1. MIT Orbit Knowledgebase
  2. Corporate Entrepreneurship
  3. Innovation Enablement in organizations

When might it make sense for an organization to work with startups?

Elaine Chen

If the company’s primary problem is that it has become inward looking and does not have enough external connectivity, and it lacks the technical expertise and talent to explore new areas, then working with startups definitely makes sense.

The collaboration can take many forms, from standing up a corporate venture capital fund to invest in startups, to partnering with the startup as its first customer, to actually acquiring the startup to build a new business line with excellent growth potential. 

We have seen this model in many companies with CVC practices, such as Siemens and its investment portfolio in industrial automation startups, Procter and Gamble and its calls for startups to solve challenges, and Teradyne in its acquisition of robotics companies to build a new growth business.

Articles in this section

Was this article helpful?
0 out of 0 found this helpful

Comments

0 comments

Please sign in to leave a comment.

This website and all posts and content are intended for educational purposes only and for no other purposes including without limitation commercial purposes. Any other use must give proper attribution to the Martin Trust Center and is subject to certain legal rights contained in our license and terms of use. See full legal disclaimer HERE .
The content in this knowledgebase is subject to a non-exclusive license with share-alike restrictions and the terms of use of this site – which is available for your review HERE .

Have more questions?
Submit a request
Share it, if you like it.