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How Venture Builders are transforming the Startup model

Bert Farrell

Many people are working differently due to the pandemic and will most likely continue to do so. Unprecedented situations can disrupt the market and bring change like the growth of entrepreneurship, where many are turning to venture builders to get their digital products to market.  

As Alan Watts once said, ‘The only way to make sense out of change is to plunge into it, move with it, and join the dance’ - entrepreneurs and intrapreneur's response to the pandemic was just that.

Many were inspired to innovate by the changes in consumer demand, to either bring new products or services to market or adopt and diversify existing ones. Cloud technology has played a part in this entrepreneurship and intrapreneurship surge as the demand for ‘virtual’ solutions has grown.

What is a Venture Builder (VB)?

If you are a high potential founder with the ambition to create a new technology company from the idea stage or an established business looking to innovate you may have come across the term ‘Venture Builder’. Other popular terms used for Venture Builders are: 'startup studios', 'venture studios' or 'startup factory'.

One thing that is for certain, is the Venture Builder model is becoming an increasingly popular approach, and companies that operate in this arena are providing an unique offering.

The Venture Builder is a mix of the traditional venture capitalist (funding) with the added extra of design, development and commercialisation support focusing on execution and product-market fit from the start. The model involves the venture builder investing in the initial innovative ideas and transforming them into a feasible product with scaling potential with either the high potential founders, the established business or in the case of Startup Studios a CEO/MD recruit.

How Venture Builders create Startups for success

Unlike traditional venture capitalists, venture builders take an active role in day-to-day operations. It is a long term relationship with the Startups, where the Venture Builder provides initial seed or growth capital whilst also providing ongoing support around product-market fit and generating early customer traction.

Venture Builders will work with the startup to create and build the business from the initial concept to product launch and then help grow the company through Series A rounds and beyond.

Due to the level of resources required to create each new venture, they are very selective in which digital ideas to invest in and only select and launch a few initiatives per year.

It is a long road [The long & winding road]

Building a business can be fulfilling yet exhausting. It has been reported around 90% of startups fail (National Business Capital & Services, 2020) - so connecting with a venture builder can reduce the risk of failure. Some of the key advantages of Venture Builders include:-

Getting the product right

Around 34% of those interviewed in the National Business Capital & Services 2020 survey cited that the ‘lack of product-market fit’ was a key reason for a Startups failure, highlighting the critical nature of “getting the product right”.  

The venture builder will work with you on putting the product idea through its paces. The validation process will determine whether the concept will meet the target market needs and if there is a large enough market for it to be a viable business in the long term.

Save time and increased speed to market

As Venture Builders have the infrastructure and required skills in place, they can accelerate the speed at which the product goes to market compared to the entrepreneur working on their own and the challenges of sourcing the quality resources required to create successful Startups.

Collaboration and Expertise

Venture builders have an eco-system and a network of experts ranging from designers, software developers, system architects, industry professionals, strategic coaches to experienced founders - making it an ideal platform for a new Startup to utilise this expertise and experience to create, launch and grow their Venture.

How Zoosh can help

Zoosh is a Cloud Venture Builder, which helps idea stage founders and established brands create new ventures utilising the latest cloud technology. Contact us if you need help turning your idea into reality.

Watch our on-demand webinar 'The Entrepreneur Series from Concept to Seed'