A spin-off is merely a startup spawned by a mature parent (company), and conventional logic would dictate that it has a survival advantage over the lowly startup. Yet spin-offs seem to most often fail to launch in the real world. I was part of one myself a few years ago, and felt the pain, so the phenomenon has intrigued me ever since.
Corporate Spin-offs Rarely Win Against Startups
Posted by
martinzwilling under Startups
From http://blog.startupprofessionals.com 4228 days ago
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4227 days ago
I'm not sure whether corporate spin-offs are startups in the truest sense of the word. There is a different dynamic, probably an established culture, and, almost certainly, a different set of resources. Corporate spin-offs may be good at testing the waters of a new market for their corporate parent, but I suspect there are major differences in the amount of innovation possible.