Momentum Startups closes the gap between Corporates and Startups - Small Businesses can give Corporates the edge
London— 01/12/2018 — It’s well known that startups and corporates can offer each other a lot. From talent to technology, market access to branding, startups and corporates can leverage the resources of each other to bring better services and products to consumers or better operational efficiency.
Momentum has worked with 40 B2B startups over the past two years to support them in making a successful shift from a pipeline of SME clients to large enterprise. Key to that has been the Momentum ambassador network which is made up of over 200 senior executives at some of the largest companies operating in the UK.
Key to startups success is finding product market fit before running out of cash. And the key part of that is finding the right market. In the words of Marc Andreessen, the billionaire founder of Netscape and VC Andreessen Horowitz, “In a great market -- a market with lots of real potential customers -- the market pulls the product out of the startup. The market needs to be fulfilled and the market will be fulfilled, by the first viable product that comes along. The product doesn't need to be great; it just has to basically work. And, the market doesn't care how good the team is, as long as the team can produce that viable product.”
The Momentum ambassador network gives Momentum Startups the insights to help them make a better strategic decision on which industries to target and help them shorten their sales cycles. Corporates benefit from the discovery of new technology use cases and better visibility of market shifts.
Most entrepreneurs think they have found product-market fit, well before they truly have. Some companies that have raised Series A and beyond have still struggled with finding Product-Market Fit, it’s not limited to just the smallest of startups. Conversations with some of the most senior decision-makers at potential corporate clients can prove invaluable and allow them to be in a better position to sell to corporates in the short and long term. Momentum allows Startups those conversations without having to sell, giving better insights to make strategic decisions and ultimately opening up commercial conversations. A lot of startups go into a meeting to make the sale and are given that one chance. If it doesn’t work out that is a lost lead and the relationship is lost. Building the relationship and gaining insights first is a stronger route to commercial partnerships.
So, what do corporates get from working with small businesses?
Access to market
Yes, that’s right, normally you’d associate access to the market as the benefit small businesses get from corporates, and that’s right, but corporates are also losing market share to new challengers rapidly disrupting industries.
As smaller more agile startups come to market with exciting new brands, partnerships can benefit their growth and corporates can leverage brand association and good will to capture a market they were losing. Look at Giff Gaff a spin-off startup formed out of O2. It’s given them the opportunity to capture a market, disillusioned with the telecoms industry and offer consumers a different deal and brand to consumers, one that better feels their needs as the market shifts whilst still giving their large customer network the same service and value they expect.
Move Fast
Technology is continuing to evolve at an ever-faster pace. Due to the size, processes and layers of many corporates, they cannot always move fast enough to adapt to these changes. Creating win-win partnerships with startups helps them move with the market or even the lead the direction of a market. With the help of small businesses, they can disrupt themselves before others do.
Talent
With more and more well-funded startups, some of the best talents are looking to working for young innovative fast-moving startups rather than corporates. The pay gap is closing and for corporates to gain access to that talent, the only option may be through startup partnerships and acquisitions.
Out of the box thinking
Startup culture and corporate culture can often differ vastly. Startups are more willing to think out of the box and break the rules and ask for forgiveness rather than corporates where often roles are more constricted, and departments siloed. Startup partnerships can transfer a bit of that startup mindset into the corporate culture and support innovation initiatives being pushed top down.
“We believe collaboration between startups and corporates affords customers the biggest benefits rather than pitting the two against each other. It’s not always a quick process but we’re seeing the shift in many corporates to creating different processes work better with small businesses, making leaner more startup-friendly terms. Ultimately better terms mean a better chance of survival and a longer more successful partnership. It’s win-win,” says Rishi Chowdhury, Co-founder of Momentum Startups & IncuBus Ventures.
“Momentum Startups is the best startup growth programme I have come across. It provides crucial support to early-stage B2B companies in validating their propositions with the market – the sort of insider guidance that can make the difference between success and failure. The Momentum team have introduced Metro Bank to companies that offer us exciting ways to bring innovation to customers,” says Paul Riseborough, Chief Commercial Officer, Metro Bank
Momentum is looking to continue to close the gap in 2019 and are currently looking for some of the UK and Europe’s most innovative early-stage industry agnostic B2B startups to help them on their growth journey and also support their corporate network in the discovery of new technologies and create win-win partnerships with startups.
Startups and corporate Ambassadors can apply at www.momentumlondon.com
For more information, press only:
Rishi Chowdhury
07729369872
rishi@momentumlondon.com
For more information on Momentum:
www.momentumlondon.com