Why Partnerships Matter for Startups

When investors evaluate startups, one critical but often overlooked factor is the partnership potential. A strong partnership with a larger company can help a startup move beyond one-on-one sales and reach more customers faster. It also builds trust and adds credibility, especially in industries like finance or healthcare.

Working with established companies can provide access to broader customer networks, expert support, and proven infrastructure. This leads to faster innovation, better risk management, and more opportunities to grow.

A Real Example: How BILL Got Partnerships Right

BILL set the standard for B2B2B growth. It first proved its product worked through direct sales. Once it had product-market fit and steady revenue, it started forming partnerships with accounting firms and banks.

Today, companies like HighRadius, Gusto, and Melio are following a similar path, and many financial platforms now offer built-in partnership channels for startups to grow through.

Why Your Startup Should Consider a Partnership

Startups targeting small and midsize businesses (SMBs) often don’t have massive upfront contracts. That’s why a partnership strategy is one of the most effective ways to grow. It’s cost-effective and gives you access to the partner’s customer base and trust.

How to Build a Successful Partnership Strategy

1. Prove Your Value First

Start by building a solid product. Find product-market fit, achieve strong customer satisfaction (high NPS), and generate early revenue on your own. Big companies won’t partner with a startup that hasn’t shown real value.

If your product needs technical integration, use APIs or simple tools to make adoption easy. Enterprises want a partnership that scales—make sure you’re ready.

2. Identify the Right Partners

Ask yourself: Who do your customers already trust? These are your ideal partnership targets. You can start small by working with regional banks or niche platforms. Offer them a good deal in return for their support and feedback.

Keep testing and refining. Over time, this becomes your go-to-market partnership playbook.

Founders Should Lead Early Partnerships

In the early stages, founders should lead the partnership conversations. Senior executives at banks or large firms expect to talk to decision-makers. Once early deals are in place, a product or go-to-market team member can help with follow-ups.

Set Clear Goals with Your Partners

From the beginning, align on success metrics. Define what success looks like, how to measure it, and what happens next if the test goes well.

Start with Low-Risk Outreach

An email campaign is a simple, low-cost way to test a partnership idea. Ask your target partner to reach out to a few hundred ideal customers. Craft the message together. You’ll get valuable feedback early—without needing to build anything complex.

Don’t stress about referral fees at this stage. If you’re doing the heavy lifting, many partners are open to testing without upfront costs.

Pay close attention to how people respond. Click rates are key. Optimize constantly.

Be Patient—Partnerships Take Time

Landing a major partnership often takes two years. And making it successful can take one to three years.

You need someone senior on the partner’s side to stay involved. Without that internal champion, the effort can stall.

That said, don’t fully walk away if a partnership doesn’t close right away. Stay in touch. Timing changes, and you want to be the first they call when they’re ready.