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We Really Need Large Corporates — With the Right Motives
If you read my blog regularly, you know I’m a really big believer in revenue as one of the most important metrics for startups. And, that partnering with corporates is one of the best ways for startups to generate revenue.
Corporates, of course, are companies considered to be part of the “Fortune 500” or those on the S&P 2000 and they share a few things in common. First, they have capital. Many large corporations have more than $1B in cash on hand and they’re looking for ways to spend that cash to generate future returns or to find efficiencies in their businesses. Second, they’re in a wide array of markets. Think about Orange, one of the largest telecom companies in the world. If you began working with them tomorrow, you’d have an opportunity at international exposure almost immediately. And, they’re looking for ways to innovate. They have a business model that works for them now, but they know their current model likely won’t last forever. So, they’re consistently on the hunt for new ways to do business. Often, that means looking to startups to help fuel innovation.
Bad Motivations
When it comes down to it, though, a ton of corporates have pretty poor underlying motivations for working with founders.