Venture builders share the risks with the founding teams, removing the initial uncertainties of the business model and making sure that the startups are protected from the most unexpected problems.
Venture builders are organizations dedicated to systematically create and develop startups from scratch, using their resources, market experience, and networks of partners.
Usually composed of highly qualified entrepreneurs, investors, and developers, centralized venture builder teams are able to achieve higher levels of efficiency than more traditional startups.
This type of company has the ability to take on most of the legal challenges, from accounting, human resources, investment, marketing, the development of the startups, and even in helping growing the market.
This advantage exponentially increases the chances of success of the companies hosted by venture builders compared to other business systems.
How do venture builders work? The vast majority of startups in all types of services and markets fail at some point, many even at the very beginning. They tend to fail for the same reasons: no market need, wrong team, inefficient cost control, a poor (or no) business model, poor marketing capabilities, among others. In other words, most startups end up failing for avoidable problems.
Venture builders share the risks with the founding teams, removing the initial uncertainties of the business model and making sure that the startups will be protected from the most unexpected and/or common problems in the market, keeping them that way until they are on track for success.
The five major activities that venture builders perform are: identifying business ideas, building teams within the startups, finding the necessary capital for these companies, helping to manage the startups, and providing them with shared services.
Venture builders often work with entrepreneurial teams for much longer than just a few months, thus bringing certain long-term stability.