How We Work: The Design Phase

In our last article, we talked about the first phase of our approach to venture building - the Discovery Phase. In this article, we explain the second phase: the Design Phase. The Design Phase is where the fun begins for us. Building on the work done in the Discovery Phase, this is when the skeleton of potential ventures starts taking shape. Where we can truly roll up our sleeves and get our hands dirty. In the 12 weeks of the Design Phase, we prepare the venture for launch. The key outcome of this phase is a fundable venture with validated problem statements and solutions.

In the design phase, we discover, prototype, and validate solutions while forming the founding team. Based on the outcomes of the discovery phase, we validate problem statements through a mix of primary research (interviews with potential customers, subject matter experts, regulators, and industry leaders) and secondary research. This then quickly guides our pilot design - based on all the research done, we design a paid pilot to validate the problem statements and solutions that we have identified. The pilot, which includes a workable MVP, also allows us to get direct feedback from the market.

During the Design Phase, we also flesh out the commercial details of the venture. Based on the venture, we build a business plan that tackles the business model, go-to-market strategy, competitor analysis, and risk mitigation and management. A complete pitch deck and financial model are also prepared for each startup.

The general structure of the team working on the venture is a Venture Lead, supported by 2 Venture Architects and 2 Wright Partners. The Venture Lead is someone who is expected to be the founder of the venture post-Design Phase. Together with the Venture Architects, the Venture Lead runs all day-to-day analysis, pilots, and research. The Wright Partners provide guidance on the business model, product design, technology, mentorship, and all other necessary aspects on a daily basis with each standup and problem-solving.

Over the period of the Design Phase, we have regularly scheduled check-ins with the corporate partner to update them on the progress and get their feedback and thoughts. These “venture boards” occur on a frequency decided with the corporate partner.

For example, one venture we built in partnership with a leading telco was a consumer credit solution. Within 4 weeks from the start of the design phase, we built a fully-functional mobile app (see mock-up below) that allowed our pilot customers to access credit right from their phones and spend it as they saw fit. We could track spending and collect repayments from our customers. The app was built within two weeks and we ran the pilot for two months to understand customer behaviour and get their feedback.

In summary, the Design Phase involves all aspects of getting the venture ready for becoming a full-fledged investable venture. We discover and validate problem statements, run high-fidelity pilots to get feedback, build out the business case, set up the initial founding team, and complete initial LOIs/MOUs with partners for the venture. With our corporate partners, we align on valuation and investment goals, create and refine the initial budget, and agree on the product roadmap.

Stay tuned for our next post where we explain the final phase of our venture building process, the Build Phase. If our approach to and the outcomes of our Design Phase intrigue you, drop us a note to learn more. We would love to understand how we can help you build your corporate venture!