VBO

It’s always been challenging to launch new ventures inside an existing business. One way internal startups can overcome some of the disadvantages they face is by seeking out external funding from venture capital firms — a model we call a venture buyout, or VBO.

The VBO structure allows existing companies to tap into the powerful company-building ecosystem of the VC world — and give these companies the same access to the innovation at scale and financial returns that have fueled the rapid ascent of their disruptive competitors.