Key differences: Venture Building vs CVC vs Venture Clienting

Key differences: Venture Building vs CVC vs Venture Clienting

Innovation comes in many flavors. Three of the most common strategies you’ll hear about are Venture Building, Corporate Venture Capital (CVC), and Venture Clienting. All are valid, but they’re very different in how they work, what they require, and when to use them.

Let’s break it down:

Venture Building

What it is:

You build your own startup(s), from scratch. Sometimes internally, sometimes with partners.

How it works:

You identify a problem or opportunity, and then create a new company to solve it. Often, companies run multiple parallel builds, knowing that most will fail and one or two might succeed big.

Pros:

• Full control over the solution
• Can be very strategic and tailored
• Potential for long-term ownership

Cons:

• Expensive and slow
• Requires a dedicated team of builders
• High failure rate, only a few ventures usually make it
• Needs a portfolio mindset to make sense financially

Corporate Venture Capital (CVC)

What it is:

You invest in external startups - just like a VC - but as a company.

How it works:

You put aside investment money and bet on startups that fit your strategic or financial goals. The startups are usually independent companies founded by others.

Pros:

• Financial return potential
• Early access to future tech
• Can offer strategic partnerships

Cons:

• You’re not solving a problem immediately
• Success depends on how good you are at picking winners
• Takes 5-10 years to see ROI
• Often starts with a solution and looks for a problem later

Venture Clienting

What it is:

You buy a startup’s product to solve a specific business problem.

How it works:

You identify a problem inside your company. Then you scout for startups that already have a solution. If you find a fit, you procure and test the solution in a Proof of Concept (PoC), and if it works, implement it.

Pros:

• Fast, lean, and focused on impact
• No need to invest, just procure
• Solves real internal problems
• Lower risk and faster learning

Cons:

• Doesn’t give you ownership or equity
• You need strong internal buy-in to implement

How They Work Together (Yes, They Can!)

These three approaches aren’t enemies, in fact, they can support each other really well:

Final Reminder: Always Start With the Problem

This is key:

Venture Clienting starts with the problem or opportunity. There is always a business-case at the start.

CVC often starts with the solution.

Venture Building starts when no solution exists.

That’s why Venture Clienting is often the most direct path to real innovation impact, and why it can be a smart starting point before jumping into CVC or building.

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