Better understand it by a comparison
Parameters
Venture Capital (VC)
Startup Factory (SF)
Resources
Direct cash injection
Resources, cash, infrastructure
Initial Idea
From Entrepreneurs
Jointly or solely initiated by SF
Development
Entrepreneur's initiative
Jointly or entirely done by SF
Operation
Entrepreneur and his team
SF's team is deeply involved
Team
Entrepreneur and his team
Talent in-house / in network
Equity/Risk
VC takes less
SF takes more
If startup fails
Team is dismissed / Sunk cost
SF keeps the talent
Based on a post by Wei Li