So, what is a VENTURE BUILDER?
A venture builder is an organization that builds companies using their own resources. It works with entrepreneurs and businesses’ CEOs to provide support and funds to help them grow a business and generate value from the ground up. The venture building model helps startups and organizations grow by combining the expertise of seasoned entrepreneurs with the desire to transform ideas into real opportunities, working together as co-founders and sharing a common objective. The model allows for organizations to become more connected to the startups and therefore more effective in their businesses.
How does it work?
Venture building companies are composed of experienced entrepreneurs who know how to grow usinesses. The start-ups have access to important resources such as office space, direct support in legal, finance, payroll, advertising and communication services, among others.
The venture builder model include:
- Identifying business ideas;
- creating teams;
- brand recognition;
- access to capital;
- lead the venture;
- share services between the ventures.
Differently from the traditional venture capital model, venture building accelerates your company’s growth as the startups become part of the organization’s overall strategy, creating opportunities and profits.
And what is a corporate venture builder?
If innovation is the base for continuous growth post COVID-19 crisis, a McKinsey & Company survey, released in July 2020, says that only “21% [of the businesses] have the expertise, resources, and commitment to pursue new growth successfully” after this period.
It proves that only a low number of organizations can implement radical transformations that have effective impact on their strategies in the long term. And that’s what start-ups can do, being more adaptable and agile in bringing innovative solutions.
So, essentially, that’s what a corporate venture builder does: it takes an organization’s problem and develops a start-up to solve it, utilizing resources to grow and scale while the organization gets innovative technologies to commercialize their products, services, or ideas.