shared last year, the general manager of PepsiCo Labs, Anna Farberov, shared her frustration with the strategic errors start-ups make when pitching to corporations. Having attended 3,500 such meetings, she felt she had the expertise to detail their mistakes. However, the backlash to her post was severe, with employees and founders of start-ups keen to highlight the issues they faced when approaching corporations. Both sides clearly wanted to collaborate.
At the first meeting, early-stage start-ups must garner sufficient interest to secure a follow-up meeting. A good performance during that first interaction is essential. There are usually no second chances. But how can start-ups gain that critical second meeting? For instance, one gaming start-up, Attractive Interactive, adapted its technology for SAAB to help pilots land in harsh weather conditions. The company’s COO said, “It was exciting to apply our knowledge of gaming development on brand-new issues.” This collaboration would have been unimaginable for Attractive Interactive before its meeting with SAAB. Not all start-ups need to pivot in this way but those that do may see potential they hadn’t previously envisioned.
These opportunities for creating value should be communicated via simple demo presentations that emphasize the ease of integrating the proposed solutions with existing channels. Pilot collaborative projects with corporations are particularly useful for early-stage start-ups because they boost the latter’s legitimacy and help expand their client base.