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Digital Outlaws presents:
From 0 to 1 and 100
101 of Successful Corporate Startup
Relationships
2
What is a buggy whip?
3
Source: Other People’s Money
Startups in the
corporate context
$ 75.000
$ 50 mio
$ 400 mio
$ 404 mio
$ 102 mio
4
Cheap buys: all we are looking for
But most fail
5
6
But Why?
Source: Trailer “Something Ventured”
7
Startups ≠ Companies
Doing things not written in the
business plan
Question 1: How to work with an unstable isotope?
Lot of things
missing
Strange, unappealing people
8
Startup DNA
• Raising money to live the next
18 month
• Learning (& failing) fast to
iterate product cycles
• Building up customer base to
get basis covered
• Not projects but product
• High -> Low -> No touch product
9
10
Mindset
11
Corporate World in the
Startup Context
(not going to be fun)
12
Philosophy
McKinsey “New Horizon Model”:
• Defend core business
• Build up new business areas
• Create “realizable”
opportunities
Do you want to have jam
on it, too?
• Relationship triangle
• Process time
• Shopping addiction &
compulsive checking
• Narcissism
• Risk prophets
• Conflict (read: disruption)
handling
• Silo cultivation
13
Culture
Corporate Immune System
14
Rules: Destruction
of creativity & time
• Time of processes
• Procurement “guidelines”
• Group agreements
• Reporting structures
• Budget processes
• Contract negotiations
• Payment terms
• …
15
Leads to: Sideways
seldom forward
• Preserving Status Quo
• Thinking focus too narrow
• Taking risks (not core) invites
penalty
• Budget allocated to narrow
• No time given to evolve
• No room given to evolve
• NIH Syndrome
Alternative needed
16
Mindset
Question 2: Why work with a corporate? 17
Corporates have a twisted personality
18
And if, How?
19
Be a dealer
(not ethical but effective)
20
Paramount theme: ‘We will make you’
21
Level 1: Invitation
• Invest in scouting
• Have the top brass meet with
the founders
• Learn about & understand:
a) Product (don’t screw w/ it)
b) Strategy
c) (financial) Position
• Explain your “pain” i.e interest
• Open communication channel
Level 2: Start a
relationship
• Fund a general SWAT budget
at C-Level
• “Exception is the rule” (do not
apply standard processes)
• Initiate one/two small projects
• Do not linger – act as fast as
the startup
• Show appreciation for good
results
22
It’s about gaining trust
23
Level 3: Immerse
• Initiate a big project – testing
the ground
• Address NIH syndrome in
advance
• If successful:
• Start negotiating a long
term service agreement
• Build a “clutch” at corporate
• Invest people at clutch w/
power -> Chief of Staff
• Jour Fixe
24
Level 4: Invest
• Staged!! This is not a “all you
can grab” event
• Yes, it will get pricier, but in a
good way
• Think about alternatives like
SAFE to make it easier for SU
• Lend strength to disrupt
markets
• Build a fund not traced to you
Make it easy to make a dent
25
Level 5: Tactic &
Strategy
• Grow it
• Unfair advantage has to be
build up
• Less corporate
• What’s App, Instagram,
Android
THEN:
• Majority stakeholdership?
• Integrated vs. sidetracked?
• …
26
The electric light did not come
from the continuous improvement
of candles
~Oren Harari
DIGITAL OUTLAWS™
BY SUBLIME INVESTMENTS
C/O ALEXANDER MARTEN, ESQ.
ERICH-OLLENHAUER-STRAßE 7
40595 DÜSSELDORF
am@sublime.vc
@Galil3o
http://linkd.in/1CkkDHB
http://fb.me/digital.0utlaws
http://goo.gl/GpLwD2
27

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The 101 of the corporate startup relationship

  • 1. Digital Outlaws presents: From 0 to 1 and 100 101 of Successful Corporate Startup Relationships
  • 2. 2 What is a buggy whip?
  • 4. Startups in the corporate context $ 75.000 $ 50 mio $ 400 mio $ 404 mio $ 102 mio 4 Cheap buys: all we are looking for
  • 8. Startups ≠ Companies Doing things not written in the business plan Question 1: How to work with an unstable isotope? Lot of things missing Strange, unappealing people 8
  • 9. Startup DNA • Raising money to live the next 18 month • Learning (& failing) fast to iterate product cycles • Building up customer base to get basis covered • Not projects but product • High -> Low -> No touch product 9
  • 11. 11 Corporate World in the Startup Context (not going to be fun)
  • 12. 12 Philosophy McKinsey “New Horizon Model”: • Defend core business • Build up new business areas • Create “realizable” opportunities Do you want to have jam on it, too?
  • 13. • Relationship triangle • Process time • Shopping addiction & compulsive checking • Narcissism • Risk prophets • Conflict (read: disruption) handling • Silo cultivation 13 Culture Corporate Immune System
  • 14. 14 Rules: Destruction of creativity & time • Time of processes • Procurement “guidelines” • Group agreements • Reporting structures • Budget processes • Contract negotiations • Payment terms • …
  • 15. 15 Leads to: Sideways seldom forward • Preserving Status Quo • Thinking focus too narrow • Taking risks (not core) invites penalty • Budget allocated to narrow • No time given to evolve • No room given to evolve • NIH Syndrome Alternative needed
  • 17. Question 2: Why work with a corporate? 17 Corporates have a twisted personality
  • 19. 19 Be a dealer (not ethical but effective)
  • 20. 20 Paramount theme: ‘We will make you’
  • 21. 21 Level 1: Invitation • Invest in scouting • Have the top brass meet with the founders • Learn about & understand: a) Product (don’t screw w/ it) b) Strategy c) (financial) Position • Explain your “pain” i.e interest • Open communication channel
  • 22. Level 2: Start a relationship • Fund a general SWAT budget at C-Level • “Exception is the rule” (do not apply standard processes) • Initiate one/two small projects • Do not linger – act as fast as the startup • Show appreciation for good results 22 It’s about gaining trust
  • 23. 23 Level 3: Immerse • Initiate a big project – testing the ground • Address NIH syndrome in advance • If successful: • Start negotiating a long term service agreement • Build a “clutch” at corporate • Invest people at clutch w/ power -> Chief of Staff • Jour Fixe
  • 24. 24 Level 4: Invest • Staged!! This is not a “all you can grab” event • Yes, it will get pricier, but in a good way • Think about alternatives like SAFE to make it easier for SU • Lend strength to disrupt markets • Build a fund not traced to you Make it easy to make a dent
  • 25. 25 Level 5: Tactic & Strategy • Grow it • Unfair advantage has to be build up • Less corporate • What’s App, Instagram, Android THEN: • Majority stakeholdership? • Integrated vs. sidetracked? • …
  • 26. 26 The electric light did not come from the continuous improvement of candles ~Oren Harari
  • 27. DIGITAL OUTLAWS™ BY SUBLIME INVESTMENTS C/O ALEXANDER MARTEN, ESQ. ERICH-OLLENHAUER-STRAßE 7 40595 DÜSSELDORF am@sublime.vc @Galil3o http://linkd.in/1CkkDHB http://fb.me/digital.0utlaws http://goo.gl/GpLwD2 27