Corporate Start-up Engagement: Do I need an external program partner, or should I run it on my own?
This story is part of a series of articles exploring the key aspects of a start-up engagement program. In my last article, I’ve outlined the critical points organizations need to clarify before approaching start-ups (the backend of programs, so to speak). The following questions can serve as a guide on whether your organization should run a start-up engagement program independently or collaborate with an external program partner.
When organizations — may it be companies or public institutions — consider working with start-ups and scale-ups for the first time, a pivotal decision to make is whether they should run the program independently or team up with an external partner or partners.
Based on my experience of working on and leading various start-up engagement programs in the past four years, I’ve put together a list of key questions to help you assess your requirements.
I prefer to split each program into the following four phases: Program Design & Preparation, Program Outreach & Evaluation, Program Execution, and Post-Program Activities. Each stage should be assessed separately, whether support from an external partner is required or not.
1.PROGRAM
DESIGN & PREPARATION:
The first phase aims to define the desired outcome clearly, and the ideal profile of participating start-ups, create a detailed program calendar and participants’ journey, and develop an outreach and marketing plan.
The key questions to consider here are:
- Has your organization collaborated with start-ups before?
- Have you designed a start-up engagement program before (may it be a hackathon, incubator, accelerator, pitching competition, etc.)?
- Are you aware of the overall time required for the preparation and execution of your program?
2.PROGRAM
OUTREACH & EVALUATION:
During this phase, you aim to reach as many suitable start-ups as possible and invite them to apply to your program. The next step is to vet the applicants and select the ones you consider the best fit for the program and your organizational goal.
What you need to keep in mind in this phase:
- Are you aware of which offline and online channels are most efficient in communicating with start-ups?
- Do you have the network which allows you to scout and find the most suitable start-ups based on your organization’s aim?
- Do you have the know-how of designing the evaluation process and of vetting start-ups?
- Can you assign an internal team to take care of the full outreach and evaluation process?
To ensure a good outreach and sufficient time for start-ups to apply, I would recommend planning in a minimum of 7 weeks. While the vetting process usually runs parallel with the application period, you would require at least three additional weeks post application deadline to complete all last-minute applications. (BTW, from my experience, yes, you always end up receiving a significant number of applications last minute ;))
To set yourself a target of a target for applications received, start with how many would like to join the program. Then multiply the number by 2 or 3 to have a decent pool of shortlisted companies to choose from. This number should then get multiplied by the number of evaluation stages.
From my experience of running Dubai Future Accelerators, e.g., our team would review 600+ applications for six organizations and shortlist around 12–20 for each of the six organizations. Our partner organizations would then select four to six companies to join the cohort.
Depending on the final decision process — whether the selected applicants have to be approved by your management team — you might need 2–3 weeks more.
All in all, you will require at least 12 weeks before you can proceed with the program execution.
3.PROGRAM
EXECUTION
Depending on the duration and scope of the program, this phase is usually the most resource intense. Once you have selected the start-ups among the applicants' pool, it’s time to kick off the program.
The key points to consider here are:
- Do you have an internal team with the experience of working with start-ups, which is also big enough to fully take care of the participants and internal stakeholders throughout the program? The longer your program’s duration and the higher the number of participants, the more resource-intense your requirements are. Furthermore, it is essential to keep in mind that the program usually doesn’t fit into a 9 to 5 schedule. To create a good and memorable experience for the participants, it is vital that, on the one hand, the program calendar should involve educational activities, and on the other hand, networking and social activities, which might occur in the evenings or on weekends.
- Do you have access to the right pool of external and internal mentors and co-creators who can support the start-ups with their expertise and experience during the program?
- Do you have the office facilities to host the participants?
- If you plan to fly the program participants to your city, do you have the resources to arrange the travel and accommodation logistics?
- Are the projects you are working on of confidential nature, and hence do you prefer to run the program in isolation instead of alongside other organizations?
Once you have chosen the start-ups and inform them, it is time to plan their logistics (depending on the program format). If you require participants to fly to your city, you might want to give them at least a month to prepare. In case you are considering applicants from abroad, this period could take even longer — depending on visa requirements.
4.POST-PROGRAM
ACTIVITIES
The goal of the final phase is to outline the post-program engagement? Depending on the program format (e.g., hackathons, pitching competitions, accelerators), these activities may vary.
The most crucial point is to consider different scenarios and how the journey after the official program ends might continue for the participants and what they require. Their needs can range from company license, office space, investments, access to talent, a testing partner, marketing & PR support to mentorship, etc.
- Suppose you expect start-ups to set up an office in your country. Can you fully assist them, or would it be more efficient to tie up with a local incubator who can provide office space, a community of entrepreneurs, as well as a company license and local bank account?
- If you invest in a start-up, you might take an active role in developing their product/service and growing the overall business. Does your organization have the required resources and expertise in this field?
If you answer most of these questions with yes, you should be good to run the specific program phase by yourself. If most of the answers are a no, you might consider working with an experienced external partner for the overall program or various partners for specific phases.
Has your organization recently started to collaborate with start-ups? If yes, are you running the program on your own or teaming up with an external partner?
I’d love to hear from you.
www.karingabriel.com
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