Technical Definitions: What is Symbiotic relationship? Symbiotic relationship Definition.

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Symbiotic relationship Definition

A symbiotic relationship is a relationship between two entities which is mutually beneficial for the participants of the relationship. Thus there is a positive-sum gain from cooperation. This is a term commonly used in biology to explain the relationship between two entities that need each other to survive and prosper. The bumblebee and the flower would be an example. The bumble bee extracts the flower's pollen for protein and its nectar for energy. The bumblebee, while collecting these sources, inadvertently brushes pollen from one flower to another to ensure the flower's reproduction process begins. The bumblebee needs the flower to survive, the flower needs the bumblebee to survive. These are positive sum relationships. Other relationships in biology, especially with respect to the food chain, are not so forgiving, being a zero sum relationship, where one player clearly benefits from the other (typically consumes the other). In this type of relationship, it is still essential that both players (as species not individuals) survive, or the dominant player will lose its food supply, and therefore die. If the foxes kill all the chickens, the foxes die as they lose their source of survival. If the predator kills all its prey, the predator will die.

One can see a symbiotic relationship between Venture Capitalists and Entrepreneurs. Venture Capitalists need early stage investment opportunities. These are provided by entrepreneurs. Entrepreneurs need investment capital to develop their ideas, these are provided by the Venture Capital community. Thus both industries benefit from each others participation, a positive sum game. It is important that each keeps this in perspective, as if one industry tried to exert additional pressure (prisoners dilemma!) then in the short term they may be better off, but the long term survival of the relationship would be put at risk if it meant that the other player may not survive.

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