Our journey in the World of Startup Studio continues. Today we’re talking about the types of Startup Studios.
In the last articles, we have provided an overview of naming and history from the beginning to the present. Let’s go deeper and deeper together.
In this article, you’ll find an outline of the different Studio models. Yes, you got it right.
The business model is always the same, but you will find different types of Startup Studio with various features.
We will guide you through these; if you missed the previous articles, you could find them here:
Let’s get started!
As mentioned before, the business model is always the same, but Startup Studios do not all work in the same way.
Different approaches to startup building have emerged. The choice of one type over the other depends on certain factors, such as the market, industry in which the Studio is developing, the founder strategy, the available business opportunities, etc.
The types of Startup Studios
Operator Model is also called Venture-Builder, Company Builder or more commonly Startup Studio.
Successful serial entrepreneurs found Venture-Builders. They build startups from scratch based on market and trend analysis.
The Studio provides resources and supports financially to the newly created startup through the ideation and validation process. It also provides the initial salary for resources that work on the project.
The Studio’s first investment in the startup is around 250k dollars and works as a bridge to a Seed Round.
Here some examples of Studios adopting this model: Idealab, Science Inc, Human Ventures, and Mamazen.
This model allows the firm to generate cash through agency activity. It is a trustworthy agency that uses revenue from this activity to fund in-house idea development and startup creation.
Agency work provides a unique perspective on market trends and unmet needs. These types of Builders have developed deep experience in marketing and software development.
Some examples of Agency Models are Laicos, Rainmaking, Etventure.
Other types of Startup Studios.
The Corporate Model is also named Corporate Venture Builder and also known as Corporate Startup Studio.
Corporations usually have huge dimensions and big capitals. These two characteristics are often an obstacle for innovation, which is often inhibited by the fear of change.
Corporate Venture Builders have found a solution to the problem; the innovation process is outsourced to a Studio that manages it within the company’s scope and goals.
Usually, these Studios are funded by a corporation that they support for innovation activity.
It also provides the Studio with powerful tools, such as know-how, distribution channels, IP, etc.
This model is getting popular because it allows corporations to benefit from the Studios’ innovation process without disrupting their structure.
Stryber and Aimforthemoon are two examples of Studios using this model.
Technology Transfer Model
These Studios work closely with universities and research departments.
They commercialize innovative projects generated by university research institutes building companies that are launched on the market.
In the Technology Transfer Model, research companies move the research activities results to industry, converting them into a spin-off.
Examples of Technology Transfer Model: Fraunhofer Venture, Max-Planck Innovation, UCLA Anderson Venture Accelerator, and Fed Tech.
Investor Model Studios or Venture Studios are usually created by a group of investors, they invest in startups (already in place) according to predefined metrics. They provide them not just funding but also resources and services to support their growth through expertise and other resources.
This type of Studio is typically attached to a larger Venture Capital firm that provides funding for operating costs and works as a source of capital for the portfolio companies.
FJ Labs adopted this model.
Which will be the next step?
Our journey is not over yet.
The next article will talk about the difference between Incubator, Accelerator, and Startup Studio.