How Startup Studios Differ From Venture Studios

Startup studios and venture studios are two terms that are often used interchangeably but actually have quite a few key differences that could have an impact on the company deciding who to work with. 

Whether the idea is to build a new app, augment the company’s staff or want to add expertise in machine learning, deciding which studio approach to go with is key to an organization’s ability to launch its solution.

So which one is a better option? What are the differences and what can work best for an organization looking to launch a new solution?

We explain more below.

The Venture Studio Model

A venture studio is a business model in which an organization creates and manages multiple companies or app solutions simultaneously. These solutions are typically focused on creating new products, services, or platforms that solve specific problems or address unmet needs in the current market.

The venture studio model helps organizations launch new solutions in several ways. First, venture studios typically provide shared resources to their portfolio companies, including access to experienced mentors, legal and accounting services, marketing and branding expertise, and more.

This helps companies to reduce costs and increase efficiency, as they can leverage the resources and expertise of the venture studio.

Next, there is the incredible benefit of accelerated product development: Venture studios have a dedicated team of experts who can help companies rapidly develop and test their products or services. This enables companies to bring their solutions to market faster, which can be a critical advantage in competitive markets.

Then there is the way that venture studios are able to manage risk. By creating and managing multiple companies simultaneously, venture studios can diversify their portfolio and spread their risk. This can be beneficial for both the venture studio and the portfolio companies, as it reduces the likelihood of a single failure bringing down the entire organization.

In short, the venture studio model can be an effective way for organizations to launch new solutions and create a diversified portfolio of company solutions. By providing shared resources, accelerating product development, and providing access to expert resources, venture studios can help portfolio companies to succeed and grow, while also benefiting the venture studio itself.

The Startup Studio Model

Now, onto the startup studio model and how it differs from the venture studio model.

The startup studio model and the venture studio model are similar in that they both can involve creating and launching multiple startup companies. However, there are some key differences between the two models.

To start with, in the startup studio model the founding team of each startup is typically composed of experienced entrepreneurs or industry experts who are brought in to develop and launch a specific product or service. In contrast, the venture studio model may involve recruiting new entrepreneurs or teams to build and launch companies within the studio's portfolio.

Then there is the question of investment. Startup studios typically invest their own funds into the companies they create, and may also seek outside investment from venture capitalists or angel investors. 

In contrast, venture studios may provide funding to their portfolio companies but typically focus on providing other resources, such as mentorship, expertise, and shared services.

Startup studios are also more involved in the management of their startups. They typically have a more hands-on approach to managing their portfolio companies, providing strategic guidance and operational support to help them grow and succeed. In contrast, venture studios may take a more hands-off approach, allowing the portfolio companies to operate independently.

Finally, there is the aspect of focusing on a specific niche. Startup studios may focus on a specific industry or type of product, such as e-commerce or mobile apps, and may develop multiple companies in that space. Venture studios may have a broader focus, creating and launching companies across a range of industries and markets.

This means that the startup studio model and the venture studio model share many similarities but differ in their approach to founding teams, investment, portfolio management, and focus areas. 

Both models can be effective in creating and launching successful startup companies, but the best approach will depend on the goals and resources of the organization implementing the model.

Building An App With A Venture Studio

Building an app can be a complex and challenging process. From ideation to launch, there are many steps involved in creating a successful mobile application. One approach that has gained popularity in recent years is building an app with a venture studio in particular.

This is because when building an app with a venture studio, you gain access to a wealth of expertise and resources. Venture studios typically have a team of experienced entrepreneurs, designers, developers, and marketing experts who can provide guidance and support throughout the entire app development process. This can help you to avoid common pitfalls and ensure that your app is well-positioned for success.

Along with better guidance comes a faster time to market. Venture studios have a proven track record of helping startups to bring their products to market quickly. This is due to the fact that venture studios have the necessary resources and expertise to streamline the development process. 

By leveraging their existing infrastructure and networks, they can help you to build and launch your app in a fraction of the time it would take to do it on your own.

Then there is the issue of risk. Building and launching a new app is fraught with risks and potential pitfalls. Even with the best planning and execution, there's always a chance that your app will fail to gain traction in the market. 

Working with a venture studio can help to reduce this risk. Venture studios have a portfolio of companies, which allows them to spread their risk across multiple ventures. This means that if one app doesn't perform as expected, the venture studio can still be successful overall.

With access to expertise and resources, a faster time to market, reduced risk, and access to more resources, working with a venture studio can give your app the best chance of success. 

So if you're looking to build the next big thing in mobile apps, consider working with a venture studio to help bring your vision to life.

‍We are a venture studio that learned what worked from building 14 internal startups and 50 client apps to one billion dollars and now have a playbook that can work for your app.