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> First off, large companies have different priorities in pursuing these deals than small startups. The large company might be interested in the service offered

> First off, large companies have different priorities in pursuing these deals than small startups. The large company might be interested in the service offered because it will generate revenue or improve efficiency. On the other hand, the execs might be trying to figure out if your company is any good so that they can buy it. In most cases, the startups see this Deal as the only thing that matters. That creates mismatched expectations and goals that can’t be bridged. I'd also point out that this can be a massive benefit for a startup. Consider this: Microsoft would not be where they are today if they didn't take advantage of IBM not caring about exclusive rights to MS-DOS. Microsoft correctly banked on the idea (whether they fully knew it or not, I don't recall) that IBM did not have a firm grasp on their technology, and that IBM clone PCs would soon take over the world. Another example. George Lucas was able to convince 20th Century Fox to give up merchandising rights to Star Wars. 20th Century Fox and IBM both had different priorities at the time, allowing the small player to win big. The trick, it seems, is to make a deal that seems like a Small Deal with the corporation (they will readily agree with it) that is actually a Big Deal if the startup has a way to leverage it.

InclinedPlane 9y ago
Look at a company like Weta Workshop. A New Zealand based effects studio that worked on a couple movies of middling success in the '90s as well as the Xena and Hercules TV shows, otherwise they had no significant reputation in the world. But they had a working relationship with Peter Jackson and he used them during the early 2000s in the making of the Lord of the Rings films. They had to stretch their capabilities and work at a level they never had before, but doing so propelled them onto the national stage. Now everyone knows about Weta and they've worked on dozens of worldwide blockbusters since then. Without that "big deal" they would likely be just an "also ran" local effects studio doing a few movies here and there despite their high levels of technical excellence and innovation.
- bonesss 9y ago
  To bridge that example with how the article is discussing the term: LOTR was a huge deal for Weta, but as per the articles framing, it wasn't "The Big Deal" -- Weta did The Right Thing by creating a valuable productive business in and of itself and letting large deals come later. Weta was not in a holding pattern ignoring their profitability hunting for a white whale that would make their business make sense. They created a business that made sense, built a reputation, and were then positioned to take on a larger project that catapulted them. Without the large deal they would still be a business, a profitable entity, and their interests would be aligned with their customers. An apples to apples comparison would be if Weta had ignored Xena because they were flirting with Disney hoping to land an exclusive Star Wars contract.
gcb0 9y ago
both microsoft a george lucas had connections to the boards of ibm and fox. it's hardly examples applicable to the real world, and both of those most likely involved some sort of insider winning something on the side. one have to be very naive to attribute this to good negotiations.
- icebraining 9y ago
  What was the connection between MS and IBM?
  - TAForObvReasons 9y ago
    Bill Gates Mother: https://en.wikipedia.org/wiki/Mary_Maxwell_Gates https://en.wikipedia.org/wiki/Mary_Maxwell_Gates > Beyond the Seattle area, Gates was appointed to the board of directors of the national United Way in 1980, becoming the first woman to lead it in 1983. Her tenure on the national board's executive committee is believed to have helped Microsoft, based in Seattle, at a crucial time. In 1980, she discussed her son's company with John Opel, a fellow committee member and the chairman of International Business Machines Corporation (IBM). Opel, by some accounts, mentioned Mrs. Gates to other IBM executives. A few weeks later, IBM took a chance by hiring Microsoft, then a small software firm, to develop an operating system for its first personal computer.
    - icebraining 9y ago
      Thanks.
    - cwyers 9y ago
      So she was in position to make an introduction. She wasn't even on IBM's board, not like it was nepotism or something. Yes, having connections helps. There's many ways to get them (and if you're a startup taking VC, your investors likely can make those kinds of introductions). You still have to make a good impression once you're introduced.
      - 9y ago

InclinedPlane 9y ago

Look at a company like Weta Workshop. A New Zealand based effects studio that worked on a couple movies of middling success in the '90s as well as the Xena and Hercules TV shows, otherwise they had no significant reputation in the world. But they had a working relationship with Peter Jackson and he used them during the early 2000s in the making of the Lord of the Rings films. They had to stretch their capabilities and work at a level they never had before, but doing so propelled them onto the national stage. Now everyone knows about Weta and they've worked on dozens of worldwide blockbusters since then. Without that "big deal" they would likely be just an "also ran" local effects studio doing a few movies here and there despite their high levels of technical excellence and innovation.

bonesss 9y ago
To bridge that example with how the article is discussing the term: LOTR was a huge deal for Weta, but as per the articles framing, it wasn't "The Big Deal" -- Weta did The Right Thing by creating a valuable productive business in and of itself and letting large deals come later. Weta was not in a holding pattern ignoring their profitability hunting for a white whale that would make their business make sense. They created a business that made sense, built a reputation, and were then positioned to take on a larger project that catapulted them. Without the large deal they would still be a business, a profitable entity, and their interests would be aligned with their customers. An apples to apples comparison would be if Weta had ignored Xena because they were flirting with Disney hoping to land an exclusive Star Wars contract.

gcb0 9y ago

both microsoft a george lucas had connections to the boards of ibm and fox. it's hardly examples applicable to the real world, and both of those most likely involved some sort of insider winning something on the side. one have to be very naive to attribute this to good negotiations.

icebraining 9y ago
What was the connection between MS and IBM?
- TAForObvReasons 9y ago
  Bill Gates Mother: https://en.wikipedia.org/wiki/Mary_Maxwell_Gates https://en.wikipedia.org/wiki/Mary_Maxwell_Gates > Beyond the Seattle area, Gates was appointed to the board of directors of the national United Way in 1980, becoming the first woman to lead it in 1983. Her tenure on the national board's executive committee is believed to have helped Microsoft, based in Seattle, at a crucial time. In 1980, she discussed her son's company with John Opel, a fellow committee member and the chairman of International Business Machines Corporation (IBM). Opel, by some accounts, mentioned Mrs. Gates to other IBM executives. A few weeks later, IBM took a chance by hiring Microsoft, then a small software firm, to develop an operating system for its first personal computer.
  - icebraining 9y ago
    Thanks.
  - cwyers 9y ago
    So she was in position to make an introduction. She wasn't even on IBM's board, not like it was nepotism or something. Yes, having connections helps. There's many ways to get them (and if you're a startup taking VC, your investors likely can make those kinds of introductions). You still have to make a good impression once you're introduced.
    - 9y ago