Minneapolis software firm Colaboratory plays corporate matchmaker

A Minneapolis software startup is working on a relationship problem: Can corporate marketing and product ventures be matched like couples?

The company, Colaboratory, is led by co-founders Scott Moore and Brian Bispala, veteran Twin Cities executives who hope to automate a process that is typically driven by personal relationships and business networks.

"Right now, it's who the CEO happens to meet or who you know," Bispala said. "There's a lot of value in opening up opportunities for brands that think it's not attainable for them, and bringing servicing data around their audience."

Collaborations can drive millions of dollars in revenue for companies. For instance, Lego Group, the Danish maker of miniature interlocking plastic bricks, partnered in 2019 with streaming giant Netflix on a collectable Lego set themed after the media company's hit series "Stranger Things." Sales for the Lego Upside Down set launched ahead of the show's third season, driving fandom for avid watchers and sales for Lego.

In the past, collaborations were the product of a "who you know" type environment or companies spending large sums of money on marketing agencies and researchers to scope out collaboration opportunities within a market. Colaboratory aims to automate this process and build a workflow management system that lets companies navigate steps to achieving partnerships, Bispala said.

Colaboratory recently launched after a monthslong incubation period at a venture studio in Indianapolis operated by venture investment firm High Alpha, a co-creator and investor in the startup.

Moore, who is chief executive, worked for years in senior marketing roles at large agencies and corporations, including Richfield-based Best Buy Co. and Wynn Resorts. Bispala is a software developer, investor and co-founder of Code42, a Minneapolis cyber security company.

In a dashboard created by the Colaboratory software, users can browse through a database of other brands, seeing which are compatible based on data, preferences and a company's strategic goals. In the system, users can also receive notifications from brands that are interested in a collaboration.

Currently, Colaboratory introduces the two parties, but the platform will eventually be a place where corporations can execute contracts and agreements, Moore and Bispala said.

Early adopters of Colaboratory's software include Fanatics, the Jacksonville, Fla.-based and multibillion-dollar sportswear and sports collectibles e-commerce company; Bloomington-based hair salon chain Great Clips, and Tampa, Fla.-based Big Brothers Big Sisters of America, Moore said.

With Big Brothers Big Sisters of America, collaborations can put the nonprofit's brand in front of adults who may be unfamiliar with the organization's mission to mentor youth, Moore said.

In 2021, corporations in North America were estimated to have spent nearly $300 billion on marketing and advertising, according to market and consumer data company Statista. Moore and Bispala are looking to unlock what lies from 10 to 25% of that annual spending budgeted for experiential ads and marketing deals, such as collaborations, Moore said.

Using technology and data science can help alleviate poor collaborations, which can hurt a brand's reputation, leading to decreases in sales and costly campaigns to regain favor from consumers, Moore said.

It also evens the marketing playing field, as the software is not solely for big-name brands, he said. Large brands that want to obtain consumers in niche markets can collaborate with smaller brands looking to become more nationally known.

And as attention spans become shorter for consumers, companies are increasingly having difficulty getting their attention. Collaborative products are immediately more appealing, Moore said.

"I think what you're seeing with [collaborations], it's not only visually arresting, its conceptually arresting," he said. "A consumer sees the image of two brands coming together and it stops them. That's the hardest thing to do in this marketing environment with all the digital clutter."