Large companies must identify and track disruptive ExOs with the aim of observing, partnering with, investing in and/or acquiring them. And they must do so as early as possible to lower the investment threshold needed and to pre-empt the competition. The perfect moment to engage with an ExO is when the startup has real traction and is just emerging as a market leader. A classic example of such timing took place in 2005 when Google bought YouTube for $1.6 billion.
