Over the last decade, the Triad’s entrepreneurial ecosystem has produced hundreds of promising startups, and today we find ourselves at the next critical juncture. These once early-stage companies are maturing and their needs are changing, so it is time for our community to respond differently. It is time for the Triad’s large corporations and organizations to engage with, support and partner with local startups if the region is to retain and grow our innovation economy.
When large corporations engage with startups, they gain a competitive edge. Today’s hottest technology, smartest talent and most disruptive ideas live in startups. Imagine having access to technology that can amplify and accelerate innovation and efficiency, that can automate and secure information flows, that can open new lines of business or improve services.
On the talent front, imagine having access to the brightest minds, the caliber of talent that once chose high-profile consultancies now chooses to work at startups instead. Imagine creating a pipeline of new product ideas that is co-created with influencers, less expensive, and faster to market leveraging personalized data, e-commerce, and new ways of reaching customers.
Locally, Volvo Trucks is a leader in working with startups. For the past several years, they have run an international search for startups working in mobilitytech, fintech, artificial intelligence and more. They have provided startups with access to projects, data flows, and funding for pilot programs that have yielded new insights and opportunities giving the company an edge.
Similarly, Novant Health has established a venture fund and a streamlined procurement process to support local startups. Through one of their startup partnerships, they are leveraging AI-driven technology to accelerate the treatment process for stroke patients, reducing the time from ER to OR significantly. Most recently, Novant Health is partnering with the Venture Winston Grants, a startup competition run by Agile City, to support four startups working in strategic priority areas for the health care sector. LabCorp, Lowe’s Home Improvement and Truist have also created venture funds to find, invest in and benefit from working with startups.
Unfortunately, many corporate leaders view engaging with startups, even more mature ones, as a risk. But the opposite is true: not encouraging growth, exploring new thinking, developing talent, harnessing technology, and providing a next generation experience are the real risks. A relationship between corporates and startups in a triple win situation.
It is more than just the large companies and startups who benefit from working together – it is the entire community. We have worked hard to build these startups who are driving economic growth and transformation, and we need them to stay in the Triad to grow and create good-paying jobs. We need them to find customers here to grow. We need them to inspire others to start new ventures. And we need the Triad’s corporations to recognize the clear benefits of working with local startups.
There are many ways to get started – from attending demo day events showcasing local startups to starting an accelerator or venture fund. From looking at the procurement process and defining a preference for local vendors first to underwriting grants, it is time for local corporates to develop a strategy to engage with startups and reap the rewards.
Karen Barnes is the CEO of Agile City, a nonprofit innovation and entrepreneurial ecosystem consultancy based in Winston Salem, North Carolina. Their mission is to use innovation and entrepreneurship to connect communities, companies and entrepreneurs and create thriving, resilient and equitable mid-sized cities. She can be reached at karen@agilecity.ws