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Large Companies Should Embed Startup Founders

December 24, 2011

Small startups are generally better at innovating than large legacy companies. On the surface, it seems like big companies have all the advantages: capital, brand recognition, many employees, marketing, sales and distribution. Yet, most of these companies (Apple excluded) tend to stagnate when it comes to innovation. The explanation involves risk aversion, low tolerance for failure, inability to pivot, lack of entrepreneurial culture and poor creative vision.

For these reasons, it’s hard for large companies to innovate organically. The startup world may slow down in 2012 as some air comes out of the current bubble. This dynamic will open the door for recruitment of startup teams by big companies. Embedding startup founders as innovators inside big companies will become a major trend starting in 2012.

If you are a successful entrepreneur, you should consider this option in addition to the traditional path of seed funding.

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