Secured finance companies partnering with startups, directly or via corporate venture studios, can offer cost-effective solutions by leveraging their agility and innovative spirit. These startups can help established companies to reduce their costs and improve their bottom line by providing unique, tailored solutions that are often an order of magnitude more affordable than those offered by agencies.
For instance, a startup that specializes in cybersecurity solutions could partner with a secured finance company to offer cutting-edge data security services that would otherwise be an extremely lengthy undertaking and bordering on being cost-prohibitive to integrate by an established company. By using innovative technologies and streamlined processes, the startup could offer data security services at a significantly lower cost than larger cybersecurity companies. This would allow the established company to reduce its costs and improve its bottom line while still ensuring the security of its data.
As an example, Harbr partners with the pioneering confidential compute startup Cape Privacy which enables Harbr to provide state-of-the-art data security on its processes for its customers, which in turn contributes to building the highest level of trust for their clients.
Similarly, startups in the fintech space could partner with secured finance companies to offer cost-effective risk management solutions. For example, a startup that offers aggregated risk data solutions could partner with a secured finance company to provide a more affordable and efficient origination system. By leveraging its expertise in process automation and its ability to quickly adapt to changing market conditions, the startup could offer a more cost-effective solution than larger, more established point-solution companies.
Harbr partners with Creditsafe/Equifax to provide an exclusive and free business decisioning dataset, called Snapshot that helps streamline underwriting prescreening with real-time risk-scoring data as part of Harbr’s origination qualification process.
Working with startups can also provide secured finance companies with access to a diverse talent pool that they may not have had otherwise. Startups often attract talented individuals from diverse backgrounds, bringing unique perspectives and skillsets to the table. These individuals may have experience in niche areas or innovative approaches to problem-solving that can benefit established companies.
As an example, Harbr investor and hybrid venture studio Highline Beta worked with global manufacturing leader Avery Dennison, to develop a groundbreaking pilot accelerator program that partners with startups to address a number of key challenges focused on sustainability.
The startup’s team may include individuals with backgrounds in materials science or environmental engineering who can bring expertise in developing sustainable materials and packaging solutions. By collaborating with the startup, the established company can tap into this diverse talent pool and leverage the startup’s knowledge and resources to create innovative and environmentally-friendly packaging options.
Working with startups can also help secured finance companies to foster a culture of innovation and creativity. Startups are often known for their entrepreneurial spirit and willingness to take risks, and by partnering with them, secured finance companies can bring this mindset into their own organizations. This can encourage employees to think outside the box, take calculated risks, and come up with new and innovative ideas.
These kinds of partnerships are often mutually beneficial arrangements for both parties, and it is a trend that is likely to continue as startups become an increasingly important part of the business landscape, as it allows startups to gain valuable experience and exposure while offering cost-effective and innovative solutions to secured finance companies.
