Scott Pollack@slpollack

http://www.startofthedeal.com

David + Goliath: A Love Story

How Startups Can Partner with Big Companies

2

Celebrity Marriages = Vanity Partnerships

Vanity Partnerships:

• Doing deals > Building your business

• Getting into market > Time spent in market

• Press release > Partnership agreement

The Result: Wasted resources. Burnt bridges. Lost focus. Startup Death.

3

The Path to Successful Partnerships

A successful partnership requires that all sides feel their contributions are sufficiently

rewarded by the value received.

$0 Partner Big Co.

$$$

Create a product

Enhance our brand

Cut costs

Reach new customers

Enter a new market

The Startup Perspective:

4

How to Partner with a Big Co.

Big Companies have plenty of options to create growth.

$$$

Build

Buy

PartnerThem

YouAh, Screw It

M&A

Vendor

In-house

Outsource

$$$

Create a product

Enhance our brand

Cut costs

Reach new customers

Enter a new market

The Big Co. Perspective:

5

How to Partner with a Big Co.

In order to partner, you must provide more value than

every other option.

Or waste a lot of time trying.

$$$

Build

Buy

Partner

Them

YouAh, Screw It

M&A

Vendor

In-house

Outsource

$$$

Create a product

Enhance our brand

Cut costs

Reach new customers

Enter a new market

6

How to Partner with a Big Co.

“Partnership is only one potential avenue for achieving growth. In order to partner with your startup, you must provide more value than every other option to pursue an opportunity.”

7

The Path to Successful Partnerships

A successful partnership requires that all sides feel their contributions are sufficiently rewarded by the

value received.

Communicating Value

How do you find your way through an organization to

show them the potential for your

partnership?

2

8

The Path to Successful Partnerships

A successful partnership requires that all sides feel their contributions are sufficiently rewarded by the

value received.

Having Value

What value can I create for my company and

another company?

Communicating Value

How do you find your way through an organization to

show them the potential for your

partnership?

1 2

9

The Path to Successful Partnerships

A successful partnership requires that all sides feel their contributions are sufficiently rewarded by the

value received.

Having Value

What value can I create for my company and

another company?

Communicating Value

How do you find your way through an organization to

show them the potential for your

partnership?

Delivering Value

Can you deliver on the promise of the value in order

to keep a deal alive?

1 2 3

10

The Path to Successful Partnerships

A successful partnership requires that all sides feel their contributions are sufficiently rewarded by the

value received.

Having Value

What value can I create for my company and

another company?

Communicating Value

How do you find your way through an organization to

show them the potential for your

partnership?

Delivering Value

Can you deliver on the promise of the value in order

to keep a deal alive?

What’s in it for

[you/them]?

Who cares? Is it still worth it?

1 2 3

11

Phase 1: Having Value

A successful partnership requires that all sides feel their contributions are sufficiently rewarded by the

value received.

Having Value

What value can I create for my company and

another company?

What’s In It For You?

• Economic Value • Brand Value• Option Value• Product Value

What’s In It For Them?

• Economic Value • Brand Value• Option Value• Product Value

What is the Value Received?

What value does your company need?Is partnership the best way to create

that value?

12

Phase 2: Communicating the Value

Communicating Value

How do you find your way through an organization to

show them the potential for your

partnership?

Who Cares?

Perceived Value =

A successful partnership requires that all sides feel their contributions are sufficiently rewarded by the

value received.

• What companies need the value you can create?

• Where in the organization does your value resonate?

• Who is motivated to advocate for you?

• How can you establish those relationships now?

Organizational ValueIndividual Value+

13

Phase 3: Delivering Value

Delivering Value

Can you deliver on the promise of the value in order

to keep a deal alive?

Is It Still Worth It?

• Are we getting what was expected?

• Have our priorities changed?

• Are we growing together or apart?

A successful partnership requires that all sides feel their contributions are sufficiently rewarded by the

value received.