When investing in startups, venture builders often want to lead the company to the final destination: M&A, IPO and bring a lot of profit to the community of investors and partners. Compared to the incubator and accelerator models, venture builder often has a longer-term goal, always accompanying the startup as a co-founder. To better understand this model, please refer to the content “What is the Venture Builder? Why should a startup go with Venture Builder?” in the following article.
What is VentureBuilder?
Venture Builder is an organization that builds startups by bringing ideas to life and leveraging available resources. In simpler words, when startups have a breakthrough business idea, venture builder – startup incubator will invest and provide solutions based on holistic approach, field survey, customer experience In this process, the startup will be led by a team of strategic planning experts, software engineers, sales & marketing experts, etc.
Three salient features of the venture builder model:
- Invest in early stage startups.
- Participating in the business of the enterprise
- Owning a team of experienced experts in many fields, modern infrastructure – equipment.
How is venture builder different from venture capital, incubator, accelerator?
Basically, venture builder (start-up incubator), venture capital (venture capital), incubator (business incubator), accelerator (business accelerator) are all organizations and businesses that advise on legal services, providing working space, professional training to help startups grow up quickly, bring products to market soon and look to a longer-term future such as M&A, IPO .
However, compared to venture capital – incubator – accelerator, venture builder usually invests in the early stages of the business, when the idea is just forming. Besides capital investment, they often give their best support in the development of the company. Venture capital, incubator, accelerator often pour capital for businesses/publics that already have customers, grow revenue, want to expand the market and business scale, the investment period lasts only a few months or as long as only 3 -5 years, the number of shares usually ranges from 6 – 20%. The startup incubator model is often deeply involved in startups and holds a large stake in the company.
Why should startups go with Venture Builder?
The majority of start-up projects often lack capital, have not yet grasped the market and cannot find a direction for future projects. Therefore, the venture builder model is a great “friend”, helping founders build their careers and realize their dreams. That is also part of the reason why startups should go with Venture Builder after knowing what the venture builder model is.
Use available resources at the venture builder model
Compared to the traditional form of bootstrapping, which uses equity to build & develop a business, accompanying a venture builder will help founders with less headaches in the initial capital raising process, and more focus. in the process of implementing ideas, bringing revenue to the company.
In addition to capital investment, a startup can take advantage of available resources from the venture builder model investment fund such as a team of advisors, IT experts, sales & marketing, startup ecosystem, etc. “accompanying” with businesses, venture builder will build culture and mindset for startups, connect with investors to develop businesses, and at the same time, ensure their financial resources to invest in startup projects. least risky business.
Save time and money.
When building a business, founders have to spend a lot of time and effort recruiting people in many industries. However, when partnering with a venture builder, they will help the founders grow the company not only by pouring capital, but also with resources through mentoring, training, salary or providing marketing experience. . With the advantage of “standing on the shoulders of giants”, startups will discover hidden values, build appropriate business strategies, and products will be quickly brought to market with low cost and efficiency. highest fruit.
The possibility of starting a successful business is high
Most investment funds operating under the venture builder model are established and managed by experienced entrepreneurs with successful business products. Therefore, the venture builder understands the risks that startups often face from problems of capital, human resources, deployment strategy, etc. To have a successful business, startups not only have breakthrough ideas, founders have the capacity and direction, but also need a “companion” like a venture builder to support the business to enlighten its long-cherished business passion.
Through the content just shared about what is Venture Builder? Why should startups go with Venture Builder?, when first starting a business, startups face many difficulties in all aspects. Some people are discouraged, give up halfway, but others continue to stand up, trying to overcome all obstacles ahead. However, if you are still struggling to find a direction for your business, tragedies such as lack of capital, lack of talent, etc. will strike again. Therefore, founders need to be wise not only in business, but also in the process of raising capital from investors and choosing companions.
Start-up investment fund Skylink Partners is a member of Skylink Group operating under the venture builder model. Owning a team of experienced core experts in the fields of finance, IT, sales & marketing, Skylink Partners is committed to bringing diverse investment products in the fields of technology, social media, and retail with high quality. , has long-term profitability potential. Therefore, if investors want to accompany or cooperate with us, please contact the hotline 028 6254 9999 or leave a message in the form below. Skylink Partners will support you as soon as possible. Best regards.