Why partner with a web3 venture studio on your next venture?
For years, aspiring entrepreneurs used different approaches to building new ideas utilizing principles from agile project management, lean manufacturing, and customer development, as summarized later in the book “The Lean Startup” which showcases a process of how to navigate in an environment of extreme uncertainty [1]. This model became a de facto standard in the startup industry, with many following the same path but with new knowledge and first-hand experience gained from past ventures.
Due to constant changes in business environments, business innovation models also needed to be aligned with this dynamic [2], ensuring that newly created ventures are resilient to any unpredicted event and are ready to pivot to a new model at any point in time if needed. Furthermore, it is a long-known fact that startups fail in large percentages due to premature scaling issues [3], and considering the current economic climate, entrepreneurs and companies need to adapt and start thinking about new sustainable ways of bringing innovation and new products to the markets.
Founders are now more than ever in a difficult situation that requires them to find the right co-founders, pitch their ideas to investors, build a solid team, secure funding, and do many other things in parallel. Besides that, many new founders get hung up with a lot of administrative work, like opening a company, working on tax and legal tasks, and many other things needed to successfully run a company, which is not ideal at the beginning of the entrepreneurship journey. Someone may even say that it is a daunting task for every aspiring entrepreneur who wants to focus first on the idea and then on growing the organization around the product or solution.
How can venture studios help?
In recent years, a new model emerged that is different from startup incubators, accelerators, or VCs and focuses on a more in-depth approach to building a startup and working with founders on a day-to-day basis. Popularly known as Venture Studios or Venture Builders, these companies try to solve the big overhead that early founders are getting stuck into by providing internal resources, expertise, and funding to help grow the idea from the early stages. In a nutshell, Venture Studios has a hands-on approach to venture building, helping founders throughout the process and working alongside them on day-to-day operations [4]. They can also help reduce the overhead and lower the risks of building new ventures by using previous experiences with a focus on discovering, building, measuring, and learning early on during the initial phases. Furthermore, by ensuring that the latest industry standards are applied to the whole process, startup studios can help uniformize the approach to venture building and improve the odds of the venture’s success while being a true co-founder of the founding team.
While still new as a concept, some reports show a higher success rate for ventures built by venture studios, with more and more founders becoming residents of one of these organizations or partnering with such studios to bring their ideas to life. Furthermore, there is a clear advantage to utilizing a studio for building a new venture, with many examples of both reduced risk and higher success rates in the long run [5].
If you need help building your next venture, contact us or find a venture studio near your location and start building on your idea!
Works Cited
[1]
E. Ries, The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses, New York: Crown Business, 2011.
[2]
F. Ricciardi, A. Zardini and C. Rossignoli, “Organizational dynamism and adaptive business model innovation: The triple paradox configuration,” Journal of Business Research, vol. 69, no. 11, 2016.
[3]
Startup Genome, “A Deep Dive Into The Anatomy Of Premature Scaling [New Infographic],” 10 2023. [Online]. Available: https://startupgenome.com/articles/a-deep-dive-into-the-anatomy-of-premature-scaling-new-infographic.
[4]
O. Netepenko, “How Startup Studios Can Help Founders Find Success,” Forbes, 2023. [Online]. Available: https://www.forbes.com/sites/forbesfinancecouncil/2023/02/21/how-startup-studios-can-help-founders-find-success/.
[5]
V. Rajendran, “The Secrets to Venture Studio Model Success,” 500 Global, 2022. [Online]. Available: https://500.co/theglobalvc/the-secrets-to-venture-studio-model-success.
