Here are a few ways to evaluate a startup:
Determine how mature the startup is and what type of solution it’s offering
Request a prototype demonstration
Talk to the startup’s incubator
Evaluate the startup’s tests of its solution
Ask for customer reviews or other references
Evaluate the financial information available about the startup
Compare the startup against its direct and indirect competitors
Unfortunately, large companies don’t always have the in-house skills needed to evaluate a startup operating outside their fields of expertise (in fields that often present opportunities for innovation). For example, if your organization has no expertise in artificial intelligence, how can you determine how far along a particular solution is, or whether a startup’s team has the skills to complete the project? Faced with such a situation, many companies call on external resources.
It’s important to consider the advances made and to be as precise as possible about the work that remains to be done, as innovation brings its share of uncertainty and it can be difficult to estimate how long it will take to complete work that has never been done before. That’s why it’s advisable to collaborate with a resource that can conduct a serious assessment of the work that has already been done and the startup’s ability to complete the project.
The initial users of solutions developed by startups are often technology enthusiasts, typically R&D engineers. However, to ensure that the solution meets the needs of the product’s users, it’s important to check whether the technology can be adapted to their needs within the allotted time. Strangely enough, corporate innovation programs often underestimate this issue of achieving a technological solution that meets users’ needs.
In short, the above considerations can be evaluated by an external resource. For example, a Deeptech startup incubator with an open innovation program can provide an accurate assessment of a startup’s potential. At your end, the first step is to assess how the technology would fit into your innovation strategy and whether it will meet users’ needs.