The number of new startups in the world is rapidly increasing . Nearly everyday, new startups are new startups in the world is, but nature of the industry is that, the great majority of them never see the light of day. Because of a few foreseeable factors, such as an inability to articulate the ideal aim, poor access to funding, failure to form the right team, and a struggle to meet deadlines, means that a large number of viable ideas get pushed out of the startup ecosystem. It takes something remarkable to be one of the successful few. The question now is: what is the solution to all of the aforementioned obstacles that a startup may face? The answer would be a combination of resources, expertise, and factors to mitigate failure. And that answer has led to a development of a new model: “Startup Studios.”

In an ever-changing global market, those with the correct understanding of nuances are better suited to establish nascent organizations that are ready for long-term success. 

What specifically is a Start-up Studio ?

A startup studio is an organisation that builds several companies in succession and boosts a startup’s chances of success and growth by providing infrastructure and resources.

A Startup Studio, as opposed to an Incubator or Accelerator, is an organization that focuses on establishing new companies from the ground up, leveraging its staff and resources, and supporting that company for as long as it shows to be a sustainable business or is ready to stand on its own legs.

Instead of providing meagre resources and devoting little effort to the development of a business, as an Incubator does, or having an intense and quick affair with lasting financial consequences (potentially good or bad), as an Accelerator does, the Startup Studio model covers it all, backed by a team that launches companies for a living rather than advises for a living. A Studio also carries more risk than an Incubator or Accelerator because it devotes significantly more time and resources to each startup. In exchange, the Studio model preserves the highest equity of any of them.

Brief History of Startup Studios

While startup studios have grown in prominence in recent years, they are not a new concept. Bill Gross’ IdeaLab, one of the first and most successful startup studios, really predated the rise of business accelerators. Since 1996, they have been testing concepts and spinning successful initiatives in the companies using their studio approach, with great success to show for their efforts. 

As of now, there are just over 560 startup studios globally of which almost 50% have been created in the last 7 years.

Features of a Startup Studio

• Startup Studios typically deal with startups from inception through exit.
• For them, launching a startup is a repeating process. They create several prototypes, business concepts, products, and companies at the same time or in rapid succession.
• Startup studios gradually build up their internal infrastructure. They have management know-how, data, technical tools, expert resources, and organisational tactics shaped by their previous experiences, and they are constantly expanding this infrastructure so as to offer the best solutions to the ventures they develop.

How do Startup Studios work ?

At the centre of every Startup studio is a process that typically consists of following stages :

Stage 1 : Investigation or Ideation

This procedure includes gathering ideas, determining whether they are viable, and gradually developing them into a tangible business case. This stage focuses on defining the idea’s value proposition. By the end of this stage, the team should have a clear idea of how to build this idea into a product or service, and how to persuade potential customers that the service/product is superior to what is currently provided.                            

Stage 2 : Testing and Validation

It’s time to put these ideas to the test after defining the value proposition and early adopter categories. This stage focuses on developing prototypes , which must be tested by potential users and customers, in the market, and confirmed with supporting evidence in order to determine the sustainability of the business idea.

Stage 3 : Development

The Studio’s goal is to turn the validated idea into a product that can be released into the market, as soon as possible, to retain the competitive advantage. The first version of the product, a Minimum Viable Product (or MVP) is designed to meet all of the requirements identified and specified in prior stages, providing as “real-world proof” of the more abstract stages that precede it. MVPs are designed, built, and launched, allowing users and customers to experience the product and is used as a test for partners and customers to understand long-term viability and scale. Feedback loops are a big part of this stage to continually improve the product.

Stage 4 : Portfolio 

The venture is considered successful if there is traction in the market and a consistent improvement in the key metrics and indicators set by the Studio.. The startup is then added to the current portfolio, and the Studio team  then works with developing the new venture’s growth strategy.

Stage 5 : Scale then Exit

The venture is concentrating its efforts at this stage on scaling up, investigating new market prospects, developing its team and scope, and creating new products. This is the last step before a successful exit

Conclusion

Regardless of their business strategy, startup studios are at the vanguard of the entrepreneurial revolution. Studios anticipate the difficulties that every business faces and form teams to not only support the company’s objective, but also to empower founders through mentorship and educational resources.

In a quickly evolving digitally-driven economy, passionate, inventive, and purpose-driven businesses will succeed. Having said that, it looks that studios will be in command.