Collaborative Venture Building (CVB)

Collaborative venture building (CVB) is a model for creating new companies in which several partners, typically one or more established corporations, outside investors and a specialist venture studio, jointly identify an opportunity, design the business, provide capital and staff, and launch it as a separate start-up. It differs from traditional venture capital, which invests in companies that founders have already started, and from purely internal corporate innovation. Each partner contributes something specific, such as industry data, customers, distribution, money or start-up expertise, and receives equity in return. The model is used in fintech, where banks may co-build ventures with studios, and in crypto, where foundations or ecosystems back studios that launch projects on their networks. Its risks include slow decisions and conflicts among partners. Also see Deal Flow.