Startup-corporate partnerships provide mutual benefits by combining startups’ innovation with established firms’ resources and processes. However, despite these clear advantages, initiating and nurturing such partnerships is often fraught with obstacles. Our research provides evidence-based insights for startup founders and corporate managers on how these partnerships unfold. Specifically, we identify two distinct pathways that can serve as a practical starting point for corporate managers. Also, we pinpoint three key “pathbreakers” in the formation process and offer strategies to effectively manage them. In addition, the article highlights the cumulative signals that both parties can use not only to create the potential for partnership but to bring the collaboration to fruition. This guidance to managers seeking to establish or engage in such partnerships includes outlining key factors to consider, potential challenges that may arise, and actionable strategies to address them.