Venture Studios are the new hype, similar to accelerators a couple of years ago. They are popping up everywhere and many service providers also want to have a slice of the pie. Working on exciting new projects and benefiting from the financial upside sounds like a dream project to many agency owners. But how can it be done in a professional and lean way?
A Venture Studio is a legal entity that provides many services and acts as an institutional co-founder with the goal to create or support a startup. The startup is usually an external entity and managed independently, as opposed to a Venture Builder that has more control and plans to create a new business unit or a spin-off. The terms are often used interchangeably but according to Onetti there are some differences (2021, sifted.eu).
A famous example includes the Dollar Shave Club, which was created with Science Inc. and only 5 years later got acquired by Unilever for $ 1 billion. The example of Snowflake also shows the enormous upside potential. At their IPO, the Venture Studio Sutter Hill Ventures held shares worth roughly $ 12 billion. Statistics state that Venture Studios perform better than traditional venture capitalists.
As a service provider, you are specialized in certain fields, like customer validation, MVP development, go-to-market strategies or performance marketing. You have done this many times and streamlined processes, which allows you to execute fast. This provides a clear advantage to the startups. But there are also a couple of challenges you need to consider when setting up a venture studio. How do you qualify good startups if you don’t have a team to develop and validate business ideas? Can you help startups with additional services, like HR or fundraising? What is your investor profile and how do you structure the deals?
With our Venture Studio as a Service platform, you can get access to startups, a support network and a business model that enables you to invest in startups. When startups come to us, at first, we identify their needs based on the KAPSLY Matrix. Every startup and founder is unique and we can only have maximum impact by connecting them to the best match. Hence all projects are qualified, and founders are educated about the service-for-equity model, which reduces onboarding time for you. If your startups need additional services, there are many top-quality service agencies in all sorts of fields, ready to support startups, e.g. with UI/UX, product development, marketing, legal or fundraising. Additionally, we provide a platform where you can track all your contributions and manage the startup portfolio that you will create over time. As a strong partner with aligned interests, we will make sure the startups really get what they need and go on to generate revenue, fundraise and finally return your investment.
If you come on board as a new service provider, we will go through a couple of questions to define your startup offering and business model. Learn more about our Venture Studio as a Service offering here.