VENTURE BUILDING
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The Venture Building is a methodology used to create and scale companies, in which the aim is to develop new startups from scratch. It consists of bringing together a team of entrepreneurs and experts in different areas to identify business opportunities, validate them and create a company around them. The Venture Building methodology is based on the idea that it is not just about creating a company, but about building a sustainable and profitable entrepreneurial ecosystem. In other words, the aim is not only to launch a successful enterprise, but also to develop the skills and knowledge necessary to create more successful enterprises in the future. The Venture Building process includes identifying business opportunities, validating ideas, creating prototypes, building a team, securing funding, building a scalable business model and executing a long-term strategic plan.
Venture Building also focuses on creating a strong entrepreneurial culture, where innovation, collaboration and creativity are encouraged. Venture Building teams are composed of experts in different areas, such as technology, marketing, finance and operations, and work together to realise the company's vision. In a nutshell, Venture Building is a methodology for creating and scaling companies in a sustainable and profitable way, and focuses on building a long-term entrepreneurial ecosystem.
Advantages of venture building for entrepreneurs
Venture Building offers several advantages for entrepreneurs looking to create and scale a business in a sustainable way. Some of the advantages are:
- Validation of ideas: With the Venture Building methodology, business ideas can be validated before investing time and resources in them, reducing the risk of failure.
- Access to a diverse team: Venture Building allows entrepreneurs to work with a team of experts in different areas, which helps to create a more complete and scalable company.
- Support in the creation of prototypes: The Venture Building methodology focuses on prototyping and testing, allowing entrepreneurs to iterate and improve their products or services before launching them on the market.
- Access to finance: By working with a team of experts, entrepreneurs can more easily obtain funding from investors interested in supporting potential start-ups.
- Reduction of time to market: By using the Venture Building methodology, the process of creating and commercialising a company can be accelerated.
- Focus on scalability: The Venture Building methodology focuses on the creation of a scalable and sustainable long-term business model.
The Venture Building offers important advantages for entrepreneurs, such as validation of ideas, access to a diverse team, support in prototyping, funding, reduced time to market and a focus on scalability. Venture builders are very similar to incubators. The difference is that the project does not start from an entrepreneur but from the management team of the venture builder, who creates the company and provides it with the necessary resources. Including the management team.
- The idea and the initial plan are from the venture builder.
- The VB selects the entrepreneurial team, by paying them normally in shares and salary.
- Performs the first investments, pays salaries of employees and provides all the necessary resources.
- They seek to investment required for the growth of the company.
- The most of the capital islogically, of the VB. They usually distribute up to 30% among the initial management team depending on the terms of employment.
Incubators (see+ TIP): help entrepreneurs with ideas or products in very early stages and accompany them with the necessary resources until there is a real product on the market.
Venture Builders: do the same as the incubators but from own ideas looking for entrepreneurs to develop them.
Accelerators (see+ TIP): help fundamentally with mentoring and training, a grow and find investment to projects "real".already in existence. (MentorDay Acceleration Programme)
The Spanish ecosystem has more than thirty vehicles aimed at thinking and developing innovative and disruptive businesses, which in the ecosystem is called Venture Builder, formerly also known as company builder. A type of agent that arrived in Spain thanks to Antai in 2013 and now plays a key role in the national startup network. 7R Ventures, Sonar Ventures, Ánima Ventures, Tecnalia Ventures, Nuclio and Antai were some of the first to be born.
The Venture Builder is a startup factory, whose purpose is to adapt ideas or business models that have worked in other markets to replicate them in the local market. These vehicles usually have a very high percentage of each startup (much higher than the accelerators) that can reach 100% of the company they create, and can be as high as 100% of the company they create.The new company's entire organisational chart is comprehensively analysed: from the selection of management positions to the business idea to be developed, or the location of the offices (which is usually provided by the vehicle itself). A Venture Builder is a company factory. It has a team that studies trends and novel initiatives in other geographies, and creates a business model adapted to the target markets.
For the Venture Builder, the key element in creating the company is talent, apart from the in-depth analysis of ideas and market testing. This translates into intense work in the successful search for co-founders to help launch the project as a whole, where, depending on the different strategies of each venture builder, each one decides what percentage of capital policy is in the hands of the co-founders. The Venture Builder is an essential co-founder in the startup (+), as it takes it on as its own from the outset, providing a range of legal, administrative, strategy, financing and business development expertise and services, allowing the co-founders who join the company launched by the Venture Builder to focus on product and business development.
Despite the fact that incubators (+) y accelerators (+) also fulfil this mission of promoting a project and helping to turn it into a profitable business, the venture builder has the peculiarity of being an active and key part in the foundation of the startup or project.
Its defining characteristics are as follows
- It does not select external projects.
- Define the business idea to be developed.
- Look for the founding team.
- Validate the business until it functions autonomously.
- Owns a large part or all of the start-up's capital.
CORPORATE VENTURE BUILDER
Within the Venture Builder model there are also various categories, such as the Corporate Venture Builder, which acts as a tool that allows large companies to diversify their business by launching new startups in the market. These vehicles turn the launch of new startups into another business process, so that it can be carried out in a recurring, orderly, efficient and measurable manner, maximising its impact and results. In terms of innovation, until recently companies had only two options: R&D or M&A. Then the question was when to buy. The emergence of Corporate Venturing changes the question to when to build, when to partner, when to invest and when to buy. In short, companies and funds are increasingly developing and leveraging vehicles that help them to broaden their focus and more precisely manage their opportunities in the entrepreneurial and innovative ecosystem: Venture Building allows to build, Venture Client to partner and Corporate Venture Capital to invest.
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TASK
Now that you know this formula for becoming an entrepreneur, reflect on yourself:
- What advantages and disadvantages does a venture builder offer me in order to start my own company?
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