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Corporate -Start-up Collaboration – Fuelling innovation and unlocking value through new age partners

Today’s business landscape is evolving at an unprecedented pace and enterprises face disruptive forces across all dimensions of the value chain. The emergence of digital technologies and rapid innovation in business models is redefining consumer behaviour and expectations. Further, the rise of digital-native, new-age competitors means enterprises need to rethink their core value proposition. As enterprises shift gears to combat these disruptive forces, innovation can no longer be sourced just internally. Enterprises have a lot to gain by seeking outside-in perspectives and tapping into their extended partner ecosystem, especially start-ups. With the start-up ecosystem in India rapidly growing, global enterprises are driving new models of engagement with start-ups and have launched highly innovative start-up outreach and partnership programs across strategic focus areas, several of which are already yielding significant success. This playbook is an outcome of the discussions from NASSCOM's four-part ER&D’s immersive series on "Corporate – Start-up Collaboration: Fuelling innovation and unlocking value through new age partnerships”. We hope that this report serves as a useful reference guide to accelerate the learning curve, design successful programs and forge outcome-oriented partnerships for both corporates and the start-ups.

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Key Findings

Corporates and start-ups collaborating more, especially post Covid

The reasons include access to new markets, verticals, and avenues for growth, access to market knowledge, access to disruptive innovation, access to talent and entrepreneurial spirit among others.

There are multiple models of collaboration

These include Individual events, Procurement, Distribution, Technology licensing, Co-development / Joint technology partnerships, Accelerator, Incubator, Corporate Venture Capital, and Joint Ventures.

Some challenges are bound to arise

These challenges may include those related to overall corporate strategy level, product strategy, operating model, culture, and legal, etc.

Corporate-start-up collaboration to be the norm in the future

With a rising number of start-up investments and acquisitions, the numbers are expected to grow and these collaborations will primarily focus on implementation.

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