Big muscle and fast innovation find each other in collaboration with big business and startups

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Novo Nordisk, Lego and Maersk also started as small startups before becoming the giants they are today. Although their white collars and billion-dollar revenues are a far cry from startup life, established companies are playing an increasingly important and active role in the Danish startup ecosystem.

Many large companies use innovation programs, accelerators and dedicated internal startup units to initiate their engagement with startups and the ecosystem. The programs are designed to connect corporates with startups that can get resources and support to grow their business. Through these programs, startups can access mentorship, training and resources to help them grow and scale their businesses.

Companies that want to engage more with the ecosystem often do so through corporate venture capitalFuel for startups' rocket ride. Venture capital is pro investors who create pool funds to seek innovation, and to mentor. It is high risk, high reward journeys. More funds (CVC funds). These funds are created by companies to invest in startups working on innovative technologies or business models that are relevant to the company’s strategic goals.

Strategic funding from a potential customer

For startups, there are several benefits to partnering with large, established companies. First and foremost, it gives them access to resources and market share that they don’t have themselves. A collaboration where an established company becomes a customer can be crucial for a startup’s cash flow and brand. If the collaboration is more strategic in nature, the right collaboration can support the entire growth journey.

For established companies, there can also be a number of different reasons to engage in the startup ecosystem.

The most significant is access to rapid innovation and new ideas and technologies that can help improve competitiveness. Startups and scaleups often operate with a more agile approach to innovation, which enables them to develop and implement new ideas and technologies faster than corporates, which typically have slower decision-making processes and are bound by existing structures.

Working with startups can also inspire corporations and their employees to embrace a more entrepreneurial and risk-taking culture, which can be crucial for innovation and adaptability in an ever-changing marketplace.