Company Builder - Everything you need to know

Company builders are businesses that create and launch new startups. They typically run incubator or accelerator programs where they offer funding, mentorship, access to a network of industry experts and resources to help startups succeed. Company builder often have a specific focus and may target a particular stage of development. The article also explores how to join a company builder, what to consider before joining, and how company builders differ from traditional accelerators and incubators. Learn more about the advantages of joining a company builder and potential drawbacks to consider. - Author: Jona Hauch

Main Takeaways 

• A company builder is a type of organization that focuses on incubating and launching new businesses.
• Company builders typically provide resources such as funding, mentorship, and support to the entrepreneurs they work with.
  
• These organizations often have a specific industry or sector focus, and may also have a specific business model or approach to building companies.
• Company builders can be a valuable resource for aspiring entrepreneurs looking to start their own business, as they provide access to expertise, resources, and networks that may be difficult to access otherwise.
• Successful company builders are often able to identify and support promising ideas and founders, resulting in the creation of successful and innovative businesses.
  

What is a company builder?

A company builder is a business that creates and launches new startups. These companies often have incubator or accelerator programs that provide support, resources, and guidance to help the startups they build succeed.

The goal of a company builder is to identify promising ideas or businesses and turn them into successful ventures. This process typically involves providing financial support, mentorship, and access to a network of industry experts and resources.

Company builders often have a specific focus or niche, such as technology, healthcare, or sustainability. They may also have a particular stage of development they target, such as early-stage startups or companies ready for scaling.

One example of a company builder is BFG Superstars, a web3-focused incubator program that provides mentorship, resources, and (pre-)seed funding to a cohort of entrepreneurs twice a year. In this particular case, entrepreneurs can participate even if they do not yet have a specific business idea. At the end of the program, the startups pitch their businesses to a group of investors in the hopes of securing additional funding.

Company builders differ from traditional venture capital firms in that they often take an active role in the development and growth of the startups they fund. This can include ongoing support and guidance, access to marketing and PR resources, and providing office space.

Advantages and disadvantages of company builders

While company builders can offer numerous benefits for aspiring entrepreneurs, there are also some potential drawbacks to consider.

Advantages of company builders:

1. Funding: Many company builders offer seed funding to the startups they work with, which can be a major advantage for entrepreneurs who are struggling to secure financing from traditional sources.
2. Mentorship: Most company builders have experienced entrepreneurs and industry experts on staff who can provide valuable mentorship and guidance to the startups they work with. This can be especially helpful for first-time entrepreneurs who may not have a strong network of advisors.
3. Network: Company builders often have a large network of industry professionals and investors who can provide valuable connections and opportunities for the startups they work with. This can be a major advantage in terms of marketing, fundraising, and overall business development.
4. Structure: Company builders typically have a structured program that helps entrepreneurs focus on specific milestones and goals. This can be helpful for entrepreneurs who may struggle with self-direction or who need guidance on what steps to take next.
   

Considerations before joining company builders:

1. Equity: Many company builders will ask for equity in exchange for their services, network, advisory, and funding. The give and take should be in fair proportion to each other.
2. Time commitment: Participating in a company builder program can be a significant time commitment, as it often involves attending regular meetings, workshops, and other events. 
3. Focus vertical: Company builders often have a specific program tailored towards a vertical or industry that may not be the best fit for every startup. Take a detailed look at the program description before applying to a company-building program.

How can I join a company builder, and what to consider

Joining a company builder can be an exciting opportunity for professionals looking to get in on the ground floor of a startup and be a part of building something new. But before making the leap, it's important to consider a few key factors to ensure that it's the right fit for you.

First and foremost, it's important to research the company builder and understand what they do and what their track record is. Look for reviews and testimonials from past participants or employees, and ask for introductions to people who have previously worked with the company builder. This will give you a good sense of what to expect in terms of the culture and work environment, as well as the level of support and resources available to you.

It's also important to consider the stage of the startups that the company builder works with. Some company builders focus on early-stage ideas, while others work with more established businesses. Think about where you are in your career and what kind of experience you're looking for. Are you comfortable working in a high-risk, high-reward environment, or prefer a more stable and structured one?

Additionally, consider the compensation and benefits offered by the company builder. Some offer funding in the startups they work with, while others provide compensations and benefits packages. Determine what works best for you and whether the trade-offs are worth it.

Finally, think about the long-term goals you have for your career. Joining a company builder can be an excellent opportunity to gain experience and build a network, but it's important to consider whether it aligns with your long-term career aspirations. Joining a company builder is a personal decision that requires careful consideration. By researching and thinking about what's important to you, you can decide whether it's the right fit for you.

How company builders differ from traditional accelerators and incubators

Company builders, also known as venture builders, are a relatively new phenomenon in the world of entrepreneurship. They differ from traditional accelerators and incubators in several key ways, and it's important for aspiring entrepreneurs to understand these differences to determine which type of support system is right for their business.

One major difference between company builders and accelerators or incubators is the level of involvement in the creation and development of a startup. While accelerators and incubators provide resources and support to help entrepreneurs grow their businesses, company builders take a more hands-on approach. They often bring in a team of experts to work alongside the entrepreneur, providing guidance and support throughout the entire process of building a company from the ground up.

Another key difference is the ownership structure of the companies that come out of these programs. In traditional accelerators and incubators, the entrepreneur retains full ownership of their company. However, in a company builder model, the startup studio often takes a percentage of ownership in the companies they help create. This can be seen as a trade-off, as the entrepreneur gives up a portion of their ownership in exchange for the support and resources provided by the company builder.

Finally, company builders often take a longer-term approach to their partnerships with entrepreneurs. While traditional accelerators and incubators are often focused on short-term growth and profitability, company builders are more interested in building long-term, sustainable businesses. This means that they are often more willing to invest time and resources into the development of a company, even if it takes longer to see a return on their investment.

Company builder examples

Some examples of company builders include:

1. BFG Superstars is a global company builder that helps entrepreneurs develop Web3 ideas into successful businesses. The company provides support in the form of financial support, coaching, and access to a network of experts and advisors. BFG focuses on companies in the web3 sector and has helped launch businesses in areas such as DeFi, NFTs, crypto, metaverse, CO2 compensation, and gaming.
2. Y Combinator is a well-known accelerator program that provides seed funding, resources, and mentorship to startups in the technology sector. The program runs twice a year and culminates in a Demo Day where founders pitch their companies to a room full of investors.
3. Antler is a global company builder that helps entrepreneurs develop their ideas into successful businesses. The company provides support in the form of funding, coaching, and access to a network of experts and advisors. Antler focuses on companies in the tech sector and has helped launch businesses in areas such as fintech, e-commerce, and health tech.
4. Techstars is another well-known accelerator program that provides funding, mentorship, and resources to startups in a variety of industries. The program runs in various locations around the world and focuses on helping founders develop their businesses and build relationships with investors and customers. Techstars has helped launch over 2,000 companies.
5. Seedcamp is a European company builder that provides early-stage funding, mentorship, and resources to startups in the tech sector. The company has a strong focus on diversity and has helped launch businesses in areas such as artificial intelligence, fintech, and e-commerce.
6. The Family is a company builder and venture capital firm based in Paris that helps founders develop their businesses and scale them to the next level. The company provides funding, coaching, and access to a network of experts and advisors. The Family focuses on companies in the tech sector and has helped launch businesses in areas such as artificial intelligence, fintech, and e-commerce.
   

Conclusion and final thoughts on company builders

Based on the information gathered, it can be concluded that company builders are organizations that help entrepreneurs develop and launch successful businesses. They provide various resources, including funding, mentorship, and networking opportunities, to support the growth and sustainability of startups. Company builders typically have a specific focus or industry they specialize in, and they often work with a cohort of companies at a time. Overall, company builders can be a valuable asset for entrepreneurs looking to turn their ideas into successful ventures.

About Blockchain Founders Group

Blockchain Founders Group (BFG) is the driving force behind web3 innovation. As a company builder, we bring together a team of blockchain visionaries, experienced entrepreneurs, and industry experts, all committed to nurturing emerging talent. Our BFG acceleration programs serve as your springboard for launching blockchain startups, transforming concepts into reality in just 2-3 months. Each cohort develops 5-8 unique web3 ideas, and selected projects will be financially supported with 70,000 - 100,000 EUR, along with access to our extensive network. Join us in shaping the future of web3!

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Contact: Max Zheng, Director of Investments, max.zheng@blockchain-founders.io