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Before We Start: Do You Need A “Right Partner”?
There are too many difficulties that you can encounter as a startup founder in the first stage. Is your company's products not suitable for market needs, or are there too many competitors? Is your team not capable of operating or even having internal conflicts?
The product has run out of money before being launched? Not only that, a startup founder also has to face pressure from relatives, and internal "tears" such as continuing to do a startup or working as an employee, pursuing a mission or pursuing revenue, constantly calling capital or financial self-reliance, etc.
It is difficult to focus on business development while surrounded by such internal and external difficulties. If you already can bootstrap financially as well as a very "huge" team, have proven your business model and don't need a "companion partner", then congratulations, maybe you don't need to read next.
But we suspect that about 90% of startup founders are not so lucky. In most cases, choosing a "companion partner" is a good way for startups to reduce some of the physical and mental burden, especially in times of many difficulties in the general economy due to the current epidemic.
This "partner" can be one (several) co-founders, who can complement your shortcomings in areas that are not your expertise. The partners can also be organizations - investment units, with some popular types such as Incubators, Accelerators, Venture Capital, or Venture Builder.
What is special about Venture Builder compared to other forms of investment?
They differ significantly from other forms of investment like venture capital firms, incubators, or accelerators. Here's what makes Venture Builders special:
Idea Generation: Unlike venture capitalists who invest in existing startups, Venture Builders often generate business ideas in-house based on market research and their expertise.
Resource Allocation: They provide not just funding but also a full range of resources necessary for a startup to grow. This includes office space, legal advice, HR, IT support, and access to a network of potential customers and partners.
Hands-on Involvement: Venture Builders are deeply involved in the operation and growth of the startups. They typically have a team that works closely with the startup, providing expertise in various aspects of business development.
Multiple Projects: They usually work on several projects simultaneously, diversifying their risk. If one startup fails, they have others to fall back on.
Equity Stake: In return for their investment and involvement, Venture Builders usually take a significant equity stake in the companies they help build.
Long-term Commitment: Their model is based on a long-term commitment to the startups they build, often remaining involved after the company becomes sustainable.
The Difference Between Venture Builder And Venture Capital
Just like Venture Capital, Venture Builder also invests a sum of money in your startup and of course, expects the value of your business to increase in the future with the percentage of shares they own. However, there are some basic differences between these two models.
Regarding the level of engagement:
Venture Capital mainly focus on strategy, whether the business model is feasible, and whether your company can successfully go to the next round of capital raising.
Meanwhile, besides these things, Venture Builder also supports startups more in aspects of business administration and operations, intervening more deeply in daily difficulties.
Like the name of each form is "Capital" vs "Builder":
Venture Capital often invests in the "direct" method of pouring capital. Venture Builder, besides money, also invests "indirectly" through other resources, such as a product development team, "In-house" marketing, operating procedures, seating, and connecting with other startups in the same ecosystem to support each other,...
Requirement:
Venture Capital often requires you to have "traction" - proof of performance with data (such as revenue, users); while Venture Builder sometimes don't care too much about a proven business model or not.
Venture Capital investment portfolio is almost unlimited; while Venture Builder only choose startups that truly fit their philosophy.
Because they often invest at a very early stage, even from the idea stage, Venture Builder often tend to pour in a smaller amount of money and a larger expected stake than Venture Capital (due to risks and concerns). The non-monetary support they offer is often greater in the early stages of a startup).
Businesses or entrepreneurs should consider finding a Venture Builder in the following situations:
Early-Stage Concept: If you have a business idea or concept but lack the resources, expertise, or full team to develop it into a viable product or service, a Venture Builder can provide the necessary support to turn your idea into a reality.
Need for Comprehensive Support: If you require more than just financial investment — such as operational support, HR, legal advice, IT infrastructure, and market access — Venture Builders offer a complete ecosystem for nurturing startups.
Desire for Active Partnership: If you're looking for active, hands-on partners who will be involved in the day-to-day operations and strategic decision-making of your business, rather than passive financial investors, a Venture Builder is a good choice.
Risk Mitigation: For entrepreneurs who want to mitigate the risk of starting a business from scratch, Venture Builders provide a safety net through their diversified portfolio and established business infrastructure.
Scaling Challenges: If you're at a stage where your business is ready to scale but you lack the necessary network, expertise, or resources to do so effectively, a Venture Builder can provide the critical support for scaling.
Access to a Broader Network: Entrepreneurs who want to leverage a broader network of potential customers, partners, and mentors would benefit from the extensive networks that Venture Builders usually have.
Seeking Market Validation: If you need help in validating your business model in the market, Venture Builders, with their experience and resources, can expedite this process.
Sector-Specific Expertise: Some Venture Builders specialize in specific sectors (e.g., tech, healthcare, fintech). If your business falls into one of these niches, a specialized Venture Builder can offer invaluable industry-specific guidance and resources.
Funding Constraints: If traditional funding routes (like venture capital, angel investors, or bank loans) are not viable or sufficient for your startup, Venture Builders can provide an alternative funding and support mechanism.
In essence, startups or entrepreneurs that are in the nascent stages of their development, need substantial operational support beyond funding, or face challenges in scaling effectively, should consider partnering with a Venture Builder. This partnership can provide a blend of capital, expertise, and practical support to navigate the complex journey from an idea to a successful enterprise.
Are you a startup seeking to expand your business and take on new challenges in different markets? Look no further than Renaissanc! Our team of experts can help you set up and deploy your startup globally and cònidently tackle unique opportunities. Let’s collaborate today and explore the endless possibilities that await you!