In the ongoing debate surrounding the best approach for startup creation and growth, the question arises: Is Venture Builder the way to go? Should we opt for a Startup Accelerator? Or is a Startup Incubator the ideal choice?
Startups are relatively easy to start, but their sustained growth and success are challenging due to intense competition. To fuel your startup engine, substantial capital investment is often required.
This prompts us to question the relevance of these options.
Venture Building Model Comparison
Venture Builder
Simply put, a Venture Builder focuses on the creation, development, launch, and scaling of startups. Their process flow can be summarized as follows:
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- Generate ideas, explore prototype concepts, and work on “in-house” projects to identify new business opportunities
- Build/recruit founding teams for the startups they develop
- Facilitate access to seed/early-stage capital
- Provides shared services for key resources required for operations
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The trade-off for the support provided and a monthly salary is a much smaller amount of equity allocated to the hired founders/CEO. Thus, Venture Builder is a wonderful option for a fresh CEO/founder who wants to try running a startup. It is also a great solution for corporations that are looking to establish their own startups but are hindered by their traditional, slow-paced framework.
Startup Accelerator
Startup Accelerator is all about growth-driven ventures in their infancy to achieve product-market fit and secure their first users/customers within a relatively short period. It is worth noting that startup accelerator programs often combine financial support with training, mentorship, and business networking.
Startup Incubator
While Accelerators aim to ‘speed up’ the growth of new businesses, Incubators encourage ‘innovation’ and disruptive technologies. Thus, they are much more focused on bringing the idea from paper to product with the usual support period of at least 1 year or more.
Startup Path: Startup Incubator
Incubators primarily target promising founders who are in the early stages of building their businesses. These startups often have only an idea for a market and aim to develop it into a functional prototype or a minimum viable product (MVP).
A Startup Incubator is your best option when you are searching for:
- MVP Development
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- Your service/product still needs to be improved before it can be delivered into the market and accessed by all customers.
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- Co-founder(s) Or Founding Team Members
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- Your startup is struggling due to the lack of core members.
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- Taking Root Instead Of Scaling Up
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- You are seeking guidance to focus on establishing the business model, plan, and goal. In other words, your business is not ready to scale up quickly.
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Startup Path: Startup Accelerator
The goal of the accelerator is primarily to help startups grow quickly and robustly within a short span of time. Thus, they typically accept startups that have a strong foundation and are seeking (pre-)seed investment.
A Startup Accelerator is relevant for you if:
- Your Idea Has Reached The Minimum Viable Product Stage
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- You already have a proof of concept, developed a working prototype, and have done enough customer development to fill up your business model canvas. All that is left is trying to launch successfully.
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- It Is Time To Scale Up
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- You need a high amount of capital to fuel your growth and gain greater business traction.
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Startup Path: Venture Builder
The two models mentioned above focus on helping founders/CEOs run their own startups more efficiently. However, their involvement in the startup’s day-to-day operations is limited and passive when compared to that of Venture Builders.
So, for entrepreneurs and businesses who do not have any experience with startups, the Venture Builder operational model is a great choice for:
- Learning How To Run A Startup From The Ground Up
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- Instead of spending years on trial and error to figure things out and conquer the steep learning curve, you can jump right into the thick of the action with the initial resources and operational capabilities available.
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- You Do Not Have To Deal With Every Problem At Once
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- There should already be a playbook and structure in place for business operations. This means you shouldn’t be tied down with the administrative grind, and you can focus on moving fast and breaking things.
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Conclusion – Choose Venture Builder If You Want To Start Quick
It is no news that there are many pathways to build and grow a startup. However, for those seeking a well-guided and efficient journey, Venture Builders empower businesses and entrepreneurs to kickstart their startups, offering the initial ingredients and recipe that’s ripe for success.
If you are to build your own startup but do not know how to start, don’t hesitate to drop us a message. We will help you out with our professional team of experts.
