Business Experimentation the New Black for Corporates – Accelerators the Quickest Makeover
Bill Cogan, partner at Ignition Law, a practice that specialises in representing start-ups in corporate venturing, describes the emergence of innovation brokers and consultancies. “There’s a reason why a company [is] large and successful – it is basically doing the right things. But its networks typically mirror its demographic, and it needs introductions to the right kind of innovators to realise its value proposition and ambitions.”
The matchmaking process that Cogan describes is not unlike football scouting by Premier League clubs when it comes to the acquisition of talent and raw material. “Staff talent and recruitment is an issue [for large enterprises]. If you align yourself to innovative start-ups and market yourself as such, then you will attract the best new hires.”
He argues that due diligence at the contract stage has a big part to play in the eventual success – or not – of the accelerator. Defining upfront the relationship and what is expected in return for funds, IP and mentoring is crucial. If the start-up becomes too subservient to the sponsor’s wishes and direction, it may end up a one-trick pony with limited future appeal to a wider market. This, in turn, may limit the value for the corporate sponsor.
Read the full article in Business Value Exchange here.