Andrian Aniwer

1. How would you describe the business model used by VF? Why do you think VF changed
its business model?
VF offers a solution to one of the biggest challenges to early-stage tech startups for
business such finding the right expertise to build a testable product quickly and efficiently
with the least number of resources possible. By taking this approach, VF enables startups to
reach the market with a testable product available for customer then acquire feedback and
further repetition or performing again where necessary. VF started off with a fee-based
business model where the startup would pay a fee for the services provided by VF. However,
the model has evolved to offer subsidized engineering and design services to startups in
exchange for a percentage of equity in the product or the company itself. Through trial and
error, VF quickly learned that many startups could not afford to pay the fees for this service,
so they shift to an equity-based business model made more sense. In my view, I think the
reason why VF changed its business model was because customer can't afford their service
and they can't cover their cost. They used this equity-based business model to lower the risk
in financing option. In order for them to raise capital, they also look for an investor to
purchase the shares and wants a return of investment. In the part of investors, they make
gains by receiving dividends. In addition, this model is based on percentage of equity where
the company would help the business for startup or market their products then if that
business grows or generate profit. The company have part of income to that product or
business itself to pay for the cost expense in order for the company continuously operate.

2. Think about all VF stakeholders (employees, clients, customers of clients, and local
communities). How is VF providing value for these stakeholders?
Since, VF has grown to 50 staff members and worked with more than 30 startups on a
range of diverse products in health care, home care, financing, education, sports, agriculture,
beauty, and clothing, among others. VF provide value to its stakeholders by offering a solution
to one of the biggest challenges to early-stage tech startups such finding the right expertise to
build a testable product quickly and efficiently with the least number of resources possible
and find the right talent to help build and scale their products. Also, they provide engineering
teams design, develop and deliver excellent products at high speed and quality. In addition,
their investors have huge return of their shares in the form of dividends if the company
becomes profitable and successful in the future.
3. Do you think taking ownership in his client’s businesses will be valuable in the long run?
Explain your reasoning
In my own view, yes, taking ownership in their clients' businesses can be valuable in the
long run if it aligns with the interests of both parties and fosters a mutually beneficial
relationship. This approach can create stronger ties, promote collaboration, and incentivize the
service provider to contribute to the client's success. Apart from that, the company make it sure
being proactive, solution-oriented, acknowledge the issue, accountable, and committed to
continuous improvement and will generate more revenues and sales of their client’s business.
However, it involves risks and requires careful consideration of the terms and conditions to
ensure a fair and sustainable partnership.

REFERENCES:

Woll, M. (December, 2022). 5+ ways to establish taking ownership as a core value at

work. https://www.betterup.com/blog/taking-ownership