve in order for them to interact with these very large organizations.
On the flip side, the corporations – and Target has done an amazing job of this – admit where they need to improve in order to interact with the startups. Not everything is going to be at the level of a huge consulting firm or a massive software company when it’s just three or four people who are iterating an idea.
When we look through the companies during the application process, we always try to project the potential of that team in their ability to work with the enterprise level companies. Just because they don’t know how to speak that language right now doesn’t mean we can’t work with that and hopefully get them to a level where they’d be able to actually interact with a 10,000 person company or 300,000 person company. That’s a big thing for us.
When we talk about team, team, team for the participants in the program, clearly, it’s about the entrepreneurial skillsets and the stuff that we identify as Techstars as an organization. But for companies that are trying to work with massive corporations, we also have to think about the potential of that team, their ability to interact with those large corporations.
Techstars sits right in the middle, between the startups on the one side of it and the corporations on the other. We plant ourselves right down the middle and try to be the middle ground between the two of them so they can hopefully speak the same language.
Cory: There are certain things that founders should watch out for. If the time is not right, the corporate yuckery can take place. They can in some way, shape, or form drown your company by not being aware of some of the things that Ryan mentioned, like the gaps.
I’ve talked to people who have, not through this program, but I’ve talked to companies locally who are on their (and I am not exaggerating this number) 28th, 29th or 30th meeting with Target. They’re still hoping for a pilot. People get passed around to various people in the organization with the intent of maybe this person might be somebody good to talk to.
Really, the only reason they keep getting passed around is because nobody has any money to do what these people are trying to accomplish. If you knew that up front, you might be like, “I’ve had my fifth meeting. I get it. I’m out. I’m going to go focus on something else.”
But because people don’t want to tell you they don’t have access to these resources, they just pass you along with the hopes that somebody else can deal with it.
Read more interviews with business minds on TechCo
This article is courtesy of Techstars, the best global ecosystem for entrepreneurs to bring new technologies to market. From inspiration to IPO, Techstars empowers the world’s most promising entrepreneurs throughout their lifelong journey by providing a global ecosystem made up of tens of thousands of community leaders, founders, mentors, investors, and corporate partners.
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