You need to create sub companies within companies

By 20VC

Categories: VC, Startup

Summary

The CEO of Revolut has created 26 mini-companies within his fintech unicorn, each operating at startup velocity with the founder's mentorship. This framework allows large companies to maintain the agility and innovation of startups.

Key Takeaways

1. Create 'mini-companies' within your larger organization to drive innovation and agility at scale.
2. Leverage your CEO/founder as a mentor and investor to guide these internal startups.
3. Empower these internal teams to operate with the velocity of independent startups.
4. Monitor and support these internal ventures closely to maximize their chance of success.
5. Determine annual investment levels based on performance to incentivize high growth.
6. Cultivate an entrepreneurial culture by allowing employees to lead these internal ventures.

Topics

• Internal Incubators
• Founder-led Innovation
• Corporate Entrepreneurship
• Agile Scaling
• Startup Velocity

Transcript Excerpt

You need to create sub companies within companies. I'm very close to Nick and the Revolute team. The best thing that Revolute have done is they've created this kind of incubator for new products. They have 26 new products running all the time at Revolute. And then Nick essentially acts as a mentor as an investor where every year he will either invest more or less into a new company or new product. And why it's so good is because when you're at the scale of Revolute today, it creates 26 companies...