Driving growth from within – How established companies can benefit from start-ups

A breath of fresh air can do wonders – and not just in the outdoors. It wakes you up, clears your head, and also inspires you to try new things. Things that give us a boost – new ideas, change and new beginnings – can also do the same for companies. But where does this breath of fresh air come from? In many cases, it’s start-ups that are shaking up established structures.

We sat down for a chat with Florian Nöll, Partner and Global Venturing & EMEA Startups, Scaleups Leader at PwC Germany, to learn about how corporates and medium-sized companies can get the best out of collaborating with young companies – and why it’s a win-win situation for both sides.

Why do you feel closer collaboration between established companies and start-ups is essential for sustainable growth?

Start-ups tend to be more agile and innovative, providing major corporates and medium-sized companies with dynamic insights. On the one hand, the synergies that arise enable established companies to leverage fresh ideas and technologies to boost their competitiveness. On the other hand, collaboration gives start-ups access to resources and networks that propel their own growth. It really is a win-win situation that strengthens Germany’s economy overall, as well as the local ecosystem. It therefore comes as no surprise that the latest data from industry association Bitkom shows that 32% of companies already have at least one collaboration project with start-ups, with 98% of them reporting that their expectations have been met or even exceeded.

What are the concrete benefits for companies that invest in or work together with start-ups?

Companies looking to team up with start-ups stand to benefit from innovative solutions and technologies that can accelerate their product development efforts. These partnerships or investments also enable them to tap new markets. A recent Bitkom survey revealed that 11% of companies are developing new products or services with start-ups, that 3% hold financial stakes in the start-ups, and that 2% have founded their own start-ups from within the company. They thus become more innovative, which in turn helps to improve customer loyalty while also strengthening their corporate image as an innovator on the market.

What challenges arise when integrating start-up innovations into existing corporate structures, and how can they be overcome?

When integrating start-up solutions into established companies, innovation teams often encounter structural barriers – particularly in the areas of legal and IT, as well as in works council negotiations. The way to overcome these challenges varies greatly from company to company, of course. That said, our experience has shown that transparent communication and interdisciplinary teams that can work together flexibly are essential aspects to successfully navigating these challenges. And that’s something we have in fact achieved in over 80% of the last 100 projects we’ve worked on, giving rise to sustainable collaborations.