From Corporate to Startups, Which Model to Choose?

Corporate Venture Building is a strategic approach where a large company, or "corporate," creates and develops new startups. Instead of simply investing in existing startups, the corporate takes on the process of creating and launching new businesses from scratch. This method combines the agility and innovation of startups with the resources and expertise of large companies.

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Key Characteristics of Corporate Venture Building

1. Idea Generation:

• Market Opportunity Identification and Needs Assessment arise from internal needs or stratefic positioning.
• Utilization of their expertise to provide an unfair advantage.

2. Team Formation:

• Formation of teams consisting of entrepreneurs, developers, designers, and industry and company experts.
• Collaboration with external talents if necessary.
• Utilization of the financial, technological, and human resources of the parent company.

3. Launch and Scaling:

• Launching new products or services in the market.
• Continuous support for scaling and expansion of the new businesses.

4. Co-Ownership Model:

• Implementation of co-ownership models to align the interests of entrepreneurs and the company.
• Sharing of risks and benefits among different stakeholders.

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Advantages of Corporate Venture Building

• Accelerated Innovation: Promotes rapid innovation by enabling the creation of new businesses without traditional bureaucratic constraints.‍
• Optimal Resource Utilization: Leverage the resources and expertise of the company to increase the likelihood of success.‍
• Diversification: Enables the company to diversify and enter new markets.‍
• Risk Reduction: By investing in multiple entrepreneurial projects, risks are spread and managed more effectively.

The Corporate Venture Building model is similar to those we have seen in previous articles such as the "Corporate Venture Studio" or the "Corporate Startup Studio," isn't it?

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Difference between an Intrapreneurship and a Corporate Venture Building

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Although the terms Intrapreneurship and Corporate Venture Building are often used interchangeably, they represent two distinct approaches to creating and developing new startups within a large company. Here are the main differences between these two concepts:

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Key Characteristics:

• Active Ideation: Proactive generation of new ideas within the studio.
• Team Formation: Recruiting and assembling multidisciplinary teams for each project.
• Centralized Development: All development activities are centralized within the studio.
• Internal Resources: Utilization of the company's internal resources to support the projects.
• Focus on Creation: Emphasis on creating startups from scratch.

Advantages:

• Total control over the creation and development process.
• Ability to closely integrate new startups into the company's ecosystem.

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Corporate Venture Building

‍Definition:

The Corporate Venture Building is a broader and more strategic approach where a large company creates and develops new businesses or startups internally. Unlike a studio, venture building often involves closer collaboration with both internal and external resources and may include a more diverse range of activities.

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Key Characteristics:

• Strategic Approach: Identification of market opportunities.
• Extended Collaboration: Collaboration with internal and external talents, including entrepreneurs, developers, and experts.
• Utilization of Company Resources: Access to the financial, technological, and human resources of the parent company.
• Launch and Scalability: Launching new ventures and providing ongoing support for scaling.
• Co-Ownership Model: Aligning the interests of entrepreneurs and the company through co-ownership models.

Advantages:

• Diversification of the company's activities.
• Risk reduction through investment in multiple projects.
• Flexibility to adapt to market opportunities and emerging needs.

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In summary, a Corporate Venture Studio primarily focuses on idea generation and startup creation from scratch within a centralized entity, while Corporate Venture Building takes a more strategic and flexible approach, involving extensive collaborations and diversification of the company's activities.

The Corporates are thus faced with a subtle choice among three models that it is necessary to know well to make the right decision. A summary of the differences between these three concepts is therefore necessary:

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Differences between Corporate Startup Studio, Intrapreneurship, and Corporate Venture Building

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Corporate Startup Studio

‍Definition :

A Corporate Startup Studio is an internal entity dedicated to creating new startups from scratch. It actively generates business ideas, forms teams to lead and develop these startups until they mature, before launching them as independent entities or integrating them into the operations of the parent company.

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Key Characteristics:

- Proactive Ideation: Actively generating new ideas within the studio.

- Team Formation: Recruiting and assembling multidisciplinary teams for each project.

- Internal Resources: Utilization of the company's internal resources.

- Focus on Creation: Emphasis on creating startups from scratch.

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Comparison of the 3 Models:

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Conclusion

In summary, a Corporate Startup Studio focuses on creating startups from scratch primarily using internal resources. An Intrapreneurship goes further by structuring and accelerating startups, leveraging both internal and external resources.

The Corporate Venture Building takes an even more strategic approach, diversifying the company's activities through the creation of new enterprises with extended collaboration and a combined utilization of internal and external resources.