Startup Studio Basics

A startup studio, also referred to as a venture builder or startup factory, is basically a startup that attempts to build multiple startup in parallel.

PC: aszig

The Recipe:

1. Take a core team & entrepreneurs in residence;
2. Add a shared infrastructure & in-house funding;
3. Generate ideas internally;
4. Build multiple startups in parallel;
5. Trash what doesn’t work, reassign team;
6. What works spin off and get follow on funding;
7. Grow. Exit. Repeat.

The Promise / Potential:

•Faster start & lower build time;

•Ideal to boost underdeveloped ecosystems;

•If a startup fails, team is reassigned, they don’t scatter;

•Better terms for investors (more equity & control)

The Challenges / Concerns:

•Cap tables make follow on funding impossible;

•Startups within a studio have to fight for resources;

•Studios are copy-cats, only good for ecommerce;

•Less motivation, passion from founders & team.

Square One Labs is a startup studio based out of Lehi, Utah building software to power frictionless messaging experiences for businesses.

Our mission is to advance communications technology and improve customer experiences through the use of AI, natural language and programmatic mobile messaging. We’re improving the entrepreneurial process and providing a better way of giving talented people the opportunity to build something that adds value to the world.