How can a startup with limited resources negotiate effectively with a larger partner?

Created
Jan 15, 2025 8:58 PM
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messages like this are common:

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My oppinion about this; Many founders are scared about their IP when sharing it to a corporation.

IP is one thing but at the end what scale on the market is the GTM / marketing; how you’re getting those customers. This is why unless it is a very very specific technology; I wouldn’t be afraid that a company sees and test a product.

Actually corporations now are turning towards this model: the venture clienting model

Here some material about Venture Clienting:

the essence of this model is that the company doesn’t take any co-development initiatives or whatsoever; or signing sth etc.

The startup should see the big corporates as a pilot customer; they give sample and the outcome of this is a pilot of 3 months with that sample.

Startups need to make sure that:

  • There is an internal champion inside of the company ; willing to make sure someone inside of the company needs this technology
  • ⁠The pain of the BU is identified
  • ⁠That the BU was actually looking forward to this technology

The startup should not give a sample is none of the above is not clear?

  • What happens inside of Nestly once the sample is received?
  • ⁠Is there a clear pilot program? Any agenda; schedule timeline?

If not; wait and plan this first. A specific outcome needs to be adressed before shipping the sample

E.g Nestle; What is great with Nestle is that it seems they already made several collab? https://thefishsite.com/articles/corbion-teams-up-with-nestlé-on-microalgae-ingredients

I would recommend the startup to contact a founder who worked with them already, to understand how the collab went with Nestle; they have all the insights!!