// What is a Venture Studio
How Venture Studios are Different
Do you have an innovative concept but haven’t yet figured out all the details? Or perhaps your startup is already gaining traction, and you need an injection of capital to jump into the next gear. In either case, you may be wondering if joining an incubator, accelerator, or venture studio is a strategic move for your startup.
For startups, the opportunity for growth is limitless. But even the best ideas need the right environment in which to develop and thrive.
Venture studios present a different approach to launching startups than incubators or accelerators. As a result, the system is gaining popularity and has recorded an estimated 625% growth in the startup market over the past seven years.
The goal of venture studios is to create a series of startups from the ground up, often in quick succession or by working on multiple projects simultaneously. They are companies that have their own funds, in-house experts, and resources to dedicate to building startups.
How Do Venture Studios Work?
Venture studios combine venture capital and company building. Instead of distributing resources to a wide range of startups that have a high probability of failure, as is the case for most incubators or accelerators, venture studios focus all their resources on developing a few highly promising startups.
They often source ideas internally and collaborate with serial entrepreneurs and well-positioned investors to rapidly develop startups that have a high chance of success in the market.
Higher Chance of Success
Venture studios only work on the ideas they believe will be successful.
A significant amount of planning and research goes into the selection process (Ideation), resulting in highly honed startups for market penetration. Additionally, these startups often receive much higher funding levels that give them longer runways and the ability to expand faster.
Able to Take on the Big Players
Venture studios are strategically positioned for horizontal integration. They already have established partnerships that provide the testing grounds for new products and the resources to take them to market. This allows startups developed in venture studios to scale much faster than startups from incubators or accelerators that must grow more organically.
Valuable Human Capital
Venture studios go beyond mentorship. Industry experts are not just available for advice; they are integrated into the team and often placed into leadership roles. Usually, the process is more like matchmaking between good ideas and experienced talent.
Once the startup is officially launched, team members may return to work on other new projects at the studio or continue to lead the startup into the next stage of development.
Comprehensive Development Process
If your startup is brought under the wing of a venture studio, then you can expect to receive extensive resources to test your ideas and go to market.
Incubators and accelerators will often provide access to funds and expertise, but it will be up to you to make the most of them. In contrast, venture studios focus all their resources on developing every aspect of a startup from the ground up.