Why do corporations need startups?
Startups become source of the new business ideas and innovative solutions for big corporations.
In the modern world the business environment is constantly changing, companies not only need to deliver goods or services, but also to do it fast, scalable and with personalized features. The tendency is towards digital technologies which are crucial for being competitive nowadays. That is why big corporations begin cooperating with startups of big data, AI, fintechs and others.
Cooperation with startups brings important know-how to the corporations. Startups are more adaptable to the rapid changes; they need to reach results faster and cheaper and often work based on the Lean Methodology. The culture of startups is based on a riskier approach compared to traditional companies, they launch products and test them before perfecting them. They are more innovative and responsive, develop unique technologies, serve to the new markets or use new ways of delivering services.
For startups big corporations give a strong support of its activities because they become their partners or clients that makes startups trustworthy. Startups get sources of networking and opportunity to promote their products through strong communication channels. Distribution channels of corporation as well ensure rapid growth in a sustainable way for startups. Finally, corporations are important source of financing.
There are many ways of cooperation between startups and corporations:
– Direct investments: The company invests in a startup to make it part of the ecosystem and to improve some processes using the startup technology.
– Acquisitions: The company can buy a minority stake to try the model of the startup. If the pilot is successful, a majority stake is bought.
– Accelerators. Some companies launch corporate accelerators, other cooperate with venture capital funds to search for innovations in particular industries. Startups can apply to a competition in case they solve some crucial problem of the company. Startups receive infrastructure to implement a pilot financed by the company and in case of success the company converts into a client.
To be selected for cooperation it is important for a startup to be able to solve one of the needs of the company and be able to implement a pilot. Verqor started its cooperation with the corporations through applying to 100+ Accelerator of AB InBev and offering the best initiative on a global level for empowering its farmers.
In Verqor we cooperate with the companies that buy from farmers, FMCG companies that use agricultural raw materials to produce their final product. Verqor aims its services at farmers who are part of supply chains of companies. We offer an innovative platform for these companies to solve an important issue, financing their suppliers (farmers). In developing countries, farmers face lack of liquidity and many of them struggle to cover even daily expenses due to inaccessible financial services that they need for financing their production cycle.
The companies that buy from farmers need to ensure deliveries of the agricultural raw materials (seeds, beans, vegetables, fruits) and have to help farmers financing their activities. Nevertheless, it means high operational costs as it is not the core activity of the companies. With Verqor platform farmers obtain accessible credit lines for productive purposes in a digital way.
Even though the final user of the service is the farmer, Verqor is a B2B2C startup. It provides the companies purchasing data of its farmers (which agro supplies they use to harvest). For companies it means better control, traceability of their supply chain and opportunity to measure the quality of the raw materials they purchase. Accumulating this data is the base for establishing sustainable practices among farmers and increasing quality of the final product. This way companies can reach better engagement with the final customer providing information about the raw materials they use for production. Moreover, the companies can apply to receive a sustainability certification.