This document discusses strategic partnerships as an alternative funding model for startups. It notes that building a business alone is difficult, with high failure rates, so seeking partnerships can help with resources like capital, exposure, knowledge and talent. A strategic technology partnership in particular can provide speed to market through product development assistance. Both startups and partners benefit, as partners gain return on investment, access to new technologies, and market expansion opportunities. The document advises startups to find partners that understand their industry and can add value, with a good cultural fit and track record.
7. BUILDING A BUSINESS IS
TOUGH…
44% of new businesses are dead within three years,
rising to 50% by year four.
Usually due to incompetency: Nonpayment of taxes,
insufficient pricing knowledge, lack of planning, poor
record keeping.
More than 565,000 startups launch each month in the
US alone
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9. Speed is a critical factor in today’s market. To give
yourself the greatest chance of success, you need
to find and build a high-quality team and get your
product to market fast.
!
For many startups, who are racing to raise capital,
develop their product and scout for talent all at the
same time, the demands of trying to do it all are
simply too high.
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10. Farhan Thanwar from Xtreme Labs / Pivotal Labs says:
!
“MYTH: You can build your mobile app internally as
fast as an outside firm.
REALITY: Building your app yourself will take 4x the
time.”
!
When they decide to go internal, they’re essentially
choosing to pay with time instead of money.
Why does it take startups so much longer to do it on
their own? They don’t anticipate their most critical
need: Hiring.
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45. Finding the right technology partner is
no different than finding your
employees or co-founders.
!
You need a strong connection and there
needs to be a shared vision and belief in
what you’re building.
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