<\/figure>\n\n\n\nTHE SPECIALIZATIONS OF VENTURE BUILDERS<\/h2>\n\n\n\nIDENTIFYING BUSINESS IDEAS<\/h3>\n\n\n\n A Venture Builder generates its own ideas for new businesses and brings these ideas to the market OR is approached by external individuals\/parties with a business idea. Validation of the business idea will always be the starting point. This can, for instance, be conducted through the lean startup method or online concept validation. In this process, the Venture Builder needs to swiftly move from ‘nothing’ (purely the idea on paper) to ‘something’ (a means to test the idea). This might involve a Proof of Concept or Minimum Viable Product, as well as validation processes. Based on this information, the decision can be made to (1) further develop the product\/idea, (2) refine the product\/idea, or (3) not proceed with the product\/idea.<\/p>\n\n\n\n
BUILDING TEAMS<\/h3>\n\n\n\n Constructing a strong team is perhaps the most crucial aspect of a Venture Builder. To get a new business idea off the ground, knowledge from various domains is required. This includes: development, marketing, sales, legal expertise, business development, and industry-specific knowledge. A Venture Builder possesses this knowledge in-house or has a vast network that can be tapped into.<\/p>\n\n\n\n
ACCESS TO CAPITAL<\/h3>\n\n\n\n When the decision is made to further develop a business idea, capital often becomes a concern. A Venture Builder either has capital at its disposal for developing business ideas or has a network of investors and funders that can be engaged.<\/p>\n\n\n\n
LEADERSHIP<\/h3>\n\n\n\n Venture Builders specialize in leading startups. This can naturally occur at different levels and stages. If the Venture Builder is the originator of the business idea, it will likely take full responsibility for daily leadership. Usually, a ‘venture lead’ is also appointed, who holds the primary responsibility for the venture. However, the Venture Builder can also operate on behalf of a partner. In such cases, the extent of leadership provided can vary, ranging from daily leadership to an advisory role.<\/p>\n\n\n\n
SUPPORT THROUGH RESOURCES, TALENT, AND SERVICES<\/h3>\n\n\n\n With their extensive networks, access to tools, and comprehensive knowledge, Venture Builders can support their partners across various domains. Apart from talent and access to capital, Venture Builders can also provide support through shared services. This encompasses aspects such as office space, accounting, legal counsel, etc.<\/p>\n\n\n\n
All these advantages of venture builders result in a significantly higher Internal Rate of Return for startups from venture builders compared to traditional startups. The time to a Seed or Series A round is also notably shorter than that for traditional startups.<\/p>\n\n\n\n <\/figure>\n\n\n\nDIFFERENT TYPES OF VENTURE BUILDERS<\/h2>\n\n\n\n There are different types of venture builders. Venture builders can specialize in developing startups in a specific niche, such as B2B SaaS, HealthTech, Web3, or Co-living\/working.<\/p>\n\n\n\n
Another way in which venture builders can differentiate themselves is in the methods they use to develop ventures. We’ll list these different methods. Some venture builders operate according to only one of the methods below, while others offer multiple options.<\/p>\n\n\n\n
\nIn-house venture building: Ideas for new ventures are conceived and validated in-house. Subsequently, an internal venture lead is appointed, a venture lead is hired, or collaboration is sought with an external individual (or party) who will participate in the venture. <\/li>\n\n\n\n Joint venture building: A venture builder starts a new venture together with a co-founder (external entrepreneur or party). <\/li>\n\n\n\n Corporate venture building: A venture builder is part of a larger corporate entity that finances the venture builder (and typically develops ventures in the interest of the corporate). <\/li>\n\n\n\n Late founder venture building: A venture builder joins an existing team with a product to continue its development.<\/li>\n<\/ul>\n\n\n\nEQUITY STRATEGIES OF VENTURE BUILDERS<\/h2>\n\n\n\n Venture Builders differ in many dimensions from each other. Think of industry focus, number of startups, internal or external ideation, the amount of equity in the ventures, etc. Why would a venture builder go for a lot of equity? Or why would they go for little equity?<\/p>\n\n\n\n
Responsibility<\/strong>. When a venture builder holds a majority stake in a startup, they are expected to take on a more hands-on role and be responsible for a greater share of the work. Conversely, with a smaller amount of equity, the venture builder may take on a more limited role as a strategic investor or focus on a specific area of expertise.<\/p>\n\n\n\nVolume<\/strong>. As the amount of equity increases, the venture builder spends more time on the startup. Time is scarce, so venture builders with a lot of equity typically participate in a lower number of startups. When going for a higher volume, the venture builder will compensate for that with less equity.<\/p>\n\n\n\nExits<\/strong>. When you have more equity in a startup, there is more to be earned at exits and more can be diluted. With less equity, the exits are lower, but chances can be spread over more startups.<\/p>\n\n\n\nCross-pollination<\/strong>. With more equity, you are more operationally involved in the ventures, which allows you to learn more valuable lessons in that area. When you only have a small stake in a venture as a strategic investor, you will miss out on these lessons.<\/p>\n\n\n\nOf course, there are other factors that influence the amount of equity. Think of in-house vs. joint and early vs. late stage investment.<\/p>\n\n\n\n
WHY VENTURE BUILDERS ARE SUCCESSFUL IN THE STARTUP LANDSCAPE<\/h3>\n\n\n\n Venture Builders distinguish themselves in the startup landscape by achieving a significantly lower failure rate than ‘regular’ startups. From a study involving qualitative interviews, three pillars have been identified through which venture builders achieve this.<\/p>\n\n\n\n
The kill rate of venture builders is quite high. A stringent validation process ensures that many ideas are halted in the early stages. This leaves only the ideas with truly high potential. Access to talent specialized in building new businesses, combined with access to capital, contributes to the exceptional performance of venture builders in the early stages. Due to achieving above-average success rates and returns, venture builders find it easier to secure investments. This results in growth capital being less frequently an issue. Venture builders manage to secure Seed investments over three times faster. Series A investments are also obtained twice as quickly.<\/p>\n\n\n\n
VENTURE BUILDERS IN THE NETHERLANDS<\/h2>\n\n\n\n Venture building in the Netherlands is still in its early stages. Currently, the venture building landscape includes the following studios:<\/p>\n\n\n\n
\nDuodeka (B2B SaaS) <\/li>\n\n\n\n Builders (co-working & living) <\/li>\n\n\n\n Entweder (office innocation) <\/li>\n\n\n\n Brainblurb <\/li>\n\n\n\n Fresh Venture Studio (circular food systems) <\/li>\n\n\n\n Aimforthemoon (corporate venture building) <\/li>\n\n\n\n Tes Ventures (impact-driven) <\/li>\n\n\n\n The main ingredient Nescio (tech)<\/li>\n<\/ul>\n\n\n\nDUODEKA AS VENTURE BUILDER<\/h2>\n\n\n\n Duodeka<\/a> is also a Venture Builder. In the visual below, you can see how Duodeka compares to other venture builders.<\/p>\n\n\n\n <\/figure>\n","protected":false},"excerpt":{"rendered":"Venture Building, what is it exactly? Venture Builders are organizations fully dedicated to launching, developing, and scaling digital startups. Venture Builders are also known as Venture Studios or Startup Studios. The venture building landscape is growing rapidly and is increasingly being recognized as a new asset class in the investment landscape. In this article, we […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"acf":[],"yoast_head":"\n
Venture Building and Startup Studios | All you need to know<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n