First of all, building something from scratch is the most rewarding experience filled with learning every day if you are at least 10% entrepreneurial in your nature. In studios, one will hardly be bored. Thanks to the recent research, studios turned out to be more successful too. So if it is your goal to work with or build a unicorn, you are 5x times more likely to get to work with one in the studio setting.
The vast majority of individuals I am personally speaking with are a little more alert when considering early-stage ventures due to the perceived higher risk. To address this concern, I’d like to bring forward the factual evidence that in venture studios you are subjected to less risk and a higher success rate of the startups that are coming out of the studio (see the table below). Understand me correctly – not every startup from a studio will be a grand success, some won’t come through to Series A, others to Series B, some will be profitable self-sustained ventures and won’t chase the VC funding, in the same way, that not every growth-stage and the mature company is going to secure it’s position on top of stability and growth (think of the recent layoffs in Hopin and Glossier as an example). Therefore, I would invite you to concentrate on vetting opportunities based, not on the stage of investment or PMF, but on the problem-market fit proposition, team dynamics, and the mission of the product. Some teams go through seed to Series A in a few months, yet at that time the opportunities you were looking for may not be there. On top of that, consider that in studios often the individuals who worked on venture X, shall it not work out, can move to venture Y and build upon the knowledge acquired further. This is truly a win-win for a studio and for the talent within. Studios also welcome internal and external ideas they can work on, so one can migrate from Venture Lead or a CPO to Founder in time.
Remove your stage fright for early stage startups.
Are you missing the moment?
VSaaS as a model is picking up in traction from all sides – Angels, VCs, and FOs are increasing their investments into the studios across the globe. Top investors like Sequoia, Softbank, Index Ventures, Foundry Group, Menlo, and others are already including studios into their portfolios to get access to a quality deal flow early on. Whereas it is no surprise to see private Angel investors and Angel networks involved, we often forget about the mutual benefit that these two bring to each other – knowledge and personal connections. This together with smart capital can place the studio on a rocketship 🚀 quicker than VC raises its first fund. Studios offer great operational efficiencies between the member startups, founders, and their own network, and also have proven processes tailored for early-stage, building security and lowering the risk factor.
Wherever you are in Europe or the US, you are likely to know the names of Aircall, HelloFresh, Moderna, and Clubhouse. What unites them? They all came from the studios.
Let us focus our attention on the data from GSSN report confirming faster exits, reduced losses, and higher liquidity.