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Table 1 Common approaches to systematic venture creation

From: Rocket Internet: organizing a startup factory

  Startup factories Business incubators and accelerators Corporate spin-outs Corporate entrepreneurship
Example Rocket Internet Y Combinator Thermo Electron IBM’s EBO system
Approach Assemble and scale new startup companies rapidly Nurture a selected set of startup companies Spin out new businesses into stand-alone companies Conceive, develop, and integrate new businesses internally
Ideation and execution External business model is cloned and executed by newly assembled team Business model is developed and executed by founding teams Business model is developed and executed by spun-out team Business model is developed and executed by internal team
Parent-venture relationship Stand-alone companies with strong parental control and knowledge sharing Stand-alone companies with little parental control and some knowledge sharing Stand-alone companies with medium parental control and knowledge sharing Integrated businesses with strong parental control and knowledge sharing
Main advantage and disadvantage Allows specialization on execution, but depends on supply of external ideas Fosters ideation processes, but does not support execution Combines corporate and startup environment, but is neither fully one nor the other Can leverage all corporate assets, but businesses are dependent on parent