From idea to company: Behind Favcy’s startup building factory

Favcy: India's Homegrown Venture Builder

Favcy is a venture builder or venture building platform in India.
It identifies, develops, launches, and scales startups by providing a mix of services and capital in exchange for equity.
The platform supports startups from idea validation to post-product revenues and investments.
After an average "venture building" period of 15 months, Favcy allows the startups to raise subsequent capital rounds independently.
Founded in 2015 by Pranav Chaturvedi, Nischaiy Pradhan, and Harshit Joshi.
Favcy is home to 26 startups and manages an active Asset Under Management (AUM) of about Rs 50 crore.
The concept of venture building is gaining traction in the West and Favcy aims to bring it to India.

Evaluation and selection stage involves founders undergoing an in-house development course and their business idea/product being verified and validated.
Favcy's proprietary "Idea Validator tool" called DREK scans the market for differentiation and relevance of a particular idea.
Founders are offered a term sheet and formally onboarded.
Handholding process includes idea validation, business modeling, product assembly, and team building.
Favcy provides office space, support resources, and helps with the transition when the startup leaves the nest.
Favcy claims 15% equity in the startup at the beginning and liquidates a part of it as angel investment comes in.
Favcy has its own investment network called 1st Cheque and partnerships with independent funds.
Favcy started as an assembly line and shared tech platform before launching as a full-fledged venture building platform in 2019.

Incubators provide mentoring, recommendations, shared resources, and network without capital or execution.
Accelerators work with more mature startups and invest a small amount in exchange for equity.
Startup studios operate similar to venture builders and provide support with a capital-driven model.
Venture builders (VBs) take a hands-on approach and provide extensive support to startups while taking a higher amount of equity.
Examples of VBs include Rocket Internet, Growth Story, Ant Farm, and Smile Group.