Dealmaking can be a daunting task for startups, especially when it comes to pitching their pilot to industry giants. Breaking into and staying in a large organization requires understanding the psychology behind dealmaking and navigating through deeply ingrained historical ways of doing things. As an experienced investor and dealmaker, I have witnessed firsthand the challenges faced by startups in securing their first big, institutional win and leveraging it into sales to other similar organizations.
Key Takeaway
Pitching your pilot to industry giants requires an understanding of the psychology behind dealmaking and the ability to navigate through established ways of doing things in large organizations. Identifying the right point of entry, knowing your audience, and embracing adaptability are key factors in securing your first big win.
Understanding the Corporate Decision-Making Behaviors
Large organizations have complex structures and decision-making processes that can be difficult for startups to grasp. Drawing from my years of experience in negotiating deals in the financial services industry, I have learned that certain principles apply universally when it comes to pitching to large firms.
Knowing Your Audience
The key to success lies in knowing your audience inside out. It is crucial to gain a deep understanding of the industry and the specific challenges faced by the organization you are targeting. For example, if you are selling risk management analytics to a financial services company, it is important to identify the key decision-makers in the front office – the traders and portfolio managers – and pitch directly to them. By turning them into vocal product champions, you increase your chances of success.
The Role of the Innovation Team
One approach that has proven effective is leveraging the corporate innovation team. Startups offering cross-functional tools or solutions geared towards general employee productivity can find the innovation team to be a friendly entry point. However, for startups in the fintech space that sell products addressing specific divisions within large financial services companies, it may be more beneficial to establish relationships with decision-makers in those divisions directly. The innovation team can still play a valuable role in providing internal introductions and support.
Embracing Adaptability and Nurturing Internal Champions
In the corporate world, change is constant. Startups must remain adaptable and nimble, able to navigate through reorganizations and shifts in priorities. Building strong relationships with internal champions who believe in your product is essential. These champions can advocate for your solution within the organization and help you gain traction.
