In the past few years, a number of firms have moved into venture capital investing and growing their own internal ventures. These efforts have met with mixed results. One of the reasons for failure is the difficulty of growing a new organization from scratch. These start‐up ventures must pass through a number of stages in building this new organization. Problems are encountered because managers do not think stagewise. In working with these managers, a model was developed to describe the stages through which high‐technology ventures will progress. These stages can be used in guiding organizing decisions for each stage.