Startups and big corporates tie-up to create a win-win proposition. Such deals help start-ups gain support of a heavyweight to protect their nascent ventures, while large corporates get nimble players to innovate, deploy and commercialise products and services in shorter cycles. This helps both the players stay relevant in uncertain times like the on-going pandemic. Yet, apprehensions on both sides either turn show-stoppers or pave the way for soured relationships.
Covid aside, start-ups and large corporates invariably make great allies on paper. According to GCV Analytics, 2018 saw as many as 2,795 corporate investments in start-ups worth $180 billion. Having a large corporate as a customer, financier, resource provider, market-maker, or mentor can greatly help a startup. Similarly, a mega corporation can capitalize on the start-up’s agility in a niche space to a) earn return on investments and b) employ best-in-class talent for market innovation.
Please click here to read the full article by Nitin Potdar published in Financial Express.
Nitin specializes in Public and Private, Mergers & Acquisitions, Business Restructuring, Asset & Share Purchase, Transborder Alliances & Joint Ventures, Private Equity and general Corporate advisory.