The studio model viewed by a professional investor from California.
This article published by John Denes, a Beverly Hills investor, provides a concise view on the startup studio.
John Denes defines the studio — or venture builder, as “ organizations that build companies using their own ideas and resources”. We concur.
The author outlines the differences between private equity funds, who act as “stock pickers”, and studios who build ventures.
Whereas incubators and accelerators typically run competitive programs and select the startups they wish to support, studios create their startups from within.
Technically, studios hold a major piece of each start-up equity. They mutualize their internal resources amongst startups. This lowers costs and allows faster growth.
Venture building is a rising movement in the startup industry, and is getting popular in the USA and abroad. New studios are emerging and gaining a reputation.