For startups navigating strategic partnerships, the stakes are incredibly high — one deal can tie up resources, shape your product development, and determine your overall trajectory. This is amplified for startups in physical sectors, where these critical alliances are often a catalyst.
At the same time, the large incumbents you partner with have far less to lose if the collaboration doesn’t work out. This power imbalance can make negotiations feel like an all-or-nothing game.
So what can you do to ensure the alliance you are forming is mutually beneficial?
Eclipse partners Lior Susan and Jiten Behl outline the three fundamental questions founders should ask when approaching strategic partnerships:
1. Are you ready to embrace the complexity of the giant company you’ll partner with?
- Make sure your goals align with their strategic priorities.
2. How will you equip your internal champions?
- Large corporations conduct extensive due diligence. Arm your board with the relevant data points needed to convincingly advocate for you.
3. Why should they bet on you?
- Make sure you can clearly demonstrate your differentiators, such as unique IP, market insight, or speed.
More details (including real-world examples from companies like Rivian, Cerebras Systems, and Bright Machines) can be found in the full post, linked in the comments.