Why the number of Venture Builders is growing fast

📈 Why the number of Venture Builders has more than doubled in the last 6 years and will continue to grow.

Currently (2024), there are 824 Venture Builders worldwide, and 427 of them have started in the last 6 years.

Venture builders are becoming a well-established phenomenon in the startup (investment) landscape.

𝐖𝐡𝐲 𝐢𝐬 𝐭𝐡𝐞 𝐧𝐮𝐦𝐛𝐞𝐫 𝐨𝐟 𝐯𝐞𝐧𝐭𝐮𝐫𝐞 𝐛𝐮𝐢𝐥𝐝𝐞𝐫𝐬 𝐢𝐧𝐜𝐫𝐞𝐚𝐬𝐢𝐧𝐠 𝐬𝐨 𝐫𝐚𝐩𝐢𝐝𝐥𝐲?

The failure rate of single startups is around 90%, which is extremely high.

Building and launching startups requires various skills and resources such as concepting, software development, marketing, and sales. However, startup founders do not possess all these skills, and not all of them are needed full-time right away.

Moreover, building a team is time-consuming and risky, while hiring external suppliers is expensive, and they may have conflicting interests.

Therefore, the high failure rate of single startups is easily explained.

In our opinion, the rise of venture builders is a response to the difficult starting position of single startups and the resulting high failure rate.

🏆 The business model of Venture Builders enables startup founders to significantly reduce this high failure rate and outperform single startups.

How?

Venture builders have repeated experience in launching startups in the niche in which they operate (e.g., HealthTech, FinTech, or B2B SaaS).

All necessary skills and resources are readily available in-house, eliminating the need to recruit staff (which is costly and risky) and keeping external suppliers out of the picture (which is expensive and can lead to conflicting interests).

Skills and resources are flexible and can be deployed when needed, preventing waste of time and money.

The team is well-coordinated and can work together effectively.

We anticipate the number of venture builders to continue growing in the coming years, especially in the Netherlands, where only a few venture builders are currently active.