True value co-creation initiatives on Business Model Innovation for Sustainability (BMIfS) are essential for universities and Small to Medium Enterprises (SMEs) for addressing the challenges created by the wicked problem of sustainability. Currently, however, such inter-organizational collaboration initiatives are understudied. This article, which examines two inter-organizational collaboration initiatives involving two universities and two SMEs that were engaged in true value co-creation in BMIfS, makes a two-fold contribution. The article unravels the opportunities and risks associated with two true value co-creation BMIfS initiatives (between university students and SME managers) and proposes a set of key principles underpinning the success of inter-organizational collaboration for true value co-creation in BMIfS.