So, a big company reaches out, and there’s a lot of excitement within the leadership team as you try to figure out potential outcomes.
From the perspective of the larger corporation, there are several reasons for their interest. First, consider whether this was a proactive reach-out from them or a response to an inquiry your company initially made.
If it was a response to your outreach and they replied, that’s a positive sign. Companies receive numerous requests, and most go unanswered. You’ve connected with the right person who found enough interest to respond. If they schedule a second meeting after the initial one, it’s a very strong indication that what you’re discussing resonates with them.
If a large corporation reaches out to you out of the blue, there’s a reason for it. Typically, something they discovered about your company sparked their interest—it could be a news article, a keyword search on PitchBook, word of mouth, a shared partner, etc.
The higher the rank of the person reaching out, the more promising it is. If a VP level or higher contacts you, it’s a very good sign of their interest. However, in most cases, the initial contact will come from someone more junior. If a second or third meeting is scheduled and more senior members, especially the head of a business unit, become involved, that’s a very positive sign.
The department within the company that reaches out can also provide clues about their motives (though you can always ask directly). If it’s someone from the business development or technical group, they are typically interested in a partnership. If it’s from the ventures team or corporate development, they might be considering an investment. If the corporate development team reaches out and the company has both a ventures team and corporate development team, it’s most likely M&A interest.
However, the first meeting is typically less significant than subsequent meetings in terms of gauging their interest level. These teams might make dozens of inquiries weekly. It’s the follow-up meetings they request that indicate higher levels of interest.
In these meetings, how you position your product, demonstrate your traction to date, and outline your overall strategy are crucial. Every discussion matters. If you find yourself in such a situation, feel free to give me a call—I may be able to provide additional guidance.
Silicon Valley Strategy & Tax 