FROM IDEA TO EXECUTION
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Startup Studio Resources
A reflection on two years working at High Alpha I’m coming up on my two year anniversary at High Alpha, a…
And why we think it’s going to work Traditionally, venture capital’s purpose has been to simply assign capital to a business…
In the world of entrepreneurship and growing new business, success doesn’t just happen overnight — there is usually a long process before things start firing on all cylinders. Usually, these professionals work with other experts or other businesses to help them learn the ropes and build something great.
But with this type of service in high demand over the years, there are now many businesses who solely focus on bringing these entrepreneurs or startup companies to the next level. These companies are trained and experienced on what makes a great company and the steps needed to build a new business from the ground up. These businesses who lend a helping hand are called startup studios.
What is a Startup Studio?
A startup studio, which is also sometimes referred to as a startup factory, startup foundry, or a venture studio, is a company that focuses on building success for a business. Especially in the initial development phase, these companies are solely focused on helping these businesses build and reach their goals. This method of business building is sometimes called “parallel entrepreneurship.”
Types of Startup Studio Models
When it comes to startup studios, these businesses will typically operate with a startup studio model. Depending on the services offered by the company, they will use a certain startup studio business model that will determine the types of clients they work with. Take a look at the different models out there:
Builder studios are focused on developing businesses from the early stages of formation. Another aspect of this model is that it typically involves building a business from internal ideas.
When learning how to start a venture builder, one approach is to use the investor model. This approach focuses on bringing in early-stage external startups, then providing them with funds and expertise in order to grow. As businesses need the right amount of funding — and usually a lot of it — finding investors to build a business is key.
Incubator studios are also called accelerators, and these work to get startup studio equity as an exchange for providing expertise and funding.
What’s the Hype Around Startup Studios?
With the growth in venture studios and many businesses claiming they are very beneficial, why are they so attractive to entrepreneurs?
Given that these startup studios come equipped with industry professionals and those who have been in the shoes of entrepreneurs, you’re able to grow faster and more efficiently.
While there may be some trial and error when it comes to some aspects of your business, another benefit of using a startup studio is that you’re in good hands. These professionals use trusted processes that have worked for similar companies just like yours. So, chances are, they might work for yours too.
Perfect for Scale
There is a good chance that the startup studio you’re working with has worked with some companies that made it big. On the other hand, maybe the venture studio has worked with large companies before. Whatever the case may be, venture studios can usually help you build something great — and something big.
If you want to learn more insights about the different models, then be sure to do a startup studio online search, and be sure to also look up the book titled Startup Studio Playbook.
Startup Studio Alternatives
When it comes to building startups, entrepreneurs have more options than just utilizing a venture studio. Take a look at the different options out there, including their pros and cons:
Startup Studio vs. Incubator
A startup incubator is a company that helps startups by offering training and providing guidance on the startup process. Incubator businesses are typically focused on the early stages of startup formation, so their services are usually focused on getting over the challenges during the initial formation phase.
Venture Studio vs Accelerator
Another option for entrepreneurs is to use a startup accelerator. These are fixed-term, cohort-based programs that involve seed investment, sales, mentorship, connections, and educational components. Another aspect of this method involves a pitch event or demo day that is used to accelerate growth for the startup. Most of these businesses are privately funded, which typically works as an investment fund.
How to Choose
Feeling confused about the startup foundry topic? Not sure which one works for your situation? While choosing the right business can be a struggle, it is a vital step in your business journey. When it comes to venture studio vs incubator and venture studio vs accelerator, it really depends on your needs and how far along you are in your journey.
Do you need a lot of investing? Are you at the very early stages of your formation? Do you have a large team, or is it just you? These are the questions you need to be asking yourself to determine the best approach to take. If you take the accelerator studio approach, then you’ll more than likely have to pitch your idea to investors. If that doesn’t sound like a process that is right for you, then the best approach might be to choose a startup incubator studio.
Startup Studio Network
To give you a better understanding of startup studios, we’ll dive into some of the key players in the startup studio world. We’ll talk about some history surrounding the topic and include some key names that have brought venture studios to where they are today.
Startup Studio History
To learn about the history of startup studios, we travel back to 1996. During that year, Bill Gross founded the company Idealab. Bill was one of the first people to talk about the ‘incubator industry.’ The focus of the company was to test many different types of ideas at once, then take the most successful ones and turn them into companies. The company was also known for attracting the human and financial capital needed to bring these new companies to the market.
However, the startup studio trend really didn’t gain traction until 2008. Since then, these startup studios have really grown. Today, there are more than 70 startup studios around the globe and over 20 of them have been built since 2013.
As startup studios have really grown over recent years, we’ll now talk about some of the more notable companies that exist today:
Ideo Colab Ventures
Ideo Colab startup studio is a business who invests in early-stage web startups to give them the support they need to grow. The Ideo startup studio also works with these businesses to co-create with them in order to develop innovative products. To learn more about Ideo Colab ventures, check out the Ideo Colab website, and also research the Ideo blockchain fund and Ideo crypto.
High Alpha Venture Studio
High Alpha is a venture studio that is changing the world of entrepreneurship. High Alpha is unique because they focus on company building with venture funding in order to create an efficient process. Since they were founded in 2015, the studio has created 17 new companies.
Some other notable companies that have made a serious impact include:
- Human Ventures
- Atomic Startup Studio
- SK Startup Studio
- Entrepreneur First
- Startup Studio Evan Luthra
- Rocket Startup Studio
For more insights and resources for startups, be sure to look into the Global Startup Studio Network.
Global Startup Studios
While startup studios have grown in popularity throughout the United States, they are also gaining traction around the globe. Whether you’re looking for a startup studio Orlando or a startup studio in India, these studios are starting to pop up everywhere. Take a look at the following list to see some of the more notable studios all across the globe:
New York Studios
If you’re looking for a startup studio NYC solution, then you have many options. Take a look at this list of New York studios:
- Alley Corp
- Human Ventures
- Innovation Dept
- Venture Lab
- Interplay Ventures
Midwest Startup Studios
While New York is a major player when it comes to venture studios, the midwest is also gaining traction for being a hot spot for these companies. In fact, startup studio Chicago and startup studio in Indianapolis are some very common internet searches today. Here are the more notable startup studios located in the midwest:
- High Alpha
- Aspire Ventures
- Rev1 Ventures
International Startup Studios
While the United States has a strong grasp on the number of venture studios on the market, other countries aren’t too far behind. From a startup studio London to startup studios in India, here are some of the venture studios located around the globe:
- Agave Lab Ventures
- Far Ventures
- Ideation Kings
Types of Startup Studios
A huge reason why many startup companies choose these studios is that they operate in many different industries. Take a look at some of the various industries where utilizing a startup studio is common:
Healthcare Startup Studio
With healthcare always being a strong focus in our world, there are many different types of software and technology that is being developed to offer help in this industry. That being said, utilizing a healthcare venture studio is the perfect solution for those working in this field.
Information Technology Startup Studio
Since many of these startups are involved with tech and software, information technology is an industry where startup studios can offer great assistance. Technology is constantly changing and new advancements are coming forth, so this industry is especially popular when it comes to venture studios.
eCommerce Startup Studio
As eCommerce is another industry that is constantly growing, startup studios are heavily used when building eCommerce startups. These companies develop innovate ideas and ways to stay ahead of the competition; therefore, these startups will frequently seek help from expert startup studios.