Business innovation has evolved beyond traditional R&D. Today, both large corporations and SMEs adopt models such as corporate venturing, venture building, and open innovation to grow, diversify, and collaborate with startups and other players in the innovation ecosystem.
In this guide, we explain what each model is, how they differ, and which is most suitable depending on the type of company.
What Is Corporate Venturing?
Corporate venturing is an innovation strategy through which an established company invests, collaborates, or creates startups with the goal of exploring new markets, accessing emerging technologies, or generating strategic growth.
This model is common among large companies and multinationals, as it requires capital, structure, and a long-term vision.
Types of Corporate Venturing
- Corporate Venture Capital (CVC)
- Corporate accelerators and incubators
- Venture client programs
- Corporate spin-offs
- Joint ventures with startups
Venture Building: Creating New Businesses from Within the Company
Venture building is based on the creation of new companies or internal business units, leveraging existing assets such as technology, knowledge, data, or customer access.
Unlike corporate venturing, venture building does not invest in external startups, but rather builds new ventures from scratch using entrepreneurial methodologies.
What Companies Use Venture Building?
- Corporates
- Scaleups
- Family businesses
- Innovative SMEs
Benefits of Venture Building
- Full strategic control
- Alignment with core business
- Creation of proprietary assets
- Fostering internal entrepreneurial culture
Open Innovation: Open Innovation and External Collaboration
Open innovation is a model that promotes collaboration with startups, universities, technology centers, customers and partners to accelerate innovation and reduce risks.
This approach is based on a key principle:
the best ideas are not always inside the company
Open Innovation in SMEs
Open innovation is especially relevant for SMEs because:
- It does not require large investments
- It is flexible and scalable
- It enables innovation with limited resources
Many SMEs apply open innovation without calling it corporate venturing, although conceptually they are very close.
Differences Between Corporate Venturing, Venture Building, and Open Innovation
Model | Investment in startups | Creation of new businesses | Type of company |
Corporate Venturing | Yes | Sometimes | Large companies |
Venture Building | No | Yes | Corporates, SMEs |
Open Innovation | Not necessarily | Sometimes | All |
Which Innovation Model Is Best for Your Company?
There is no single model. The most advanced organizations combine all three approaches:
- Open innovation to explore external opportunities
- Corporate venturing to invest strategically
- Venture building to create proprietary businesses
The choice depends on the company’s size, resources, and strategic objectives.
At Jakaton Ventures, we work comprehensively across all three approaches: corporate venturing, venture building, and open innovation, adapting them to the reality and maturity of each organization. We do not believe in one-size-fits-all models or standard solutions, but in innovation strategies aligned with real business objectives.
We support large companies as well as SMEs and scaleups in the design and implementation of:
- Open innovation strategies to collaborate with startups and technology partners
- Corporate venturing programs focused on strategic growth and exploration of new opportunities
- Venture building initiatives to create new businesses from internal assets
Our approach combines strategic vision, agile execution, and knowledge of the entrepreneurial ecosystem, enabling companies to innovate with impact, minimize risks, and accelerate results.