By Akinpelu Babatola
Guest Writer, The Xpress Train

When it comes to talking about startups, you would have most likely come across the term venture builders and all the benefits that come with doing business with them. Venture builders will help you build, launch, and grow your startup idea from the ground up. They come in and save the day, by providing you with all the resources and assistance that your idea will not only need to take off but to also attain a sustainable state. This puts them ahead of incubators and accelerators who only nurture your idea and venture capitalists who are only seeking returns on investment.

With venture builders taking on the bulk of the responsibility of growing your startup idea, learning that things are not always so rosy is often a shock to many. No business model doesn’t come with its own risks and the venture builder model is in no way exempted. It faces challenges such as brand protection, management of intellectual property, commitment issues, and talent sourcing. These challenges are what limit venture builders when it comes to growing an idea. This article will discuss some of these challenges and how venture builders like the Xpress Train deal with them.

The idea of a venture builder is to assist a startup is growing, deciding how much assistance is to be rendered is an arduous task. The more investment that it puts into an idea, the greater the risk that it faces. No business wants to make a loss, while a venture builder seeks the growth of the startup first, the return on its investments is not ignored either. With every bit of effort and capital that is invested into an idea, the risk of making a loss also rises with each passing day. It is little wonder that venture builders have well-defined selection criteria for startups they invest in. 

Commitment is also one of the challenges that a venture builder has to combat. Venture builders, in doing their part, introduce many participants into a startup’s operations. They bring in financial experts as well as management gurus, in a bid to help the startup grow as quickly and as steadily as possible. But there’s a catch, most of these new participants are not usually as enthusiastic and motivated about a startup that they were not involved in its birth in the first place. Their level of motivation is either based on their loyalty to the venture builder or to their pockets. This is easily dealt with by selecting strict criteria that will weed out those lacking in enthusiasm but nonetheless, it is one of the problems that venture builders face.

Sourcing for talent also goes hand in hand with the issue of commitment. Often times, finding the person with the right skills and education that will be just as motivated about the idea is a daunting task. While it is not an impossible task, it is fair to say that for a new business model like venture building will face difficulties when it comes to attracting talent.

These and other challenges are what limit the capacity and extent that a venture builder will assist a startup, but do not fear, venture builders do the job of worrying so you don’t have to. So go ahead and let your ideas blossom.

References

https://medium.com/@jorgegarcialuengo/challenges-and-opportunities-of-the-venture-building-model-abda24b0a1cc

https://www.europeanbusinessreview.com/corporate-venturing-challenges-and-best-practices-of-large-firms-innovating-with-start-ups/

https://creatella.ventures/the-wave-of-venture-builders