According to a recent Bitkom study Cooperation with established companies is of great importance for startups. Four out of five startups work with medium-sized companies and corporations.
A total of 321 German IT and Internet startups were selected for the study by Bitkom Research asked about the following topics:
- “How would you describe your relationship with established companies?”
- “Why doesn’t your startup work with established companies?”
- “Which of the following experiences have you had when working with established companies?”
- “What are your overall experiences working with established companies?”
Cooperation with established companies
The Bitkom study found that 79 percent of the startups surveyed cooperate with established companies. 60 percent even develop a new product or service together with a medium-sized company or corporation. Another 46 percent collaborate with large companies in other ways. Established companies own shares in 17 percent of the startups surveyed. Only 16 percent of the young companies stated that they do not cooperate with medium-sized companies or corporations.
Bitkom President assesses the importance of cooperation between startups and established companies Achim Berg as follows:
“The cooperation between startups and medium-sized and large companies is not only the best way to support startups, it also advances digitalization in Germany.”
He continues:
"We see that established German companies are currently still leading the global market, but are struggling to adopt new technologies such as artificial intelligence or blockchain. Many startups have expertise in these areas, but they often lack market access. Both sides and the entire economy benefit from collaboration."
Positive and negative effects of cooperation
The majority (81 percent) of the startups surveyed viewed their collaboration with established companies as positive. Sixty percent gained new customers and opened up markets through the collaboration, and 52 percent were able to not only improve their product but also expand their professional and technological capabilities (37 percent). Two out of five young entrepreneurs also stated that startups and established companies complement each other in their strengths and weaknesses.
However, over half of the startups (53 percent) negatively assessed the lengthy and labor-intensive processes involved in collaboration. 29 percent of startups also feel that large companies benefit more from collaboration than young companies. 23 percent also complain that established companies display a certain arrogance toward startups.
