A little over six months during the past year was the process of transforming the software company Bornfight from an agency business model to the so-called venture building model, where the company, thanks to its experience and knowledge, helps develop other companies (startups), and in return enters the ownership structure of the client company, which is not the case with the agency way of working. Recently, it presented its latest venture building project – the software platform Swen for managing camps, and before that Elevien, a platform for gymnastics competitions, and Tabu, for analyzing salaries in the Croatian IT sector.
In this regard, Tomislav Grubišić, co-founder and CEO of Bornfight, explained ‘venture building’ as a relatively new concept in our region, and revealed that such a change, which now involves relying on investments, has been very challenging. Another novelty is that all 90 employees of Bornfight will have the right to a share in the ownership of the company, which Grubišić considers imperative for hiring people in the IT sector given the significant labor shortage.
Can you describe how venture building works using a specific example of one of your platforms?
– The venture building model, which is often referred to as a venture studio or startup studio model, can be simply described as a process of systematically launching and developing new companies, startups – from the idea phase or some minimal product to market success. Venture building companies cover all aspects of company development and function as true co-founders, taking a certain percentage of ownership in the company.
At Bornfight, we work on startups that are entirely ours, but also on those we have founded with external co-founders – these are always people who are experts in the domain from which the startup originates. For example, our startup Elevien is a platform that enables the organization and participation in gymnastics competitions via mobile devices, and we co-founded it with gymnasts and judges who have years of experience. On the other hand, we are also working on the startup Tabu, which completely started with our people and from internal ideas.
For each startup we work on, we form a team consisting of production, design, development, and other necessary experts. We also invest and secure investments in our startups.
Which companies are co-owned on your platforms?
– Usually, the co-founders are private individuals, although they can also be companies. Our co-founders have strong domain knowledge and a deep understanding of the issues behind their business ideas – but they need a team and experience in developing digital products. Bornfight will assist them in that development with its technical and business expertise, years of experience in developing digital businesses and teams, and a strong partner network of investors. With product development and raising further investments in the ownership structure, additional private investors and other types of investors usually enter.
Some of your employees are entitled to a share in the ownership of the company. Have you managed to implement the ESOP program despite legal obstacles?
– The legal problem arises because there is no clear definition in the law on how to implement the ESOP program, although there is constant talk about improvement. In America, it works quite simply. Bornfight is currently implementing an ESOP program in which all employees can participate. Our employees have always had a strong sense of ownership due to the culture and values we nurture within our companies, and now we finally have a system that will allow all of them to truly become co-owners of the product/company in which they invest their knowledge and time.
