In recent years, the Brazilian market has evolved with two innovation approaches: venture capital invests in established businesses with growth potential, while venture building establishes new companies in collaboration with founders. A new model, venture service, caters to corporations and investors looking for efficiency, speed, and tangible outcomes.
Many companies typically view new business initiatives as cost centers, dependent on the central budget and only engaged when results are under pressure. The venture service aims to change this approach by designing each new business as a result center with its own governance, metrics for financial generation, and potential for spin-off when strategically appropriate.
This approach integrates the process of starting a business with the reliability of service agreements. Instead of functioning like typical funds, accelerators, or incubators, it operates as a service partner that assists in developing business ideas, establishing operations, and supporting the business until it can operate independently. In essence, this allows companies to quickly launch new ventures with clear contract terms, measurable returns on investment, and operational independence from the outset.
The venture service not only accelerates startups but also enables corporations to acquire efficiency, operational structure, and control. This helps in avoiding situations where ideas remain stagnant in innovation labs, leading to wastage of resources without producing outcomes. By creating their own research and development initiatives, business units can generate profits and seamlessly integrate into the company’s ecosystem.
The model’s effectiveness lies in combining a startup’s operational rigor with a service’s predictable contracts. Each contract specifies key deliverables like product development, scalable technology, market validation, financial planning, and initial operations, giving new businesses a strong foundation for growth and efficiency.
This shift demonstrates changes in the ecosystem. The upcoming wave of innovation in Brazil will focus on efficient, profitable units that complement rather than compete with the core business. The venture service aims to establish impactful businesses aligned with the corporate strategy through practical and well-coordinated execution.
Brazil requires operational businesses that can effectively manage finances and sustain long-term growth, rather than just promising ideas that never materialize. The venture service aims to achieve this by turning innovation into tangible outcomes through synergy, governance, and predictability from the outset.
Renan Georges is the Creator and Chief Executive Officer of Zavii Venture Builder.
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