Opinions expressed by Entrepreneur contributors are their very own.
As an skilled company government, entrepreneur and investor, I usually advise companies about accelerating their development. This can be a frequent problem for corporations across the globe. These corporations is perhaps utilizing previous-generation expertise and, sadly, conventional Analysis & Growth (R&D) efforts are sometimes ineffective in growing modern concepts. Firms generally accomplice with universities on joint expertise tasks. Nevertheless, such partnerships often produce outcomes too slowly in immediately’s fast-paced enterprise surroundings.
I imagine that the key to accelerating company development is to change into extra modern. Whereas it’s doable to innovate internally, organizations making an attempt this fail extra usually than they succeed. It is inherently difficult to ask company staff to assume like a startup founder. As an alternative, I like to recommend that companies change into extra modern by investing in startups, which permits the company to develop extra rapidly. For the reason that startup ecosystem develops modern concepts regularly, investing in startups is the quickest and most cost-effective technique to develop.
Associated: Startups & Corporates: A Symbiotic Relationship
Capitalizing on world startup competitions
Startup competitions are rising around the globe. Collaborating in them — whether or not this implies attending, talking or judging — gives companies an opportunity to community with modern startup founders. By doing so, they will construct relationships, be taught market insights, uncover modern expertise and achieve entry to expertise. Collectively, such alternatives will assist companies change into extra modern and develop rapidly. Since startup competitions convey collectively one of the best corporations from around the globe in a single place, that is an efficient technique to meet lots of them in a brief timeframe.
In the present day, it is typical that main conferences — similar to TechCrunch Disrupt, Startup Grind, Dublin Tech Summit, and Net Summit — host startup competitions at their occasions. Universities additionally host marketing strategy competitions, usually for startups which can be already producing income whereas their founders are nonetheless at school. There are additionally devoted startup competitions such because the Startup World Cup, which hosts 100+ regional competitions across the globe. It culminates in a grand finale occasion the place the winner receives a $1 million funding prize. All these kinds of occasions are robust networking alternatives since they’re attended by startups, companies, traders and the media.
How startup competitions profit companies
Let’s assessment particular ways in which companies can get probably the most out of startup competitions. As a place to begin, companies ought to search for startups that match their strategic route and enterprise goals. Firms can use these competitions to provoke partnerships designed to assist each events develop. As these partnerships develop, companies can assess whether or not to put money into the startups they accomplice with.
Startup competitions additionally function a testing floor for brand spanking new applied sciences and modern concepts. There are usually stringent standards to enter these competitions, so as soon as a company supervisor or government decides to attend, they are often assured that solely one of the best concepts are being offered. I imagine it is a good suggestion for companies to search for startup applied sciences that complement their expertise in order that the 2 corporations can work collectively to develop in a mutually useful method.
One other method companies can profit from taking part in startup competitions is to make use of the occasion to grasp market tendencies. Firms ought to study what new applied sciences are being developed and what buyer challenges startups try to resolve. This helps decide which startups are most related for an organization to change into extra aggressive. One other alternative that startup competitions supply is the prospect for companies to have a look at new expertise. Sometimes well-educated, artistic persons are those that take part in these competitions. Firms can develop their networks and should even have the ability to rent startup staff from these occasions.
The function of company enterprise capital
Past networking and partnership, I like to recommend companies contemplate investing in startups to change into extra modern. At startup competitions, they will meet founders and uncover new expertise. They will then make investments with the help of a Enterprise Capital (VC) accomplice. Though an organization can arrange an inner investing group, doing so is troublesome and costly. Hiring VC professionals who wish to work in a company surroundings can be troublesome. An alternate mannequin is Enterprise Capital-as-a-Service (VCaaS), which implies aligning with a VC agency to speculate on the company’s behalf.
Firms that make the most of the VCaaS mannequin make investments primarily based on their price range, timeline and strategic goals. VCaaS gives a excessive stage of flexibility and advantages companies for the reason that VC agency finds startups with modern expertise and conducts thorough due diligence. This ensures that an funding is mutually useful.
Associated: Company Innovation Via Efficient Startup Investing
Startup competitions do a outstanding job of attracting one of the best expertise concepts and one of the best founders from the world over. These occasions enable startups to share their experience, expertise and concepts. They will additionally use these competitions to satisfy new companions and traders. In the end, this may assist startups and their company companions attain new prospects and markets, rising extra rapidly than they’d in any other case.
