There is a clear problem with the way startups are funded and supported in the technology industry. According to Forbes, 9 out of 10 startups will inevitably fail, leaving a trail of wasted capital, tarnished careers, and job loss. One Montreal, Quebec company is looking to change the way businesses are built and improve the odds for new ventures under its banner, and that company is called Momentum Ventures.
Founded in 2007, Momentum Ventures has truly refined the process of building winning businesses. With a diverse back catalogue that includes online streaming, advertisement serving platforms, and online travel websites, Momentum Ventures’ can accurately claim it has a perfect record of launching online businesses, going seven for seven since 2007.
But what separates this company from traditional venture capitalists? As we mentioned previously, the traditional venture capital model, while historically tolerated, leaves something of a body count when it comes to building online businesses. Much like the volatility associated with the stock market, venture capital has an insanely high acceptance for failure and tends to focus on finding the next big thing. Don’t just take it from me, even Microsoft Co-Founder Bill Gates has described venture capital hit rate as “pathetic.” Momentum Ventures’ goal, aside from building winning businesses, is reducing, and potentially eliminating, the risk associated with launching businesses by focusing on a few key strategies.
Firstly, Momentum Ventures does not gamble on consumer adoption, choosing to instead work within proven business models when developing new properties. Momentum Ventures CEO Matthew Keezer embraces this strategy based on his belief that innovation isn’t directly related to making breakthrough products, saying “some believe that extreme levels of risk is necessary for true innovation,” adding “I believe innovation can be found in emulating and improving on existing business models.” A prime example of this strategy in motion is FlightHub, Momentum Ventures’ flagship brand. In evaluating its next business opportunity, Momentum Ventures chose to tackle the online travel industry due to its proven model and perpetually growing user-base. Since launching in 2012, FlightHub has grown to achieve over $1.5 billion in annual sales and now employs over 400 people worldwide.
Lastly, Momentum Ventures is very dedicated to building a strong, experienced, and dedicated team. While every business strives to have the best employees who are great fits for their positions, the people Momentum Ventures hires do more than just their traditional job. Momentum Ventures places a huge value on mentorship. With some employees having been here since the launch of Momentum Ventures in 2007, and many more with years of experience in the online space, many employees of Momentum Ventures have seen the rise of the online industry and are prepared to help business leaders navigate the waters of launching their assigned business using the expertise they have gathered over the last-almost decade. In addition, Momentum Ventures places a premium on finding employees who live and breathe success both professionally and personally, seeking winners who not only excel in the workplace, but also in their personal endeavours.
Momentum Ventures believes it has found a way to reinvent the venture capital industry by placing its bets on itself and its ability to analyze and outperform industry competition. Unlike traditional venture capital firms, Momentum Ventures has developed a track record for continuous success, doing their part to turn an industry famously known for risk into a safe harbour for timely innovation in the online space. Visit Momentum Ventures’ website to learn more about how they are pioneering a more certain future for business development and investment.