Businessmodel of Venrock

Customer Segments

Venrock has a niche market business model, with a specialized customer segment. The company targets its service at startups in the technology and healthcare industries.

Value Proposition

Venrock offers three primary value propositions: convenience, accessibility, and brand/status.

The company offers convenience by making its process simple for clients. The typical period from initial meeting with a prospect to deal finalization usually does not take very long, lasting from two to six weeks. Once Venrock has decided to invest in a firm, it assists in practically every aspect of building it, including strategy, financing, scaling, hiring, introductions, and exit management.

The company creates accessibility by offering a broad range of options. It services firms in a wide variety of fields within its industries of focus. For technology, those areas include Software and Cloud Services, Security, Healthcare IT, AdTech, Consumer, and Big Data. For healthcare, they include Therapeutics (Biologics and Small Molecules), Medical Devices, and Diagnostics & New Technologies.

The company has established a powerful brand due to its success. It is one of the earliest venture capital firms. It has invested over $2.5 billion in more than 440 companies over the last four decades, resulting in 125 initial public offerings. Its portfolio includes many prominent clients, including Intel, Apple, DoubleClick, 3Com, Millennium Pharmaceuticals, Sirna Therapeutics, and HealthSouth Corporation. Lastly, it has won a number of honors, including Astia Awards in the “Shattered Glass” and “Breaking the Barriers” categories, and induction into the Private Equity Hall of Fame.

Channels

Venrock’s main channels are its business development team and its website. The company promotes its offering through its social media pages and participation in summits and conferences.

Customer Relationships

Venrock’s customer relationship is primarily of a dedicated personal assistance nature. The company assists customers through guidance from assigned employees.

That said, there is a self-service component. The company’s website features an “Insights” section that includes articles featuring ideas, thoughts, and observations from members of the Venrock team. The site also provides access to an e-mail newsletter.

Key Activities

Venrock’s business model entails investing in startups and help them grow.

Key Partners

Venrock does not maintain any formal partnership programs or have any partners of note.

Key Resources

Venrock’s main resources are the fund it uses to invest capital in startups and the employees who advise clients on the use of those funds.

Cost Structure

Venrock has a value driven structure, aiming to provide a premium proposition through significant personal service. Its biggest cost driver is likely investment acquisition expenses including expenses for personnel, travel, and due diligence.

Revenue Streams

Venrock has two revenue streams: management fees it charges clients to oversee their assets and carried interest obtained from profits generated by the startups.