Startup ecosystems exist thanks to corporations and large companies, rather than the other way around. Entrepreneurship enthusiasts often claim that startups are what allows corporates to survive, evolve and grow. It’s actually the exact opposite.
Most startup entrepreneurs, especially in the technology sector, follow their dreams with passion, and work hard to push their baby forward. Their ultimate objective is to exit and get rich. Aside from rare IPOs, the most common exit route for successful startups is to be acquired by a large company. Selling to a big firm is the most appealing conclusion point of an entrepreneurial journey — whatever startup founders may say at the outset. In that sense, large businesses are the raison d’être of startup ecosystems. Without corporate venturing from bigger, more mature actors, the seeds of courage, patience and hard work would not be planted in entrepreneurs’ hearts. Low venturing means few ecosystems, and few ecosystems means low innovation. Corporate venturing is therefore the beginning and the end of a virtuous circle.