We are Venture Builders

Read 2082 times Last modified on Monday, 03 August 2015 13:16

There is a new startup business model that gains increasing popularity, especially in the U.S while the hype breaks out more slowly in Europe and the rest of the world. For long there have been nurture programs, to support entrepreneurship in its early, most vulnerable phases. While Incubators generally speaking provide the external support for startups (like office space), Accelarators offer short term programs in order to facilitate a successfull investor pitch.


Next to these established models, there is now a new kind: Venture Building.
Contrary to, for example Rocket Internet, who primarily relies on already existing business models adjusted to new markets, Venture Building focuses purely on innovation.


The idea is that Venture Builders work together with mainly young entrepreneurs in order to solve severe market problems and turn them into startups. For this purpose the focus lays on the startup-buildind team and the support system around it. Thus, the first step is to seek motivated, skilled and creative people who have the drive to become entrepreneurs. The future entrepreneurs do not necessarily have their own business idea yet or peers they want to build a startup with.


 Another crucial aspect is the long-lasting relationship between the Venture Builder who provides the experience and market expertise needed and the entrepreneurs building the startups. Opposed to Incubators and Accelarators, which are only short-term oriented, Venture Builders want to provide support for a lifetime. Their program is designed for the different phases of startup building and growth, offering individual adjustments on the way if needed. Of course this is also due to the equity stakes hold by the Venture Builder in the future startups.


The core of the business is the shared resources such as the spreading of legal and financial knowledge. In general Venture Builders profit from compressed and repeatable processes, which make the model more efficient. But most of all, they have the natural desire to create something new out of nothing. Build a company in order to solve an existing problem. Venture Builders are simply passionante about entrepreneurship.


Even within the venture builders model different approaches and types exist. While some firms rely on their internal network to validate already existing ideas, other companies have an application system to attract external talent. Already knowing the future entrepreneurs has the advantage of being able to assess skills, knowledge and potential more easily. In this way the risk of failure based on mismatching (team) characteristics is minimized. Obviously, a personal network only reaches so far. Thus, often it is necessary to reach out and find that Hipster with the coolest design skills or the Developer who knows how to turn thoughts into actual software.


As can be seen Venture Builders fill a niche within the existing business models regarding startup building. First of all, the focus is on young, skilled entrepreneurs. Secondly, these founders do not need to bring in their own ideas or building team. Thirdly, long-term investment means long-term commitment. By combining these aspects and adding the experience and expertise from multiple-time entrepreneurs/advisors and financial experts, the startup building risk can be mitigated. In this way Venture Builders offer support from the beginning phase of the startup to the exit of an established company.



Jana Rautenberg

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