Venture builder (VB) companies help start-ups to successfully build a business, according to Dan Cobley CEO at Brightbridge Ventures.
The former MD for Google UK and Ireland told an audience of tech experts at Interop London that the biggest barrier against VB are entrepreneurs that "just want to be rich".
He said: "If they think they are great, then they can go the solo route."
Cobley unveiled that start-ups that go through a VB scheme are more likely to become profitable. "With VB for example, start-ups get £1.5m profits per year for three years, while the solo route gives about £0.4m in the course of five years," he said.
Cobley defined that in order to succeed, businesses need a business model development allied with financing baking, and legal, finance and HR support.
The CEO added that start-ups "especially" need a network of enablers, intra company deep contribution, board investment, and "work side by side" instead of "not sharing the same physical space".
With Brightbridge, Cobley said in the company’s portfolio showcases several examples when £5 million were initially invested and start-ups go to the "way out with £25 million".
According to Cobley, this is because in "VB over 75% of time is spent doing business" in contrast to about 35% for those following the "traditional route".
He said: "VB offers trade ownership for speed with pain-free funding and more time to build business.
"Companies have trade control for experience and support, with trading size of ‘jackpot’ for lower risk and high risk-weighted return."
The entrepreneur’s perspective of VB gives them an opportunity to not be "distracted by fundraising" increasing speed to market.
The CEO said this concept offers a salary to those looking to build a company and also avoids loneliness throughout the process by providing office space and support.
Cobley added: "Not all good ideas will get funded by VB. Start-ups will have to take their idea to a VB in a time partners are ready for it.
"With Brightbridge, it might only take four weeks from the idea presentation to the funding."
Brightbridge is a UK based company, so it can be "hands on and helpful all the time". It invest £1 million to £10 million in one to three companies a year.
Cobley said the main focus of the enterprise lies on consumers and SMEs.