We could say that venture building is about turning an idea into a viable business, but in practice, it involves many different elements, such as identifying potential businesses and markets, finding suitable talent, and securing funding. All of these areas require specific expertise, an understanding of entrepreneurship, and experience in venture building.

Reaktor has a long history of founding new companies within its ecosystem and has several success stories to share. Previously, the startups in Reaktor's ecosystem were born organically, often by investing in an existing startup. Reaktor wanted to explore if there was a systematic way to do this by founding companies inorganically—without an existing founder and initiated by Reaktor.

Building a Playbook

Reaktor sought to find a systematic way to start businesses whenever market demand was identified. As people and teams changed over time, Reaktor had never formalized a coherent playbook for venture building, leaving many best practices untapped. Reaktor was open to hearing our ideas and gaining an external perspective on how to build a systematic playbook.

Reaktor valued Coventures' understanding of the entrepreneurial skill set, talent network, and venture-building experience and invited us to help them with their latest venture, while also creating an internal playbook for Reaktor to develop a more systematic approach.

Identifying the Business Idea and Forming a Team

We began by understanding the market need and drafting a rough concept for a new company. We wanted to ensure we had a clear direction and scope before moving forward. Once the scope was defined, we outlined the required skill sets and began shaping the founding team.

Based on preliminary discussions, our vision of the ideal team started to take shape, and we reached out to our networks to find people with founder potential and the unique skill set we were looking for. Reaktor was committed to ensuring that the founding team would be a winning one, representing top talent.

Together, we identified a founding team with the right skill set and business understanding. Finally, the new company was onboarded into Reaktor's ecosystem. Companies joining Reaktor’s ecosystem gain a head start for their business, benefiting significantly from the network, support, and existing customer base.

As the project progressed, we documented the process and refined the approach to become more systematic.

Results

Through this process, we gained valuable insights into how these businesses can and should be built. We compiled our findings into a playbook that will allow Reaktor to replicate these proven practices in the future and create a more systematic approach to venture building.

Most importantly, we proved that new companies can be built inorganically, without the drive of an existing founder. This discovery will change the way Reaktor builds companies in its ecosystem, making it even easier to respond to market demands.

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Why founders thrive: The essential success drivers behind systematic entrepreneurship

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If you would like to know more about the essential success drivers behind systematic entrepreneurship, read where Marko Oksanen, the CEO & Co-founder of Coventures and Riikka Uimonen, the Investment Director and Co-founder of Fusion Ecosystem share their key takeaways on what drives individuals to become entrepreneurs and how structured processes can help young companies find the right path to fulfill those dreams. Click here to read the article.