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A startup studio, also known as a “venture builder” or “startup factory,” is a company that specializes in the creation and development of new businesses. Unlike traditional venture capital firms that primarily focus on funding startups, a startup studio takes a more hands-on approach by actively participating in the conception, building, and launching of new companies. 

In a startup studio, a multidisciplinary team of professionals, including entrepreneurs, developers, designers, marketing experts, among others, collaborates to identify startup ideas, validate their viability, and shepherd them from the early stages to launch and beyond. The studio provides shared resources, operational support, and strategic guidance to the startups it incubates. 

The core idea is to create a structured environment conductive to innovation and startup creation, leveraging shared expertise and resources to enhance the chances of success for emerging projects. While each startup studio may have a specific focus in terms of industries or technologies (such as Finnovaction, which specializes in creating fintech startups), they all share the fundamental characteristic of being active facilitators in the process of creating and growing new businesses. 

Advantages of a startup studio 

According to the Big Startup Studios Research 2023 conducted by entrepreneur Max Pog, in the five years between 2018 and 2023, the number of startup studios has doubled to 877. This happens because startup studios offer several advantages compared to traditionally created startups, not only for entrepreneurs, but also for investors.

For entrepreneurs 

  • Shared resources: Startups in a studio environment can benefit from shared resources such as office space, administrative support, and access to a network of experts. 
  • Methodology: Compared to first-timer startups, venture builders have a structured methodology that will minimize mistakes and inefficiency in building the foundation of the startup, and that will cut startups that are unlikely to be profitable in the early stages of the process, significantly reducing the cost of failure.  
  • Expertise: The studio model typically involves a team with diverse skills and experience, including product development, marketing, finance, and more. This collective expertise can enable and accelerate the growth of startups. 
  • Risk mitigation: The studio shares the risks with the startups it supports. This can be especially valuable for entrepreneurs who may not have the financial resources to handle all the challenges of starting a business independently. 
  • Faster time to market: Startups within a studio can move quickly from ideation to product launch, reducing the time it takes to bring a product or service to market. 
  • Learning from failures: as the studio works on multiple projects, there’s a collective learning process. Lessons from one project’s successes or failures can be applied to others, creating a culture of continuous improvement. 
  • Access to funding: Startup studios often have connections with investors and can help startups secure funding more efficiently than if they were working alone. 
  • Network and mentorship: Entrepreneurs within a startup studio have access to a broader network of contacts, mentors, and advisors, providing valuable guidance and support. 
  • Focus on innovation: The collaborative environment of a startup studio encourages creativity and innovation. Teams can bounce ideas off each other, leading to more unique and groundbreaking solutions.

Overall, the startup studio model is designed to increase the likelihood of a startup’s success by providing a supportive ecosystem that addresses various challenges associated with launching and scaling a new venture. 

If you are an entrepreneur or aspire to be one, contact us. At Finnovaction we are constantly looking for new talents to help us develop brilliant ideas.

For investors 

  • Diversification of portfolio: By investing in a startup studio, investors gain exposure to multiple startups across different stages and sectors. This diversification helps mitigate risk and increases the chances of positive returns. 
  • Access to exclusive opportunities: Investors in a startup studio can access exclusive investment opportunities originating within the studio itself. This gives them a chance to invest in promising projects before they become available in the open market. 
  • Lower individual risk: Participating in a portfolio of startups backed by the studio allows investors to spread the risk associated with investing in a single company. The collective approach helps balance potential losses with expected successes. 
  • Expertise of studio team: Startup studio teams consist of professionals with experience in launching and developing businesses. Investors benefit from the expertise and knowledge of the studio’s management team when assessing investment opportunities. 
  • Ongoing support: Investors receive regular reports and updates on the progress of the startups they’ve invested in. Additionally, the startup studio team provides ongoing support to the emerging companies, potentially enhancing long-term success prospects. 
  • Networking opportunities: Being part of a startup studio provides access to an extensive network of contacts and collaboration opportunities among the various startups backed by the studio. This can lead to synergies and additional business opportunities. 
  • Participation in early stages: By investing in a startup studio, investors can participate in the early stages of startups’ life cycles. This early involvement can potentially result in more significant returns compared to investments made in later stages. 

In summary, joining a startup studio as an investor can offer diversification, access to exclusive opportunities, risk mitigation, and the benefits of ongoing support and expertise from the studio team. 

If you are interested in investing in fintech or have experience in the sector, get in touch with us. We would be pleased to tell you all about our projects.