While big companies have size, resources, and reach, the startup holds advantages of their own.

Here’s a list of the startups’ advantages:

Focus – the startup can focus all its energy and resources on one thing.

Big companies have an existing product line, team, and commitments they must maintain 

They cannot focus solely on one thing.

Speed — the startup can move fast in building and iterating on a product.

Big companies must coordinate teams across department lines.

They cannot move fast given their structure, culture, and workload.

No legacy products — the startup has no existing products to defend.

Big companies have legacy products they must support and sell.

In most cases, they must work around their current product lines.

No brand risk — the startup has no historical brand to maintain.

Big companies have a brand and must protect it.

They cannot take on risky startup products as it puts their reputation at risk.

While big companies have a brand, scale, and resources, the startup is particularly well-positioned to pursue new products with disruptive technologies.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.
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Disclaimer:
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.