Hi there
Is anyone here familiar with the revenue model of BCG DV? Do they charge a fee for building ventures for clients? Or is their staffing cost absorbed by BCG DV and they take an equity stake in the ventures they build with clients?
Many thanks
Hi there,
Great question! BCG DV is a venture builder that typically partners with established companies to develop new innovations and spin them out into fully fledged businesses. As with any venture builder out there, BCG DV takes an equity stake in these new businesses, shared with the companies they partner with.
The partner companies will typically provide access to data, resources, industry experts, and initial investments - while BCG DV will bring together a team of strategists, designers, product managers, and engineers to build, launch, and scale the new business.
Through this equity model, BCG DV can participate in the potential upside of the new business, while also putting “skin in the game” by taking part in the risk associated with it and providing a certain guarantee on the outcome. This is opposite to the traditional consulting fee model where firms typically charge a “fixed” rate dependent on deliverables with limited guarantee on outcomes/impact.
Hope this helps!
Rami
Hi Gootash,
Rami gave an excellent answer here. By the way, this is a fantastic networking question to ask! Gets the conversation going and shows genuine interest in the business.
Hi there,
One point to add here - since this is such a fast growing practice, the arrangements they have with clients tend to be quite flexible and constantly evolving. Rami gave a great overview of the default option, but the arrangements are also negotiated on a case by case basis.
Best,
Cristian
Hello!
Can´t be Rami here, he gave you the best possible answer!
Use this to network also, although careful, since it sounds a bit as if you are trying to understand the business model and replicate it ;) ;)
Cheers,
Clara
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