This document discusses strategic partnerships as an alternative funding model for startups. It notes that building a business alone is difficult, with high failure rates, so seeking partnerships can help with resources like capital, exposure, knowledge and talent. A strategic technology partnership in particular can provide speed to market through product development assistance. Both startups and partners benefit, as partners gain return on investment, access to new technologies, and market expansion opportunities. The document advises startups to find partners that understand their industry and can add value, with a good cultural fit and track record.

1. Building Your Product: Alternative
Funding Models for Digital Success

2. CHRIS EBEN
Partner, The Working Group
Startup Weekend Organizer / Facilitator
@ceben
@twg

3. ABOUT TWG
Strategy
Design
Engineering
@twg

4. IN THIS PRESENTATION
What is a strategic technology partnership?
Benefits of strategic partnerships
How to pick a strategic partner
@twg

5. BUILDING A BUSINESS IS
TOUGH…
@twg

6. @twg

7. BUILDING A BUSINESS IS
TOUGH…
44% of new businesses are dead within three years,
rising to 50% by year four.
Usually due to incompetency: Nonpayment of taxes,
insufficient pricing knowledge, lack of planning, poor
record keeping.
More than 565,000 startups launch each month in the
US alone
@twg

8. FAILURE RATE
45%
47%
37%
Year 1
Year 2
Year 3
@twg

9. Speed is a critical factor in today’s market. To give
yourself the greatest chance of success, you need
to find and build a high-quality team and get your
product to market fast.
!
For many startups, who are racing to raise capital,
develop their product and scout for talent all at the
same time, the demands of trying to do it all are
simply too high.
@twg

10. Farhan Thanwar from Xtreme Labs / Pivotal Labs says:
!
“MYTH: You can build your mobile app internally as
fast as an outside firm.
REALITY: Building your app yourself will take 4x the
time.”
!
When they decide to go internal, they’re essentially
choosing to pay with time instead of money.
Why does it take startups so much longer to do it on
their own? They don’t anticipate their most critical
need: Hiring.
@twg

11. ENTER THE STRATEGIC
PARTNER….
@twg

12. @twg

13. “Our success has really been based on
partnerships from the very beginning.”
!
– Bill Gates
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14. TYPES OF STRATEGIC
PARTNERSHIPS
Joint ventures
Buying shares
Co-operation on R&D
Channel partnerships
Technology partnerships
@twg

15. THE BENEFITS
@twg

16. CAPITAL
@twg

17. @twg

18. EXPOSURE
@twg

19. @twg

20. KNOWLEDGE
@twg

21. Quote
@twg

22. RESOURCES
@twg

23. @twg

24. THE STRATEGIC
TECHNOLOGY PARTNER
@twg

25. @twg

26. A strategic technology partner supports
you whilst you validate your product
idea, find product-market fit and get
traction.
@twg

27. Support can include product strategy, design or
development as well as ongoing support and
refinement once your product hits the market.
@twg

28. The goal is to learn from them, get to market fast and
then shift to building out those capabilities within your
own team.
@twg

29. @twg

30. KEY BENEFITS OF A STRATEGIC
TECHNOLOGY PARTNERSHIP
Speed to market
Experience building products
Onboarding talent
@twg

31. SO WHAT’S IN IT FOR THEM?
@twg

32. RETURN ON INVESTMENT
@twg

33. @twg

34. ACCESS TO DISRUPTIVE
TECHNOLOGY
@twg

35. @twg

36. TAKING THEIR BUSINESS INTO A
NEW MARKET
@twg

37. @twg

38. HOW TO FIND THE RIGHT
STRATEGIC PARTNER FOR YOU
@twg

39. LOOK FOR INVESTORS THAT
UNDERSTAND YOUR SPACE AND
ADD VALUE
@twg

40. @twg

41. THE RIGHT CULTURE FIT
@twg

42. @twg

43. AND OF COURSE, A GOOD
TRACK RECORD
@twg

44. @twg

45. Finding the right technology partner is
no different than finding your
employees or co-founders.
!
You need a strong connection and there
needs to be a shared vision and belief in
what you’re building.
@twg

46. @twg

47. WANT TO LEARN MORE ABOUT GETTING TO
MARKET FAST?
Email: chris@twg.ca
Ping: @ceben
@twg

48. Building Your Product: Alternative
Funding Models for Digital Success