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Make the Big Company qualify themselves to back to you. "Why would we want to do something together?" "How exactly does your operation/platform work?". "What exactly are your plans for our stuff?" Get a deal done before technical due diligence. Here's a solid read on Prizing by Oren Klaff > http://pitchanything.com/book/
There are some large companies that get deep into technical due diligence, and go as far as signing letters of intent, only to take the ideas and implement the tech themselves. Watch out. Also, NDAs are almost unenforceable. If you don't trust the people across the table, don't share sensitive information.
Demo'ed their tech to "big co" in the hopes of partnership/acquisition.. nothing came of it then 6 months later Big Co. released their own version of the exact same thing...
Be careful.
Here is a suggestion, tell them to state their intentions or go away. Once they state their intentions tell them they have to sign a Memorandum of Understanding about what you're going to talk about and if they walk away it will cost them $X million (pick a number that would be able to resolve your debts and pay off any investors with a slight return). What ever you do, do NOT be lured into thinking they are thinking…
Lastly, DO NOT get distracted from your launch date. Tell them you are currently on the critical path to launch (do not disclose the date just a ballpark). Explain that these discussions cannot distract you from that mission and should the company want to delay that you'll need something in writing. If they are serious they will ask if you could delay the launch or probe for more details. Again, get a deal in writing before agreeing because in US and Canada a verbal agreement is binding... (everything but real estate)...
2. Reduce the number of people on the other side interacting with you. In large companies too many people jump on these types of opportunities and will burn a lot of your time. Identify one senior person from the company that you have a good gut feeling about (preferably towards the end of their career) and make one of your team work on a plan closely together with them. Let the other two work ahead on your original plan.
3. You as a startup have one agenda - you want to make it big together - remember that in large corporations each individual comes with their own agenda, most often not aligned with each other. And also remember that large corporations, especially when struggling with innovative competitors, will try to belittle smaller companies and negotiate you down.
Here is a suggestion, tell them to state their intentions or go away. Once they state their intentions tell them they have to sign a Memorandum of Understanding about what you're going to talk about and if they walk away it will cost them $X million (pick a number that would be able to resolve your debts and pay off any investors with a slight return). What ever you do, do NOT be lured into thinking they are thinking…
If you're seriously oriented towards an aquire-hire, an option can also be to look for an experienced corporate dev to join you as an advisor or as part of the team.
1. If the company has a track record of acquihires, talk to one of these companies. If they have not got a track record of working with startups, it is very rare that they can get it right the first time. 2. Reduce the number of people on the other side interacting with you. In large companies too many people jump on these types of opportunities and will burn a lot of your time. Identify one senior person from the co…
I don't understand this statement. Doesn't that mean the "acquihired" are part of $BIGCOMPANY?
This is a great opportunity....to raise $$ from investors. Every startup knows that they have to convince investors "why to invest" but fewer know that they also have to convince them "why now?" Having a company sniffing around the fringes is a big motivating factor for potential VCs. It also can be a serious motivator for the "big company" if there are VCs interested as well. They willingness to acquire you at a pre…