Several IT startups with great business ideas end up struggling in their journey. Even after getting the funding, they fail. What can be the reason?
There are a lot of things a business demands besides funding. Venture building takes care of these and nourishes an idea into a fully grown business.
As technology evolves, so do the opportunities for IT startups. From seed funding to scaling success, venture builders are helping businesses at every stage.
This article lists a few top IT startups to watch who grew under venture builders. You will also learn about venture building benefits for a business.
Venture building is a unique form of business support. They blend hands-on company building with financial backing from venture capital. Unlike venture capital firms, venture builders focus on nurturing startups from scratch.
They start, grow, and expand new companies by providing comprehensive support. This includes helping to build teams, shape strategies, and secure funding.
Venture builders take initial business ideas and nurture them with strategic resources. They can speed up IT startup growth with in-house founders, marketers, developers, mentors, and investors.
Venture builders lower risks and boost long-term success in the market. They promote innovation and support startup ecosystems.
Venture building involves a structured setup to nurture startups from scratch to the final stage. Each stage ensures sustainable growth and success. Here’s how venture builders help startups throughout this journey:
Venture builders start by generating and validating ideas, ensuring product-market fit. They solve real-world problems, adding value to people's lives.
These organizations create prioritized opportunity lists by understanding market needs and developing suitable products. They refine these ideas through research and feedback. Venture builders make sure a startup is ready for further testing and validation.
Market validation defines customer needs and assesses if the venture meets them. Experience builders assess the demand for, financial viability, and technical feasibility of a product or service.
A structured validation process involves market research, workshops, and customer discovery. It also includes an eight-week testing plan. This plan includes refining wireframes, branding, and sales strategies based on user feedback.
Building technology follows concept validation. Venture builders develop a functional minimum viable product (MVP) using agile methods.
This includes defining the backlog, setting up environments, UX/UI design, and sprint processes. The output is a successful MVP and a comprehensive go-to-market plan.
A go-to-market strategy introduces and promotes the new business. Continuous optimization involves studying customer behavior and improving user experience. It also includes refining messaging and building sales pipelines.
It leads to better pricing and improved brand communication. This approach also provides deeper customer insights and a refined support system. These improvements ensure successful product launches and market growth.
Post-launch scaling involves exploring new markets and expanding product lines. It also includes strategizing new revenue opportunities and forming partnerships. Future builders offer market research and data analytics to facilitate informed business decisions.
Continual product updates and brand growth ensure a clear product definition. Agile platform development helps in creating bug-free and user-friendly platforms.
Venture builders support IT startups with regular check-ins, training, and mentorship. They also provide access to necessary resources.
Venture builders select and invest in promising startups. They guide them toward successful exits such as mergers or IPOs. This includes providing resources and support to ensure continued growth and maximize returns.
Successful startups may pursue exit strategies like sales or public offerings. This strategy involves identifying potential buyers and preparing the company for sale.
It also includes negotiating terms and handling post-exit processes. The aim is to generate returns for investors and reinvest resources into new startups.
Venture building has emerged as a groundbreaking solution for IT startups. It is helping those who are struggling with resources. Here is a list of benefits that venture building provides for startups:
Venture builders provide comprehensive support from idea generation through scaling, covering finance, marketing, technology, and human resources. This extensive support system enhances the success potential of startups.
Through wider investment networks, venture builders provide easier access to capital for startups. This financial support is crucial for growth and expansion initiatives.
Research shows that startups created by venture builders have a 30% higher success rate. They also provide better returns on investment than traditional startups. This success is due to the tailored support and strategic guidance provided throughout their growth journey.
With in-house industry experts, venture builders enable startups to access specialized skills precisely when needed.
They have experienced marketers, developers, advisers, investors, and every talent you need. It ensures that every team member handles tasks efficiently.
Venture builders reduce startup risks by providing expert guidance and ample resources.
Utilizing proven business models and strategic playbooks, venture builders minimise operational errors and optimize development processes.
Venture building provides resources, guidance, and a supportive environment. Here are the top 3 IT startups to watch who have been growing under the building model:
Medium started within Obvious Corp and grew into a prominent content platform. Obvious Corp's support and strategic guidance were crucial in shaping Medium's growth trajectory. Initially, Medium was an internal project that evolved into an independent entity.
Here is how Obvious Corp's venture building helped Medium in its growth:
Twill is one of the recently funded startups that shows the impact of venture building on logistics. BCG Digital Ventures (BCGDV) launched Twill. They used their digital skills to create an easy-to-use platform for global freight forwarding.
Twill simplifies complex processes with an integrated digital interface for better operational efficiency. BCGDV contributed to Twill’s success in the following ways:
BrainCo is next in the list of recently funded startups by venture builders. BrainCo's growth in the Harvard Innovation Lab shows the impact of venture building for IT startups. It highlights their role in advancing groundbreaking ideas and inventions.
The Harvard Innovation Lab facilitated BrainCo's growth by implementing the following strategy:
Starting a new business is tough, with most not making it. A Harvard study shows 75% of VC-backed startups don’t gain traction, and an overall startup failure rate is 90%. Common reasons include lack of skills, cash flow issues, and competition.
Venture builders offer a promising solution. They create and launch new businesses using their resources and expertise. Venture building has a 34% exit rate.
These venture builders also deliver higher investor returns. They use existing resources, talent, and experience to support new ventures.
Venture builders support IT startups by providing resources, expertise, and comprehensive support from ideation to scaling. They enhance success rates, reduce risks, and offer access to capital. It leads to higher investor returns and more sustainable business growth.
At GrowthJockey venture building, we help startups navigate challenges and reduce risks to thrive in today’s competitive market.
Our team excels in design thinking, growth consulting, data & AI, and business operations. We offer flexible expertise, helping startups from ideation to market entry without needing permanent hires.
Yes, venture building boosts success rates. Venture builders have a 50% internal rate of return (IRR). In contrast, non-venture builder startups have a 21% IRR. This approach increases chances of success and improves investment returns.
Venture building initiates new ventures from their inception, offering comprehensive operational assistance. Venture capital invests in existing startups with money and advice.
Venture building takes more risk at the start and stays involved longer. It focuses on long-term growth. Venture capital usually exits after reaching financial goals.
GrowthJockey supports IT startups with expertise in AI, machine learning, and digital advertising. We guide startups through strategic growth phases.
We put in place our digital solutions to ensure efficient scaling and market success. Our team provides cutting-edge technologies and targeted strategies for sustainable development.