Larger corporations and brands looking to forge working relationships with startups should consider bringing incubators in house to drive efficiency and value across the business according to Tarah Feinberg, CMO and NY managing director at startup/brand connector Kite.
Speaking to The Drum Feinberg said that establishing in house incubators means that brands don’t need to expend energy and cost searching for new startups each time they have a business problem to solve.
“Bringing incubators in house really makes sense for a lot of companies especially global, multifaceted companies,” he said. “It allows them to nurture a relationship with a start-up that might not be fully mature, try it out in certain areas of their business and if it works, scale that across their business in a bigger way into new markets or sub brands or product areas.
“That creates a lot of efficiency and value by being able to not have to go find a new relationship every time you need to solve that problem around your business.”
On the challenges often encountered by big companies when trying to work with startups and emerging technology companies, Feinberg said that brands should think about operational structure, decision making, legal process, and what a payment process might look like in order to set themselves up for “a streamlined and respectful relationship” that is realistic about the way small businesses work.
Check out the full interview with Feinberg above.