It's tough to build a company on your own. Many large corporations are looking to startups to fill their innovation gaps. A quick tutorial on what is a good partner and how to engage.

1. Strategic Alliances and
Partnerships
This presentation is made possible by the support of the American People through the United States Agency
for International Development (USAID). The contents of this presentation are the sole responsibility of Rick
Rasmussen and do not necessarily reflect the views of USAID or the United States Government.
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2. What is a strategic relationship?
• Any relationship where two companies work
together to cooperatively address a market,
product, technology or resource
• From “Press Release” to Partial Acquisition

3. Potential Alliances…
Many Opportunities in the entire ecosystem
Consultants
Media
Prospects
Vendors
Customers
Competitors
End-Users
Complimentary
Service Providers
User Groups
Industry Associations

4. Why Strategic Alliances?
Developing and commercializing new
products on a global scale is too
complex and expensive for many
companies to go alone
– Funding
– Technology
– Infrastructure
– Credibility

5. What’s the Single Most Important Issue?
The Strategy
Structuring the Deal and Dividing the Pie
So That
Both Partners Can Thrive

6. Mutual Benefit
•
•
•
•
Corporate partners need you
Their R&D pipeline may be thin
They are looking for other sources of technology
Their corporate culture is challenged and need a
startup mentality
• They are looking to cut off potential sources of
competition
• Connections to foreign markets

7. Top Five Strategic Deal Tools
• Geography
• Field of Use
• Manufacturing Rights
• Control of Development
• Exclusivity

8. Large Company’s
Dilemma
• How to create innovative
new products?
• Where to find breakthrough
inventions?
• Access new markets
without risking a lot?
Startup’s Dilemma
• How to find initial
customers without
spending a lot of
money?
• Who will risk career to
buy from a startup?
Mutual Interests Drive Partnerships

9. Reasons of Partnerships
• “Spreadsheet” reasons
– Speed entry into new areas of geographies
– Increase revenue
– Cut costs
• “Halo effect” reasons
– To silence critics
– To respond to competitors announcement
– Press coverage

10. Mapping Partnerships
High
Revenue &
Profit Potential
from the Partner
Low
Earning
Partner
Strategic
Partner
Limited
Partner
Learning
Partner
Low
High
Partner’s Potential to Help You
Develop Your Core Competencies

11. 4 Keys to Create Successful Alliances
• Investment
• Valuable resources from both partners
• Synergistic opportunities, not to mask weaknesses
• Interdependence
• Complementary assets
• Integration
• Linkages between many organizational levels
• Partners become both teachers and learners
• Importance
• Relationship plays a key role in partners’ long-term objectives

12. Where to connect?
CEO Office
Venture
Capital Arm
Product
Division
Operations /
Supply Chain
VP
Engineering

13. Vetting Process
• Always requires a “deal leader”, champion
• Friends vs. Foes
• Corporations always looking to say “no”
– Finance
– Legal
– Engineering
• Due diligence process similar to acquisition

14. Take Aways
• Understand the ecosystem & motivations of each
party
• Invest in these elements & ensure that the other party
is also investing
• Importance of planning the Strategy