The right strategic partnership between a startup and a corporation can be a beautiful thing, but the breakups can also be painful. Read on to find out what both startups and corporations should look out for—and how to keep the love alive. 

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Startup-Corporate Partnerships: Keep the Love Alive

For startups longing to grow, access resources and secure funding, the right corporate partnership can seem very tempting. After all, what corporations lack in the flexibility and agility of a startup, they make up for in reach and assets. Together, the startup and the corporation appear well-positioned to pivot strategies, train and hire teams, and launch entirely new businesses with speed and at-scale. 
Yet while startups and corporations have a lot to gain from one another, they come from very different worlds—and it shows. Partnerships are often fraught with process disputes and conflicting business visions. Without intervention, often from a third-party consultancy, structural and cultural clashes can doom once-promising relationships.
Obviously opposites do attract. In 2020, <a href="https://www.law.com/legaltechnews/2020/07/14/vodafone-launches-legal-services-offering-397-36217/?slreturn=20201018134553" target="_blank" rel="noopener">Vodafone partnered with Sparqa Legal</a> to expand into the consumer legal-tech market. <a href="https://www.prnewswire.com/news-releases/greentown-labs-and-schneider-electric-announce-bold-ideas-2020-startup-participants-301124757.html" target="_blank" rel="noopener">Schneider Electric partnered with Greentown Labs</a>, a climate-tech incubator, to select promising startups in the energy space. Looking ahead, if startups and corporations want to drive innovation together, they’ll need to learn how to communicate and cooperate.

<h3>The warning signs </h3>
There are common causes for friction in these partnerships: 
<ul>
<li data-leveltext="" data-font="Symbol" data-listid="1" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">Timing: Startups make mission-critical decisions daily with ruthless pragmatism. Corporations need six months to a year to make similar decisions. </li>
<li data-leveltext="" data-font="Symbol" data-listid="1" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">Process: Startups lack the formality of corporate processes. Incompatible operations lead to big headaches and dire missteps.<span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:720,&quot;335559737&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259,&quot;335559991&quot;:360}"> </li>
<li data-leveltext="" data-font="Symbol" data-listid="1" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">Purpose: Corporations own large portfolios, measuring the success of their mission incrementally. Startups exist solely to disrupt the status quo now.<span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:720,&quot;335559737&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259,&quot;335559991&quot;:360}"> </li>
<li data-leveltext="" data-font="Symbol" data-listid="1" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">Level of Risk: Stakes between parties are generally not the same. Startups are all in, betting big on partnerships. Corporations typically think they have less on the line.<span data-ccp-props="{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:720,&quot;335559737&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259,&quot;335559991&quot;:360}"> </li>
</ul>

<h3>Making the connection </h3>
For startups, making that initial connection with a corporation can be daunting. It’s critical to come armed with radical ideas, but also solid business foundations. “Startups need to reach a certain level of maturity before interacting with corporates,” says Sylvain Grivel, Innovation Lab Management Head at Sanofi in Lyon, France. “Proof of concept is not enough. They should already have a good understanding of both the business potential and the strategy to seize it.” 
It’s not unusual for startups to be suspicious of a corporation’s intentions. At frog, we’ve worked with many startups that are ready to be acquired but feel too protective of their vision to risk committing to the wrong partner. An acquisition can feel a kiss of death to a startup&#8217;s sense of purpose. “If the big co wanted to swallow us, they had to acquire us,” says Greg Sorenson, CEO of DeepHealth in Boston, Massachusetts. Alexandre Andre, who assists startups at the Lyon-based Incubator Manufactory, has seen how acquisition can lead to apprehension. “A common goal is to be acquired by a big company, but the fear is to be absorbed, dominated, without any countervailing benefit.”   
Keeping the love alive takes trust. It takes communication around IP, aligned success metrics for shared purpose and clear exit strategies. These are all areas where third-party intervention can keep businesses in sync, offering a neutral ground to experiment with new ways of working, while acting as translator to speak the languages of both startup and corporation.

To bridge cultural and operational gaps, there may be cause for third-party intervention across the entire lifecycle of a partnership. 

During initial assessments, third-party firms act as matchmakers, helping businesses find common ground in a crowded, competitive landscape.

Validation

Third-parties design a plan for strategic collaboration and a shared vision for the future, while ensuring both sides are heard equally.

Facilitation

Bringing startups and corporations together into a larger partner ecosystem requires apparent mutual value. Third-parties remain neutral, able to make connections that benefit both sides.

Connection

Driving rapid innovation in 2021 will require a committed customer-centric mindset. Third-parties act as customer advocates, helping startups and corporations speed up innovation on projects that improve customer experience.

Acceleration

Not all business partnerships are built to last. <a href="https://hbr.org/2007/11/simple-rules-for-making-alliances-work" target="_blank" rel="noopener">Reports</a> suggests as many as 70 percent don’t. Third-parties act as mediator between parties even as they go their separate ways, protecting company values and reputations along the way. Think ‘conscious de-coupling,’ not bitter divorce.

Post-Partnership

When to intervene 

<h3>Making the romance last as long as it&#8217;s profitable for both</h3>
Looking into a Post-Covid business future—where continuous innovation is needed to address evolving customer needs at an alarming pace—startups and corporations are wise to form healthy bonds to meet tomorrow’s challenges head-on.
It’ll take TLC from both partners and often outside help to arrive at a happy ending. If the partnership’s a match, it&#8217;ll be a win-win. If it sours, it doesn’t need to be a devastating blow for either side. Like all breakups, the hope is to learn a lesson to take into your next alliance. Who knows? The next partnership could truly be the one.

Angela Martin

Pierre Dubié

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pierre

Here’s how to shape and maintain an Innovation Accelerator that meets your strategic goals.

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Innovation Swirl? Try frog’s Innovation Accelerator Canvas 

It’s imperative that today&#8217;s businesses innovate fast and continuously. Designing systems and structures and making the right connections are essential to meeting this charge.
An ‘Innovation Accelerator’ is a structure for identifying, attracting and providing the resources necessary to define and launch new internal or external initiatives to meet business objectives faster. It’s all about bringing speed, momentum and capacity to bold ideas and new ways of working to advance innovation culture and results.
Accelerators are being used across all sectors—from Fintech to Healthtech, Climatetech and more— not only to continuously push toward the new and disruptive, but also to actively de-risk innovation, providing a purpose-built environment to conceive, then iteratively test and refine new solutions prior to entering the market.
And while the business needs that determine the appropriate shape and functioning of accelerators are continually shifting, the pace of change that makes them essential is only increasing. According to <a href="https://www.statista.com/statistics/1121625/impact-of-covid-on-innovation-demand/" target="_blank" rel="noopener">Statista</a>, the COVID-19 pandemic has only intensified the need for innovation accelerators, specifically in emerging tech like advanced analytics, IoT and AI. 
No matter your industry, objective or team structure, the <a href="https://go.frog.co/en-gb/innovation-accelerator-canvas" target="_blank" rel="noopener">Innovation Accelerator Canvas</a> developed by frog’s <a href="https://www.frog.co/services/org-activation" target="_blank" rel="noopener">Org Activation</a> team, can help you meet your innovation goals. <a href="https://go.frog.co/en-gb/innovation-accelerator-canvas" target="_blank" rel="noopener">Download the editable PDF</a> to help anchor your strategy and make key decisions about your accelerator’s purpose, its sourcing and selection strategy, the acceleration process and make up of your team, as well as the nature of your revenue and value streams. 
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<h4>Innovation Accelerator Landscape</h4>
From our work with Microsoft Ventures, Google 30 Weeks, B612 Cockpit, Allianz Global Digital Factory and others, as well as our collaboration with one of the world’s largest tech companies to structure the experience and curriculum for its global network of startup hubs, we’ve learned from years of experience helping design innovation accelerators. 
As each accelerator reflects the specific assets, capabilities and value-generation model prioritized by its hosts, no two are identical. That said, when grouped by their strategic intent, some commonalities emerge. Your accelerator might fall under one of these categories, be a combination of several of them, or be something unique altogether.
Accelerator for internal change: A common objective of an internally focused accelerator is to mobilize employees as intrapreneurs and transform company culture. This involves the definition and dissemination of values, methods and routes toward innovation. In this model, the outcomes often pertain more to the improvement of business operations (e.g., becoming more agile, building new capabilities) than direct financial returns. For example, DSNA (a French air traffic management company) designed a specific acceleration program in order to foster an intrapreneur&#8217;s mindset and add new momentum to the organization’s transformation and increase competitiveness.
Accelerator to enhance open innovation: In an open innovation accelerator, the typical objectives include fostering the development of collaborative projects, attracting promising partners and strengthening engagement with external ecosystems. It’s not uncommon in these models to host open calls for innovative projects and to stimulate internal teams with external “sparring partners.” For example, pharmaceutical giant Sanofi built its Sanofi 39bis and 14bis Open Innovation Labs in Paris and Lyon to explore open innovation initiatives with partners.
Vertical-focused accelerator: Some ventures and initiatives require deep domain knowledge to make meaningful progress. These specialized accelerators might have an industry orientation, such as the Airbus BizLab which focuses on aerospace innovation, or a tech specialization, such as Nvidia—a global network of over 6,000 AI startups.
Accelerator for VC-oriented startups: To attract VC funding and follow-on rounds, startups need to demonstrate key forms of traction at each stage of their development. This might be proof of technological feasibility or product-market fit in the earliest stages, customer acquisition, engagement and retention as they progress, and revenue-oriented metrics later on (e.g., MRR, ARR, LTV, etc). Accelerators supporting these startups often provide a structured environment to hit key objectives within a clearly defined timeline—with the goal of tangibly increasing both the startup valuation and likelihood of funding. Their engagement models often focus on maturity stages (e.g., pre-seed, seed, scale, etc.) and verticals (industries and/or technologies) in order to allow for deeper support of a more aligned cohort of participants.
Looking to set up and run an accelerator of your own? The Innovation Accelerator Canvas is designed to help you define a strategy that works for your organization’s unique needs. <a href="https://go.frog.co/en-gb/innovation-accelerator-canvas" target="_blank" rel="noopener">Download the Innovation Accelerator Canvas</a> to start your accelerator journey today.

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Venture-Accelerator-Canvas-Report

Marjorie Lefort

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frog_author_Marjorie_Lefort

Learn how to break down silos and clear the path to rapid innovation with the Open Innovation Lab Canvas.

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Design an Open Innovation Lab for Lasting Value

Innovation Labs. Incubators. R&amp;D Hubs. Accelerators. <a href="https://www.frog.co/designmind/how-to-accelerate-organizational-impact" target="_blank" rel="noopener">Centers of Excellence</a>. No matter what an organization chooses to call this particular function, <a href="https://go.frog.co/en-us/how-to-launch-an-open-innovation-lab" target="_blank" rel="noopener">Open Innovation Labs</a> are a powerful way for companies to inspire new ways of working and drive rapid, consistent innovation. Hundreds of labs are now in operation around the world—each building a strategy to serve a specific, well-defined purpose.
Here at frog, we’ve designed these labs for many companies—along with their operational models, processes and tools—with the goal of helping teams work better together toward achieving their goals. For Toulouse Metropole, frog’s <a href="https://www.frog.co/services/org-activation" target="_blank" rel="noopener">Org Activation</a> team designed co-working spaces for their Innovation Accelerator’s Airspace and AI-focused startups and innovation projects. We coached healthcare giants Sanofi on using design thinking and lean startup tools to speed up decision-making within their open innovation hub. For Safran Aircraft Engines, a French aircraft engine manufacturer, we contributed to the coordination and launch of the &#8220;Atelier Innovation Module&#8221; (AIM) Innovation Lab, and trained the new Lab manager in his new position, taking a user-centric approach in all decision-making.
We know firsthand there is no shortage of reasons to design an Open Innovation Lab that fits your organization’s unique needs. Here are just a few examples of why companies choose to design labs:
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<ul style="font-weight: 400;">
<li data-leveltext="" data-font="Symbol" data-listid="2" aria-setsize="-1" data-aria-posinset="2" data-aria-level="1">Launch new products and services</li>
<li data-leveltext="" data-font="Symbol" data-listid="2" aria-setsize="-1" data-aria-posinset="2" data-aria-level="1">Drive cultural transformation</li>
<li data-leveltext="" data-font="Symbol" data-listid="2" aria-setsize="-1" data-aria-posinset="2" data-aria-level="1">Develop a co-creation space to welcome clients and partners</li>
<li data-leveltext="" data-font="Symbol" data-listid="2" aria-setsize="-1" data-aria-posinset="2" data-aria-level="1">Accelerate projects and businesses</li>
<li data-leveltext="" data-font="Symbol" data-listid="2" aria-setsize="-1" data-aria-posinset="2" data-aria-level="1">Accommodate new capabilities</li>
</ul>
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<h3>In-Person vs. Virtual</h3>
Especially in a <a href="https://www.frog.co/designmind/design-provocations-for-a-post-covid-world" target="_blank" rel="noopener">post-COVID world,</a> labs that rely on fully digital channels are more significant and effective than ever. Working in a virtual setting offers endless flexibility to build your team across time zones, geographies and other conventional barriers to collaboration. With the right tools, <a href="https://www.frog.co/designmind/bringing-remote-teams-together-a-conversation-between-frog-program-managers" target="_blank" rel="noopener">bringing remote teams together</a> for work sessions, reviews and co-creation sessions is on par with traditional, in-person engagements. However, <a href="https://www.frog.co/designmind/9-keys-to-remote-collaboration" target="_blank" rel="noopener">remote collaboration</a> requires the same level of commitment and structure as an in-person lab to succeed. It will also need special attention to make connecting via digital channels easy, engaging and stimulating to all parties.
If you choose to create a physical space where your Open Innovation Lab team members and partner ecosystem can convene, consider first how the space would best be used. Should it be a living showroom of your team’s innovations? How about a dedicated workspace for your team to operate certain types of specialized equipment? Understanding your team’s specific needs and goals will help determine the space required.
Whether your lab is virtual or you intend to meet face-to-face, a little branding and communication of your team and your space will help the rest of the organization and your ecosystem get to know you better. It’s important to stay visible to keep up momentum and extend the lab’s successes throughout the organization and across the larger partner ecosystem.
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<h3>The Open Innovation Lab Canvas</h3>
In our experience, we know there is an art and a science to launching a new Open Innovation Lab. That’s why we developed the <a href="https://go.frog.co/en-us/how-to-launch-an-open-innovation-lab" target="_blank" rel="noopener">Open Innovation Lab Canvas</a>, a guide for designing a lab to meet your business objectives. Use the canvas to learn more about the dimensions necessary to build an Open Innovation Lab fast that works for your organization. These dimensions include:
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<ul style="font-weight: 400;">
<li data-leveltext="" data-font="Symbol" data-listid="2" aria-setsize="-1" data-aria-posinset="2" data-aria-level="1">PURPOSE: Shape Your Mission</li>
<li data-leveltext="" data-font="Symbol" data-listid="2" aria-setsize="-1" data-aria-posinset="2" data-aria-level="1">ORGANIZATION: Form Your Team  </li>
<li data-leveltext="" data-font="Symbol" data-listid="2" aria-setsize="-1" data-aria-posinset="3" data-aria-level="1">RESOURCES: Invest in Success </li>
<li data-leveltext="" data-font="Symbol" data-listid="2" aria-setsize="-1" data-aria-posinset="4" data-aria-level="1">APPROACH &amp; TOOLS: Define Your Process </li>
<li data-leveltext="" data-font="Symbol" data-listid="2" aria-setsize="-1" data-aria-posinset="5" data-aria-level="1">PLACE: Make Space for Change</li>
<li data-leveltext="" data-font="Symbol" data-listid="2" aria-setsize="-1" data-aria-posinset="6" data-aria-level="1">SPONSORS: Find Your Support </li>
<li data-leveltext="" data-font="Symbol" data-listid="2" aria-setsize="-1" data-aria-posinset="7" data-aria-level="1">ECOSYSTEM: Build Your Network  </li>
<li data-leveltext="" data-font="Symbol" data-listid="2" aria-setsize="-1" data-aria-posinset="8" data-aria-level="1">ASSETS: Leverage Your Position </li>
<li data-leveltext="" data-font="Symbol" data-listid="2" aria-setsize="-1" data-aria-posinset="9" data-aria-level="1">DELIVERABLES: Establish Your KPIs </li>
</ul>

You can use the Open Innovation Lab Canvas at different stages of your lab’s maturity.  

Once you have a vision and a goal for what your Open Innovation Lab can be, use the Canvas to ask the right questions and find helpful dos and don’ts for designing your lab.

Initial Design

Through various points in operation, use the Canvas to check in on progress and assess current performance. Consider the dimensions outlined in the Open Innovation Lab Canvas a checklist for understanding where your lab is operating properly today and where there may be room for improvement.

Ongoing Operation

The world is changing fast. Even while your lab is still operating well, you may find you need to pivot and adapt to the times. Use the Canvas to revisit your lab&#8217;s purpose and be sure your operational model, value proposition, methodologies and assets are still serving you well as you pivot into a new direction.
<a href="https://go.frog.co/en-us/how-to-launch-an-open-innovation-lab" target="_blank" rel="noopener">Download the Open Innovation Lab Canvas</a> to learn how to break down silos and clear the path to rapid innovation. Find dos and don&#8217;ts for each step of the way, from setting up your lab to measuring the success of your results.

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Pierre Dubié

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