Venture builders achieve 30% higher startup success rates than traditional ventures by combining operational expertise, capital, and shared resources to build companies from the ground up.
Over 1,100 active venture studios operate globally, launching 3-6 startups per year with seed funding success rates of 84% compared to 15-20% for traditional startups. Studios like Atomic, Hexa, and Polymath Ventures have produced unicorns including Hims & Hers, Front, and Spendesk.
The Startup VC operates as a family office and company builder focused on B2B services in Latin America. Below you will find how the venture builder model works, its advantages, and why Latin America offers unique opportunities for this approach.
What Is a Venture Builder?
A venture builder is an entity that houses resources, capital, and expertise to efficiently start new companies. These companies come from internal idea generation only. This distinguishes venture builders from incubators and accelerators.
Venture builders do not accept outside applications for business ideas. They do not invest in external startups. Instead, they create and develop ventures using their own teams and resources.
These entities run multiple companies and projects at one time. They allocate capital and team members to each venture. Each company gets a separate name and brand identity. However, all companies remain under the venture builder’s umbrella.
The venture builder acts as the largest equity shareholder in its portfolio companies. Studios typically take 30% to 60% equity at incorporation. This compensates for the resources, capital, and operational support they provide.
How Does the Venture Builder Model Work?
The venture builder model works by systematically bringing companies into existence using internal resources. Studios like Atomic, Hexa, and High Alpha focus on five main activities.
- Generating and identifying new business ideas
- Building teams for each individual venture
- Providing initial capital and ongoing funding
- Managing portfolio companies at a distance
- Delivering shared services across all ventures
Building teams is one of the most critical activities. Studios recruit experienced founders and operators to run each venture. Once a team forms, the parent company manages the venture while providing resources and tools.
Mature studios launch between 3 to 6 startups per year. They evaluate hundreds of ideas annually. Studios kill approximately 85% of concepts during the validation phase before deploying significant capital.
Through these activities, venture builders achieve their main goal: acceleration of business ideas and company creation.
What Are the Advantages of Venture Builders?
The advantages of venture builders include faster funding, higher success rates, shared resources, and reduced operational costs. Data from 2023-2025 confirms these benefits.
Venture studio startups achieve an 84% seed funding success rate. Traditional startups achieve only 15-20%. Studios also convert 72% of seed-funded companies to Series A, compared to 42% for traditional ventures.
Studio ventures reach Series A funding in an average of 25.2 months. Traditional startups take 56 months. This 55% time compression results from pre-built infrastructure, shared codebases, and established legal frameworks.
Portfolio companies can leverage each other’s knowledge. Because companies share resources and capital, cross-referencing ideas and techniques is encouraged. This creates “parallel entrepreneurship” across the portfolio.
Fixed costs like legal, HR, and finance fall under the venture builder’s umbrella. Each department services all portfolio companies. This reduces operational costs for each individual venture.
Venture builders provide a safety net during uncertain economic conditions. Portfolio companies have resources and tools to fall back on during hardship. Studios also help companies navigate bureaucratic and regulatory processes more efficiently.
How Do Venture Builders Compare to Venture Capital?
Venture builders differ from venture capital firms in operational involvement and equity structure. VCs manage portfolios of financial assets. Venture builders manage portfolios of operational projects they helped create.
Traditional VCs typically take 10-20% equity. Accelerators like Y Combinator take around 7%. Venture builders command 30-60% ownership to compensate for operational resources invested.
The internal rate of return for venture studio investments averages 53%. Traditional VC investments average 21.3%. This 2.5x difference reflects the studio model’s operational advantages.
Studio-backed companies exit in approximately 4 years. Traditional startups take 6-7 years. The faster exit timeline benefits both the studio and its limited partners.
Why Is Latin America Attractive for Venture Builders?
Latin America is attractive for venture builders because of its timing, growing tech ecosystem, and government support for startups. The region invested $4.2 billion in startups in 2024, a 27% increase from the prior year.
Brazil captures nearly 50% of the region’s venture funding. Its digital payments infrastructure, including Pix, created fertile ground for fintech builders. Mexico captures roughly 20%, driven by logistics and nearshoring tech.
Colombia serves as a growing hub for PropTech and logistics. Bogota hosts major regional builders like Polymath Ventures. See our list of the best venture builders in Colombia. Chile houses Digevo, which focuses on AI and B2B solutions across Pacific Alliance countries.
Latin American governments invest heavily in startup creation and success. This attracts curiosity and investment from foreign investors. The region’s resources and trade blocs add further appeal.
Which Venture Builders Operate in Latin America?
Several venture builders operate in Latin America, including Polymath Ventures, Fisher Venture Builder, Digevo, and FCJ Venture Builder. Each has adapted the global model to local market needs.
Polymath Ventures in Colombia focuses on the emerging middle class. Their portfolio includes Autolab, a chain of digitized auto repair shops. They use anthropological research to identify market frictions.
Fisher Venture Builder in Sao Paulo focuses on fintech and proptech. Their portfolio company Atta was acquired by QuintoAndar, one of Brazil’s largest unicorns. Fisher was the first Brazilian builder to join the Global Startup Studio Network.
Digevo in Chile focuses on AI and emerging technologies. Their Darwin algorithm validates ideas at scale across Chile, Colombia, Mexico, and Peru. Portfolio companies include Dentidesk and Petfy.
Venture builders in Latin America use the region’s economic and political climate to their advantage. They pool and share resources among ventures to help ensure success. Studios efficiently navigate bureaucratic processes that slow traditional startups.
What Notable Exits Have Venture Builders Achieved?
Notable exits from venture builders include Wiz ($32 billion to Google), Hims & Hers (IPO), and Auth0 ($6.5 billion to Okta). These exits validate the studio model’s ability to produce category-defining companies.
Cyberstarts’ portfolio company Wiz was acquired by Google in 2025. The $32 billion deal is the largest venture-backed software exit in history. Cyberstarts invested $6.4 million at seed for a 222x return.
Hexa (formerly eFounders) has produced three unicorns: Front, Spendesk, and Aircall. The Paris-based studio aims to launch 30 startups per year by 2030.
High Alpha’s portfolio company Lessonly was acquired by Seismic. Team8’s Dig Security and Talon Cyber Security were acquired by Palo Alto Networks for approximately $1 billion combined.
Frequently Asked Questions About Venture Builders
How Much Equity Do Venture Builders Take?
Venture builders typically take 30% to 60% equity at incorporation. This is significantly higher than traditional VCs (10-20%) or accelerators like Y Combinator (around 7%). The higher stake compensates for operational resources, initial capital, and hands-on company building support.
What Is the Success Rate of Venture Builder Startups?
The success rate of venture builder startups is 30% higher than traditional startups. Studio-backed companies achieve an 84% seed funding success rate compared to 15-20% for traditional ventures. They also convert 72% of seed rounds to Series A, versus 42% for traditional startups.
How Long Does It Take a Venture Builder Startup to Raise Series A?
A venture builder startup takes an average of 25.2 months to raise Series A funding. Traditional startups take 56 months. This 55% time compression results from pre-built infrastructure, shared resources, and established operational playbooks.
What Is the Difference Between a Venture Builder and an Accelerator?
The difference is that venture builders create companies internally, while accelerators support external startups. Accelerators accept applications from existing founders and provide mentorship for a limited period. Venture builders generate ideas in-house, recruit founders to run them, and maintain long-term operational involvement. See our detailed guide on the difference between a company builder and accelerator.
Do Venture Builders Accept Outside Startup Applications?
No, venture builders do not accept outside startup applications. They generate all business ideas internally and build companies using their own teams and resources. This distinguishes them from incubators, accelerators, and venture capital firms that invest in external founders.
Ready to Build Your Next Venture?
The Startup VC is a family office and company builder focused on creating scalable B2B service ventures across Latin America. We provide hands-on mentorship, operational expertise, and capital to help founders succeed.
Contact us today to explore opportunities.
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