Venture Studios: Analyzing a New Asset in the Venture Ecosystem

Abstract

One of the latest evolutions in the entrepreneurial ecosystem is the rise of the “venture studio” model. The venture studio model aims to systematically build new ventures by trying to combine the financial resources of a venture capital firm, the expertise of accelerators and incubators, and the drive of startup founders. Acting as “factories that build businesses,” venture studios are companies that apply venture building methodologies to systematically identify market opportunities, develop ideas for businesses that can pursue those opportunities, assemble founding teams to operate those businesses independently, and support the businesses’ growth from inception to spin-off.

This research aims to provide an understanding of the venture studio model and how it differs from other methods of creating and supporting new ventures. The research explores the characteristics of venture studios and their structures, the details of the venture building models employed, and the model’s advantages and challenges from the point of view of venture investors. Finally, this research attempts to envision what lies ahead for the venture studio model and what impact it could have on the larger entrepreneurial ecosystem.