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Why 55% of partnerships between enterprises and startups fail?

Are you into procurement and innovation and considering working with startups?

Good thinking.

Here is a piece of advice.

Circa 55% of partnerships between enterprises and startups fail due to misalignment.

It’s not only a waste of time and money on both sides; It’s mostly avoidable.

For sure, we don’t all magically get along and agree with each other. But it is remarkable how much time is devoted to superficial matters rather than to the content of collaboration.

At Teeming – a trusted third party specializing in innovation partnering, we research frequently-cited reasons for misalignment. In random order, here is the top 5:

  1. Misconception at the enterprise of what a startup is
  2. Ill-sourcing. E.g., closing so-called deals over dinner parties
  3. No ability of the enterprise to move at the same speed
  4. Fuzzy collaborative work process plus lack of performance metrics
  5. Slow decision-making

The main error is this: Enterprises all too often jump straight into the doing, unlike spending the time to test the depths of the relationship with the startup and grow confidence.

Therefore, align expectations first. Make the implicit explicit. The real competitive tissue is not in the startup’s technology and its solutions but in the quality of how the enterprise team and startup team connect. And that’s 100% human.

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