Venturing Insights #23 - Who holds the keys?
Venturing Insights #23 - Who holds the keys?
How direct access to corporate business units makes startup partnerships work.
Previously on Open Road Ventures: In our last episode of Venturing Insights, we discovered a cool framework for corporate entrepreneurship: the Kickbox methodology. If you missed it, you can catch up here
There’s a unique energy that startup founders bring to the table, an energy that I find almost addictive.
Last week, I had the chance to absorb this energy firsthand as I led a workshop with founders from the Motor Valley Accelerator. Our session centered around corporate-startup collaboration, looking closely at both sides of the table: the startup’s point of view and the corporate’s perspective. We explored where these views align, where they clash, and how to make partnerships that work for both.
These founders are part of an acceleration program aimed at nurturing high-potential automotive ventures, and many already have significant traction, even in their early stages. This means that they already had the chance to collaborate with corporates.
Indeed, here’s one of my highlight: one founder brought up a stark reality about corporate collaboration that’s still ringing in my ears.
He noticed that projects take off faster when his startup team works directly with a corporate’s technical business unit rather than a transversal innovation team.
Why? Because business units know exactly where the problem lies. And unlike innovation managers, they’re motivated to solve it quickly, often without the “red tape” that innovation teams face when coordinating between departments.
Turns out, he’s onto something big. Research backs him up, with studies showing that satisfaction rates in collaborations shoot up by 93% when startups work with dedicated teams that get hands-on. When corporate decision-makers can interact with startups on the ground level, we see faster results and, most importantly, solutions that stick.
So, here’s the question: How often are corporate leaders bringing business units into the conversation with startups? For true innovation that moves the needle, it might be time to rethink who holds the keys to partnership success.
Closing the gap: bringing business units to the frontline
So, how do we bridge the gap between startup solutions and corporate business units? It starts by reimagining the corporate role in these partnerships. Innovation teams play a valuable role in scouting and initiating connections, but to truly unlock the potential of startup solutions, it’s essential to involve technical business units from the get-go.
Directly engaging these units has several benefits:
1. Faster problem identification and solutions: Business units bring critical, first-hand insights to the table. They can pinpoint where the startup’s technology will work best and advocate for its immediate application. This early-stage alignment is invaluable, especially since many innovation teams face internal pressures to deliver “headline” innovations rather than practical, process-driven improvements .
2. Reduced bureaucratic delays: Working with business units can speed up implementation. Innovation teams often need to route approvals through multiple layers, but a business unit familiar with the issue may skip some of this red tape to test and refine solutions quickly. Studies show this approach creates higher satisfaction and greater project success because it aligns with the needs of those directly impacted
3. Better alignment with corporate objectives: When a startup works with those who understand the operational impact, it creates a clearer value proposition for the corporate leadership. McKinsey’s research suggests that aligning startup contributions with business unit goals significantly improves the chances of integration and long-term partnership success .
For startups, knowing this can be the difference between a stagnant proof-of-concept and a partnership that grows into a long-term, impactful venture. So as corporate leaders, it’s worth considering: how often are we putting our business units in direct conversation with startup innovators?
So, what’s the point of Innovation Teams?
The founder’s comment raises an important question: What role do Innovation Managers and Open Innovation teams really play if direct access to business units leads to faster progress?
Think of Innovation Teams as scouts, connectors, and methodologists, each role essential to the success of corporate-startup collaborations:
• Scouts: They’re constantly looking beyond the corporate bubble, identifying cutting-edge ideas, startups, and emerging tech. Without their watchful radar, many business units wouldn’t even be aware of new solutions in their fields and would need to search while managing daily priorities.
• Connectors: Innovation Teams bridge the gap between startups and corporate departments. They connect external innovation with internal needs, allowing startups to access the right teams and stakeholders faster, while ensuring alignment with corporate strategy.
• Methodologists: They bring structure to the innovation process. Innovation Teams apply frameworks that guide startups and business units from concept to execution, making the process organized, measurable, and aligned with company goals. This structured approach keeps innovations from slipping through the cracks.
Another critical function is exploring future potential. While business units focus on immediate needs, Innovation Managers assess long-term opportunities—new technologies, models, and markets that don’t yet fit into existing goals. They’re well-suited for managing cross-functional projects, often spanning multiple departments and complex R&D initiatives .
The real magic happens when both Innovation Teams and business units collaborate. Innovation Teams act also as “translators”, helping startups navigate corporate processes while ensuring technical teams have a say from the start. It’s a balanced approach: Innovation Teams bring in and prep ideas, and business units put them into action.
See you next time and keep innovating!
Davide
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