Categories: General Information
What is a Venture Builder? The Venture Builder Model of Unicorn Ultra
As the startup ecosystem has continued to evolve and mature, a new business model has emerged: Venture Builder. What is a Venture Builder and how does it differ from traditional venture capital firms or incubators? Explore the definition as well as the meaning in this U2U article.
Table of Contents
- What is a Venture Builder?
- Why was the Venture Bulder model born?
- How does Venture Builder differ?
- The rise of venture builders
- What does the startup get from Venture Builder?
- What will U2U do to implement the current Venture Builder model?
- U2U's Venture Builder brings benefits to users
- The Sharing Economy Creates Venture Builders
What is a Venture Builder?
A venture builder is consists of a dedicated team of multidisciplinary professionals with the aim of generating and nurturing new business ideas, bringing forth new companies or products, and facilitating their journey to success.
The definition of a Venture Builder is a unique type of enterprise that specializes in creating and launching new businesses. Sometimes referred to as Startup Factories, Startup Studios, Tech Studios, or Venture Production Studios, these organizations utilize their resources and networks to develop high-growth businesses from scratch. They take an idea, transform it into a product, and then establish a successful business around it.
The Venture Builder Model has proven to be incredibly successful, and it is credited with producing some of the most successful startups in the world, including Twitter and Medium. This model has also been adopted in the corporate world to drive innovation and establish spin-out companies. With its focus on identifying and nurturing new business ideas, the Venture Builder Model is poised to continue to drive innovation and create successful startups for years to come.
Why was the Venture Bulder model born?
The startup story has always been compared to the distance between the numbers 0 and 1, meaning from nothing to something. The success of tech unicorn companies valued at over 1 billion USD has become the dream of many businesses.
However, different statistics show that it is a far-fetched dream as over two-thirds of startup projects fail in the journey from 0 to 1. Today's economy still has a lot of potential for development, especially as humanity enters the era of Industry 4.0 with many breakthroughs. However, in a highly competitive world, startups have a hard time finding their place and achieving success.
Therefore, the Venture Builder model was created with the meaning to nurture, construct, develop, and expedite the growth of startups.
How does Venture Builder differ?
Venture capital firms and Venture Builders differ significantly in their approach to investment. While venture capital firms invest in teams and business ideas that meet their criteria without getting involved in daily operations, Venture Builders take a more hands-on approach to management. If a Venture Builder owns equity in its ventures, it's because it played a significant role in developing the idea and invested substantial effort in growing the company, rather than merely providing capital.
Nevertheless, some Venture Builders are creating funds to facilitate fundraising efforts. However, unlike incubators and accelerators that accept applications for a limited period and run a competitive program culminating in a Demo Day, Venture Builders don't accept applications. Instead, they leverage their network of resources to source business ideas and create internal teams from scratch to develop them, including engineers, advisors, business developers, and sales managers. The relationship between a Venture Builder and its ventures is long-term, with deep involvement in the startups they produce until exit.
The rise of venture builders
According to The Mind the Bridge’s report “Evolve or Be Extinct: Current and Future Models of Open Innovation from the 2021 World’s Corporate Startup Stars”, the trend of venture building is expected to be one of the most popular methods of corporate innovation in 2023. This innovative approach provides several benefits for companies to embark on innovative initiatives without compromising their existing strategies or resources.
One of the major advantages of the venture-building model is the ability to save significant amounts of time and resources. Compared to the traditional process of launching an independent startup, venture studios offer a much more agile and cost-effective way of identifying new business opportunities and transforming them into reality.
Building a startup typically involves securing several rounds of seed funding, as well as recruiting and assembling a team, which can take up to a year or more. In contrast, partnering with a venture studio allows companies to create a startup with considerably fewer financial resources, without the need to hire a dedicated team, and in a significantly shorter timeframe. This makes it a more efficient and faster way to foster innovation and bring new products or services to market.
Successful companies may be experts in many areas, but innovation is not typically one of them. While they recognize the importance of corporate innovation, there is often a disconnect between their expertise and actually implementing innovative ideas. This is where venture studios, like Corporate Lab, can be invaluable. Made up of a team of entrepreneurs who specialize in startup creation, these studios allow companies to delegate innovation to experts and focus on their own areas of expertise.
It can be tempting for companies to focus solely on their successful product-market fit and avoid disrupting their current business model. However, diversifying business options can often lead to greater success. The challenge is finding new ideas that complement the existing strategy without conflicting with it. Disrupting a company's business model can be a daunting prospect, requiring major readjustments and taking significant risks.
Venture builders offer a solution to these challenges. Unlike in-house innovation departments, they do not clash with the company's strategy, roadmap, or objective key results. They do not require the creation of new departments or the hiring of new employees, allowing companies to pursue innovative ideas without sacrificing their current successes.
If your company is interested in exploring new ideas for innovation, consider hiring a venture studio. Schedule a call with them to discuss your options and find the right fit for your business.
What does the startup get from Venture Builder?
To ensure success in the startup process, startups need to pay attention not only to having a product that embodies the founder's ideas and passions but also to having an efficient operating system. However, building a basic and complete system of an enterprise, including the back office and operating procedures, can require a lot of time and cost. That's why Venture Builder was created to help startups save time and resources in the process.
Not only ensures the support to build the basic system and operating process, Venture Builder but also connects startups with other businesses in the ecosystem to facilitate startups to support each other and develop. furthermore. This helps startups access important resources such as investors, partners, and potential customers, thereby boosting their business growth.
In addition, Venture Builder also supports startups to build business strategies in line with market conditions. Venture Builder's experienced startup leaders will act as mentors and coaches, helping startup CEOs maintain their entrepreneurial passion and directly participate in solving startup problems. This helps startups focus on their products and business strategies while ensuring that the company's operations are run efficiently. So, Venture Builder not only helps startups save time and resources but also helps ensure their success in the startup process.
What will U2U do to implement the current Venture Builder model?
Starting from scratch in the blockchain industry, U2U has overcome many difficulties to become a technology unicorn worth over 1 billion USD today. The decision to adopt the Venture Builder model for Unicorn Ultra's direction and vision was not a random choice, but the result of careful observation and analysis.
We identified a shortcoming in the traditional Venture Capital model where investors had to wait for the public funding round (called angel investors), and not everyone could access this stage. Unicorn Ultra's vision is to create a Venture Builder community where any individual or group can become an initial investor in startup projects even before funding rounds or IPOs, just by joining our ecosystem.
Crowdfunding is used as a resource to attract and fund U2U's blockchain-based development projects in the Venture Builder model. The benefit for investors is that the shares of each project have an increased value depending on the success of each project. Projects built through the Venture Builder model have a success rate of up to 70%, of which there is a 5% chance of becoming a unicorn. Unicorn Ultra has adopted this advanced model, integrating it with blockchain technology to form a comprehensive ecosystem named U2U Blockchain Venture Builder.
We don't want to show off, but we want to affirm the prestige and efforts of U2U and the right and appropriate choice for the Venture Builder model. We strive to make our words more convincing through our actions and not be "scammers" in the virtual world. U2U's continuous development is still on the rise, reflected in the numbers, projects, and quality partners who have trusted and cooperated with us.
U2U's Venture Builder brings benefits to users
With the aforementioned highlights and the variety of products in the U2U ecosystem, you can join our community and experience the products and services that U2U offers. In return, you will receive the benefits you deserve.
The digital revolution has introduced numerous technologies and platforms, but few have achieved the prominence of U2U Chain. Built on Hashgraph technology, U2U Chain demonstrates the potential of layer 1 chain by offering experiences rather than just transactions. By adopting the Venture Builder model, U2U Chain has become the go-to destination for startups and businesses seeking to excel in the blockchain platform. Its ecosystem extends beyond NFTs to decentralized finance (DeFi) applications. Focusing on Venture Builder, U2U Chain provides the resources, tools, and support to ensure effective growth for every startup.
With U2U Chain, we can help your projects not only tap into the hidden power of blockchain but also expand your community, from applying U2U Chain to asserting ownership and voice for community members.
U2U Wallet is not only an efficient and secure digital asset management platform, but also a cash flow transaction and storage tool, compatible with various other chains, ensuring a seamless experience in storing, sending, and receiving digital currency. U2U Chain's decentralized multi-chain wallet serves as the gateway to the digital world, linking to various other diverse products included in the common U2U ecosystem. By logging into our wallet, you can access a cross-platform world of experiences, including U2U Music, U2U Faucet, U2U Council, and more.
There are many other utilities integrated with the Venture Builder model for users when it comes to Unicorn Ultra. So let's experience it to get the most objective assessment.
The Sharing Economy Creates Venture Builders
The concept of "verification" has led to the emergence of a new venture-building ecosystem, characterized by on-demand services and a sharing economy that fundamentally changes the way society accesses resources. Venture Builders, in particular, rely heavily on the quality and dynamics of their networks to unify available resources in the most effective way possible. This requires careful consideration of which combination of resources will produce explosive results and capture market share faster than competitors.
The key challenge for Venture Builders lies in their ability to facilitate all of these resources under one governing body, creating a focused and dedicated internal culture of trust, deal flow, attentiveness, and determination. This network-focused model is distinct from the traditional startup business model, and for good reason. As the entrepreneurial world adapts to the ever-changing needs of consumers and corporate clients, startups and organizations must evolve and share resources under a unified business model in order to remain competitive and respond to their client's needs faster.
The Venture Builder model shares similarities with venture capital firms in terms of funding ventures, building a portfolio, and seeking successful exits. However, Venture Builders are more involved in the operational aspects of their ventures than traditional VCs. In some cases, they even go so far as to pull all necessary resources from their vast networks to crush the competition and scale extremely fast.
This "Do it full speed exponentially or die" operational technique is highly reminiscent of Uber's and Rocket Internet's business strategy, demonstrating that Venture Builders are gifted entrepreneurs and savvy business developers who do not simply pour money into ventures and watch them grow. Instead, they implement aggressive business management techniques that benefit all the ventures within their network.
Conclusion
So, what is a Venture Builder? It's a new business model that has become increasingly popular in recent years, offering a more specific approach to building and expanding startups. By providing funding, resources, and expertise, Venture Builders can help transform ideas into successful businesses more efficiently and effectively than traditional venture capital firms or incubators. Follow U2U for more information on blockchain!