Venture Studio: A Trusted Shelter for Budding Entrepreneurs & Startups
The Concept of Venture Studio:
Venture Studios are the ultimate destination of young entrepreneurs who supports the innovative ideas through initial funding. It works as an organization which uplift several startups at the same time, so that if any one or two of them under perform, others can fetch them desired return on their investment. It is quite similar to the concept of incubators or accelerator but in this case, they only focus on any one company or startup at a time, while the venture studios nurture multiple new ventures simultaneously at the same time.
Venture studios have a higher success rate with a 34 percent exit rate which is nearly 2x than that of other accelerators (19 percent) and multiple times higher than the startups. Venture studios are constituted with a team of expert business owners and successful entrepreneurs, and investors who supports the new startups with all their expertise, knowledge and funding, just like a parent, who feeds, nurtures, gives education and helps us to become a successful human being in future. This concept has propelled in last 10-15 years so vibrantly, because it stretches its hands of companionship, leveraging their resources and expertise to multiple entities and house them under one roof.
Significance of Venture Studios for Startups:
Venture studios are that trusted and helpful roof which supports the aspiring young minds to explore and explode like a dazzling volcano
• Venture studios help the entrepreneurs with funding at every stage of their life and guide them with their valuable piece of advices.
• By pushing multiple innovative ideas and concepts, these studios are improving the startup ecosystem and helping in up-scaling the GDP growth of the country.
• Venture studio get connected to a startup all through the stages and offers a wider range of services beyond the typical funding and mentorship but provide insights from concept development to scale, taking on different tasks, including product development, validation, marketing, fundraising, and talent acquisition.
• They help the founders and entrepreneurs with data driven analysis and suggest them, what is to apply, build or kill to survive and stay alive in the market. Their system revolves around training, mentoring and networking, culminating in a demo day to gain potential investors.
• After investing the new founders, they also tend to recruit expert and experienced entrepreneurs to guide the budding ones to achieve traction in their trajectory.
• These studios calculate the size of the target market, assessing venture capitalist interest and recent deals and they seek input from independent experts.
• These studios help to expedite the process and reach the Proof of Concept (POC) or Minimum Viable Product (MVP) stages as quickly as possible.
• For the investors, it is quite profitable as it reduces the risk of loss, as it simultaneously provides funding to multiple startups, if one of them fails to survive the other one will continue to stay afloat in the market.
• Venture studios generally don’t work with existing startups, but they give birth to new startups in the house from scratch and help them to become unicorn from grass-root level.
Demand of Venture Studio in Today’s Market:
• The inhouse startups of venture studios have 50 percent more success rate than conventional startups.
• 84 percent of the startups are coming out of studios and going on to raise a seed round funding, and 72 percent of them successfully pass on to the next level of funding that is series A.
• An international study on startups showed that 90 percent of the self-funded startup companies fail, while 25-30 percent of the venture capitalist funded company fails and only 9 percent associated with venture studios tend to fail.
• 80 percent of studios are now switching to a hybrid business model, which helps them to expand their reach and create more impact as they work together with other entrepreneurs.
After taking everything into account, it can be said that, having a brilliant idea is not enough, because execution is the pivotal part of any business. Venture studios have their expert technical team who discuss about the market, ways of fundraising, technical know-how of production and distribution, research and development in a cost effective and time saving manner. Venture studios are the ones who are revamping and reshaping the economy of India and helping it to ride few ranks more in the Ease of doing Business index, in which India was ranked 14th in the period of 2018-22 but recently it went up to 10th rank for the period 2023-27and put a golden feather in the hat of success. If this continues for longer time, it can remove and demolish the concept of ‘brain drain’ from our country forever.