In 2020, the question was “Can startups partner with major companies?”
Now it has changed to “What are new ways for startups to partner with major companies?”
Learn how tech partnerships have evolved, what are their benefits, and what’s next for business cooperation in Fintech.
Cooperate or die
A couple of years ago, corporations would squint down at startups and turn to long-established organizations to team up. Now, the union of the Big-and-Hefty and the Small-and-Nimble is a common thing. What has changed?
First of all, corporations have got a good look at the benefits of such a partnership. Next, startups have become more confident approaching big players and perfected their line. What has accelerated these processes is the COVID frenzy hitting the market. The pandemic has kicked tech giants into the unknown and unstable environment, which has also become the uncharted waters for enterprising out-of-the-box thinkers. If Pfizer-BioNTech cooperation is not yet a textbook example of a startup-corporate crisis clutch, then it’s almost there.
Is acquisition the only “happily ever after”?
Joining forces is mutually beneficial for both a startup and a corporate, as illustrated above. However, there’s a reason for startups to be squinting up back at tech giants. And this reason looks like a big “one way” sign in the direction of a possible acquisition.
While acquisition may actually sound like a sensible choice to both sides, there are alternatives to it. First, it’s a common thing for a partnership to stay a partnership. Next, looking for an investment is still an option.
What’s more, an acquisition doesn’t necessarily presuppose a lost identity of “the smaller one.” It could be about influence rather than control. The status of a startup may be well negotiable and vary from a temporary to a permanently stand-alone business, if the acquired tech organization chooses autonomy. However, circumstances may change, and the disbalance of power may not play in the hands of a startup.
In fact, the palette of interaction patterns may be infinite. Let’s take a look at a couple of curious cases.