Member-only story
Startup Studios- Evolution Over Time
In my research of Startup Studios, I am beginning to look at the major players within the Startup Studio ecosystem. Previously, I broke down the key elements of the Startup Studio business model (which you can read about here). In this article, I have evaluated the differences between major Startup Studios as they’ve progressed over time.
Let’s first refresh on the key elements of the Startup Studio business model:
If you’re unfamiliar with Startup Studios, they’re an entity that exists to create multiple startups either one right after the other or in parallel. They typically use one core internal team to ideate and grow the startup through launch and once it gains traction they hire a CEO and let the startup loose.
On some occasions, a core team will take outside ideas and let other entrepreneurs collaborate with them but in other cases the level of outside idea sourcing is minimal. Of course, for all this effort the Studio keeps the majority of the equity in the Startup and the rest goes to the new founding team.
Startup Studios (which are also called venture builders) always fund the initial testing and pre-launch phase of the startup…
