The takeover of startups threatens the existence of traditional business models. As with most competitive markets, the fast-paced displacement of large institutions is real and apparent. It is being filled with startup empires, turning it into an innovation-driven environment that most companies had feared.
But as the space has evolved over the past few decades, some large corporations have become increasingly alarmed. They have set up their own internal venture creations, leveraging their internal and external resources to stay ahead of others. These companies are known as internal accelerators or venture builders of today’s modern economy.
The Philippine venture building landscape
Although most venture builders operate in more developed countries, they also play a significant role in directing the course of corporate innovation in emerging economies. In the Philippines, the leading players in the industry are Smart & PLDT, UnionBank, and Globe Telecom Inc. where they have established their own innovation hubs— its respective creations are as follows: Voyager Innovations, UBX Philippines Corp., and 917 Ventures.
These developments are on its way to revolutionize their respective industries. To put this into perspective, we can further investigate the case of UnionBank. One of its internal venture creations, UBX Philippines Corp., plays an active role in integrating innovative technology in the industry. At present, it has launched multiple products, business models, and other initiatives under its name.
One of its products includes GlobalLinker, an online platform that connects small and medium-sized enterprises to its supply chain and target market. It has also created Akin, a digital software that provides a convenient identity verification process for online transactions. Furthermore, some other initiatives are Sentro and Bux. These are online payment platforms that cater to Business to Business (B2B) and end-to-end types of business models.
Moreover, its other investments are also focused on blockchain technology. It has developed the i2i network— a blockchain platform that regulates monetary transfers between different financial institutions. Since then, it has been widely used, especially granted its relevance during the COVID pandemic.
By 2020, UBX has been described as the “Fastest Growing FinTech in Southeast Asia 2020” by the Global Brands Magazine— a media company located in the UK.
Venture building as an ecosystem
Contrary to other startup models, internal accelerators have an edge over others. By providing shared resources, its built-in synergy accelerates its innovation process. Some of its roles in building startups are as follows:
- Capital Accumulation. Venture builders have secure sources of financial capital. It is acquired either through their own accounts or through their connections with external entities.
- Human Resources. From the get-go of building teams, venture builders have the advantage of recruiting in-house talents. Their trained experts in multiple disciplines are launched into their startup creations, seeking to leverage expertise and experience in a more dynamic economy.
- Other Shared Resources. Venture builders capitalize on their pre-existing resources when building companies. Some of these include knowledge, methodologies, and services in different departments.
Ultimately, this business model creates an ecosystem of shared networks. Because it operates under the principle of sharing, it establishes a unified structure among its different businesses. Its multiple parts are expected to have an internal culture of trust, deal flow, attentiveness, and determination.
Today’s startup economy is quickly evolving. But even in this case, big corporations still have the capacity and the resources to compete in this economy. Whether venture builders will be the leading business model in the industry is still open to future trends.