Alakris Group started as an IT company specializing in custom software development for clients from different spheres: from large corporations to startups and small businesses. In the process, we were able to identify the key characteristics of these customers and understand why startups most often fail to reach the launch stage.

Why aren’t startups launching?

Our experience shows that about 90% of startup projects never make it to the market. The reasons for this are different:

• Corporations always know exactly what they need and have the resources to implement it.
• Small businesses often don’t have big budgets but are looking to get a turnkey solution.
• Startups, on the other hand, face special challenges that prevent them from successfully launching a product.

Startup founders often commission outsourcing companies such as Alakris Group to create an MVP (minimum viable product), but lose focus or face resource constraints along the way. The main reasons for failure:

• The team’s lack of experience.
• Mistaken assumptions about the market and target audience.
• Lack of funding for further phases.

How we created an internal gas pedal

Having decided to look deeper into the reasons why startups fail, we developed a new strategy. During periods of low business activity (January-February), we started launching 1-2 startups per year with the founder’s funds, creating an internal gas pedal – an incubator for promising projects within the company.

We focused on startups in which we saw real potential, and helped them all the way from development to market launch. Over time, our portfolio grew to 10 startups, each of which received comprehensive support from our team.

Success during a pandemic

The COVID-19 pandemic was a challenge for many businesses, but for us it was an opportunity. One of the food delivery startups during this period gave an incredible result – a 20-fold return on investment. This inspired us to spin off our venture capital arm into a separate fund and continue to develop it.

Results and prospects

Creating an internal gas pedal turned out to be a successful decision: the investment paid off many times over thanks to a diversified portfolio of 10 projects. We realized that success in venture investments depends on broad diversification and willingness to take risks. Today, our goal is to build a portfolio of 100 startups, of which, according to our forecasts, 10 will be successful and generate profits.

Why it’s important for IT companies

For outsourced IT companies, creating an internal gas pedal is:

• Anew source of income: successful startups can become additional assets.
• Risk mitigation: spreading risks across multiple projects minimizes losses.
• Team development: experience in working with various projects enhances the skills of specialists.

Willingness to share experience

Over 10 years, we have built up a wide network of partners and contacts, which allows us to effectively develop new startups. As the fund manager, I am ready to provide mentoring support to IT companies that want to create their own corporate gas pedal. This will be especially useful for outsourcing companies that have the experience and resources to create successful products.

Conclusion: the creation of a corporate venture gas pedal is not just an opportunity for business diversification, but also a powerful tool for long-term growth. The experience of Alakris Group confirms that such a strategy can lead to success and strengthen the company’s position in the market. We are ready to share our experience and help our colleagues create their own venture ecosystems.