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 are organizations that build companies using their own ideas and resources.
Venture builder model vs. venture capital, what are the differences and advantages?
The venture builder model is getting popular and seems to be better than venture capital. Although both of them have some attributions, venture builders are more trustful and beneficial for a promising startup. Especially when companies lack the expertise in a certain area. Also, it is not a surprise Venture Capital funding is getting harder and harder. Startups can have lower cost with the new digital technology. Therefore, it is getting difficult to find raising fund solely based on business expense and hiring.
Venture Builder as a bridge to Venture Capital
Venture builder is the key point of connecting. Basically, Venture Builder fills up the gaps between an entrepreneur and Venture Capital.
Entrepreneurs can have a brilliant idea but they do not know how to go further with this idea neither develop a Minimum Viable Product or even a prototype. Thus, they still fail to secure funding. However, a Venture Builder has in place, with built frameworks and infrastructures to manufacture products, funds, marketing strategies, human resources, company culture, and the expertise to accelerate growth. Therefore, Venture Capital will prefer to invest in a Venture Builder simply out of lower risk.
Venture Capitals may not want to deal the hard-sweaty work. Venture Builder can help this point and like a typical investor, only provide X amount of funds and expect Y in return. However, Venture Builder establish the stuff, products of all digital and technology kinds.