Level 3 - Cross-cutting Variables

These variables apply to any venture builder regardless of top-level category. Use them for mapping (characterising individual builders) and for policy analysis. The table shows how each variable manifests differently across the three categories.

VariableIndependentCorporateUniversity / Research-linked
Venture originInternal ideation, external founder recruitment, or IP scouting - all are valid variants of the same independent modelInternal corporate ideation or open innovation from external founders/startups - determined by the parent's strategic agendaResearch IP, faculty knowledge, or student ideas originating from the linked institution - venture origin and governing entity are the same
Funding modelFund model (management fees + carry), balance-sheet model (equity returns reinvested), bootstrapped, or hybrid combinationCorporate parent budget; may raise external co-investment but the parent sets the financial mandateUniversity budget, institutional funds, grants, TTO royalties, endowment. Key: IP contribution by researchers replaces the financial investor role
Value capture / equityDirect equity (30–80% typical); sometimes revenue share or licensing; return measured against fund or balance-sheet performanceEquity stake, IP retention, licensing to parent, or spin-out valuation at transfer - return measured against parent's strategic objectivesLicensing arrangements, equity kept low (<20% total to keep cap table VC-ready), royalty share, or revenue share. Non-standard by design.
Team modelPermanent in-house operator team + recruited entrepreneurs-in-residence; external specialists as needed; fully commercial HR termsInternal corporate team; may include EIRs recruited externally; often constrained by parent HR frameworks and compensation structuresFaculty as IP source and technical advisor; EIRs as operational founders; studio team as operators. Three distinct roles rarely held by one person.
GovernancePrivate board; founders or fund LPs control; often dual-entity (operating studio + investment fund); fast decision-making by designCorporate governance hierarchy; studio is a subsidiary or business unit; strategic decisions routed through parent structures3A: full institutional governance. 3B: separate legal entity, institution as owner, professional board. 3C: multiple institutions as joint stakeholders.
Geographic scopeCity/national to global; no geographic mandate; follows market opportunityAligned to parent company's geographic footprint and markets; increasingly global as corporates internationaliseTypically single-institution or regional; multi-institution (3C) models are cross-border by design; geography follows research strength not market opportunity
Stage of entryIdea / pre-formation; typically exits active involvement at Series A–B when venture can stand independentlyIdea to pilot; corporate parent may stay actively involved beyond formal spin-out if strategic dependency continuesPre-IP-disclosure to venture formation; longer runway than commercial builders; deep-tech and life sciences require extended involvement (3–7 years typical).
Sub-types
  • 1AOperator-led
  • 1BCo-founder
  • 2ASpin-out
  • 2BInternal transformation
  • 3AFully embedded
  • 3BStructurally separated (institution-owned)
  • 3CMulti-institution
Additional cross-cutting variables - apply to all categories
Sector focus: horizontal (generalist) or vertical (sector-specialist - health, climate, fintech, defence, deep tech)Team model: permanent in-house operators / EIRs / rotating external specialists / mixedGovernance model: private board / corporate hierarchy / hybrid institutional board / multi-stakeholderPortfolio size & pace: number of ventures built per year; simultaneous vs sequential buildingVenture origin (Level 3 detail): internal ideation / external founder / research IP / commissioned briefSource quality: confidence level in classification during mapping (high / medium / low / boundary case)