Ask HN: A startup's first collaborations with large corporations

2 points

7 years ago

There are plenty of high-level articles on startups and corporates collaborating [1,2], but how to structure these partnerships? What terms are common? What variables are there to consider (revenue sharing, equity, royalties, checkpoints, etc.)? Are there detailed examples available?

It'd be great to learn more about setting up an initial partnership that could evolve into something bigger. For example, a startup offering an EHR service deploys their product to an isolated part of a large healthcare system, and after some validation the deal evolves into more revenue and a system-wide distribution. How are the details of this type of partnership set up? What would an example term sheet look like? This type of pilot-first arrangement also seems to be common in pharma.

[1] https://www.asianscientist.com/2019/04/features/sginnovate-deep-technology-corporates-startups-collaboration/

[2] https://assets.kpmg/content/dam/kpmg/pdf/2016/04/On-the-road-to-corporate-startup-collaboration-16-12-2015.pdf