What makes a good startup? How can you see which ones have potential?
As a talent scout and having lead global recruitment team in the past, I see a lot of similarities between talent acquisition and startup search. Here are some insights from behind the scenes of our latest project’s selection phase where our team screened over 3000 startups based on the needs of Bankia, BBVA, Sanitas, Santander and Sparklab of Nationale Nederlanden among others.
Understanding the business needs
Both in recruitment and in startup scouting, it all starts from understanding the business needs. What solutions are the financial institutions looking for right now? What strategy is behind those needs and why is that important for them? And the question everyone is asking today – how will the world look different after Covid-19 pandemic?
The better you understand what your partners need and what kind of technical solutions could answer that, the better the results.
For the latest bootcamp, we had a wide variety of different themes in scope: the banks and insurance companies were looking for practical applications of blockchain, traceability, smart contracts, trade finance and tokenization of assets.
On the other hand, big themes were also financial wellbeing and education, accessibility and preventive health care solutions for insurance and healthcare companies.
New approaches to security and fraud prevention continue being hot topics. And my inner HR was happy to see the rising interest in innovative B2B2E benefits and solutions for the employees. Also, while the covid-19 impacts the whole world, supporting the clients in this changing situation and beyond has become an additional priority.
Finding the matches from millions
After having a clear direction, it’s a mix of creativity and hard work. Finding the best matches means – not only marketing and promotion – but also hunting the best finsurtech startups around the world for each theme. In practice this means advanced searching, testing variations of keywords, going through thousands of web pages, identifying potential, analyzing the solutions.
Industry knowledge, partners, wide networks and data crunching super search tools are a must. Not forgetting looots of coffee to keep the engines running!
Identifying the high potential
For the last bootcamp we contacted over 1500 potential startups and received over 400 applications from over 60 different countries. During 2020 we’ve so far had 5 online pitching days, with dozens of startups.
The selection is done carefully. The criteria that we use in the assessment phase is not only related to the pitching of the technical solution, scalability and past performance. It’s about the whole team.
In HR terms we talk about identifying high potential (HiPo) talent: SHL’s and Gartner’s research and the traditional SHL Model of High-Potential talks about aspiration, ability and engagement. Harward Business review refers also to the importance of a positive drive.
What we look is: does this group of individuals have the mindset, solution and skills that are needed for being successful to work with us and our partners? Besides top-notch business ideas and technical expertise, a good balance of emotional and social skills is important. Learning agility, problem solution and negotiation skills are highly valued in collaboration and future partnerships.
Also, the roles and dynamics of the team members are important. What kind of expertise does the team have? Which areas do they need to strengthen?
After introducing the best startups to our partners and initiating the collaborations starts the real journey – the part that often causes most challenges in startup collaboration. Bureaucratic regulations, long decision-making processes and different cultures and ways of working might cause grey hair at the beginning for both the financial institutions and the startups.
Just like onboarding new team members, this is the critical part and there should be a good plan and resources for both sides for working together.
With an inspirational accelerator program and coaching, we can help in this making businesses grow and collaboration prosper. As long as there’s curiosity and desire to learn from each other and motivation towards common goals, we are on the right path.
What else do you value in collaboration? What solutions are important for you right now? I’d be glad to share thoughts with you – let’s connect in LinkedIn in/virpijalonen or you can find me from Telegram as Viivinen.