Venture Builders: Difference between revisions

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"The venture-building philosophy is a rising movement in the tech and startup industries. The most notable venture builders include Obvious Corp, which spun off Twitter and Medium; Mark Levin’s HVF (Hard Valuable Fun), which produced Affirm.com and Glow.com; Betaworks, whose portfolio includes Instapaper and Blend, and Germany’s Rocket Internet (PayMill, Jumia, FoodPanda, etc.). "
"The venture-building philosophy is a rising movement in the tech and startup industries. The most notable venture builders include Obvious Corp, which spun off Twitter and Medium; Mark Levin’s HVF (Hard Valuable Fun), which produced Affirm.com and Glow.com; Betaworks, whose portfolio includes Instapaper and Blend, and Germany’s Rocket Internet (PayMill, Jumia, FoodPanda, etc.). "
(http://venturebeat.com/2015/01/18/how-venture-builders-are-changing-the-startup-model/)
=Discussion=
Ali Diallo:
"The Venture Building Ecosystem: An On-Demand Network
Another important characteristic of a venture-building company is the presence of a strong sharing network capable of unifying a vast array of resources in the most effective way. Venture builders rely heavily on the quality and the dynamics of their networks and thus need to figure out which combination of resources will produce the most explosive results in order to capture market share quicker than its competitors.
The challenge lies in the managing partners’ ability to federate all these resources under one governing body that can build ventures in a very focused and dedicated way. The Venture Builder’s network must act as a pool of instantly available resources that create an internal culture of trust, deal flow, attentiveness, and determination.
This network-first model is certainly different from the standard startup business model, and there is a good reason for it: As the entrepreneurial world adapts to the ever-changing needs of consumers and corporate clients, startups and organizations will need to evolve and share resources under a unified business model in order to remain competitive and to respond to their clients’ needs faster.
As you probably noticed, the venture builder model is close to that of the venture capital firm: It funds ventures, builds a portfolio, and looks for successful exits. However, it is also much more involved in the operational aspect of its ventures than a traditional VC. In some cases, it goes as far as pulling all the necessary resources from its vast connection network to crush its competition and scale extremely fast. This “Damn the torpedoes, full speed ahead” operational technique, which is highly reminiscent of Uber’s business strategy, proves that venture builders are first and foremost gifted entrepreneurs and savvy business developers who don’t simply pour money into ventures and watch them grow. They implement aggressive business management techniques that benefit all the ventures that are part of their network.
You may wonder what an ever-growing venture building ecosystem will lead to. I believe the ultimate goal of the venture builder is to exhibit characteristics of a monopoly. This is a natural evolution of any organization that combines unlimited capital, (and) ever-expanding clusters of ecosystems."
(http://venturebeat.com/2015/01/18/how-venture-builders-are-changing-the-startup-model/)
(http://venturebeat.com/2015/01/18/how-venture-builders-are-changing-the-startup-model/)




[[Category:Business]]
[[Category:Business]]

Latest revision as of 12:51, 26 January 2015


Description

Ali Diallo:

"If you haven’t yet heard of venture-builders — also called tech studios, startup factories, or venture production studios — let me introduce them to you: They’re organizations that build companies using their own ideas and resources.

Unlike incubators and accelerators, venture builders don’t take any applications, nor do they run any sort of competitive program that culminates in a Demo Day. Instead, they pull business ideas from within their own network of resources and assign internal teams to develop them (engineers, advisors, business developers, sales managers, etc.).


...


In its most basic form, the venture-building company is a holding company that owns equity in the various corporate entities it helped created. The most successful venture builders are, however, much more operational and hands-on than holding companies: They raise capital, staff resources, host internal coding sessions, design business models, work with legal teams, build MVPs (minimum viable products), hire business development managers, and run very effective marketing campaigns during their ventures’ pre- and post-launch phases.


...


There is a deep correlation between the startup ecosystem and the venture-building universe: The venture-building company is similar to a high-paced tech startup, where the product is the venture, the prototype is the business model, and ‘shipping code’ means perfect and timely execution. In this regard, the venture builder is essentially a startup that builds startups." (http://venturebeat.com/2015/01/18/how-venture-builders-are-changing-the-startup-model/)


Examples

Ali Diallo:

"The venture-building philosophy is a rising movement in the tech and startup industries. The most notable venture builders include Obvious Corp, which spun off Twitter and Medium; Mark Levin’s HVF (Hard Valuable Fun), which produced Affirm.com and Glow.com; Betaworks, whose portfolio includes Instapaper and Blend, and Germany’s Rocket Internet (PayMill, Jumia, FoodPanda, etc.). " (http://venturebeat.com/2015/01/18/how-venture-builders-are-changing-the-startup-model/)


Discussion

Ali Diallo:

"The Venture Building Ecosystem: An On-Demand Network Another important characteristic of a venture-building company is the presence of a strong sharing network capable of unifying a vast array of resources in the most effective way. Venture builders rely heavily on the quality and the dynamics of their networks and thus need to figure out which combination of resources will produce the most explosive results in order to capture market share quicker than its competitors.

The challenge lies in the managing partners’ ability to federate all these resources under one governing body that can build ventures in a very focused and dedicated way. The Venture Builder’s network must act as a pool of instantly available resources that create an internal culture of trust, deal flow, attentiveness, and determination.

This network-first model is certainly different from the standard startup business model, and there is a good reason for it: As the entrepreneurial world adapts to the ever-changing needs of consumers and corporate clients, startups and organizations will need to evolve and share resources under a unified business model in order to remain competitive and to respond to their clients’ needs faster.

As you probably noticed, the venture builder model is close to that of the venture capital firm: It funds ventures, builds a portfolio, and looks for successful exits. However, it is also much more involved in the operational aspect of its ventures than a traditional VC. In some cases, it goes as far as pulling all the necessary resources from its vast connection network to crush its competition and scale extremely fast. This “Damn the torpedoes, full speed ahead” operational technique, which is highly reminiscent of Uber’s business strategy, proves that venture builders are first and foremost gifted entrepreneurs and savvy business developers who don’t simply pour money into ventures and watch them grow. They implement aggressive business management techniques that benefit all the ventures that are part of their network.

You may wonder what an ever-growing venture building ecosystem will lead to. I believe the ultimate goal of the venture builder is to exhibit characteristics of a monopoly. This is a natural evolution of any organization that combines unlimited capital, (and) ever-expanding clusters of ecosystems." (http://venturebeat.com/2015/01/18/how-venture-builders-are-changing-the-startup-model/)