How The Best Venture Studios Build Profitably
We’ll take a closer look at how venture studios work, examples of the successful ventures that came from them, and what it’s like for founders to join one
Venture studios have become increasingly popular in recent years as a way to launch and grow successful startups or apps- because they are at their core, more risk-averse than launching your own average business. But why so? How is it that this model can keep building profitably even if their ventures may not make it all the way to launch?
Unlike traditional venture capital firms, venture studios take a more hands-on approach to building businesses from scratch. They manage to do this by assembling a team of experienced entrepreneurs, developers, and business experts, so venture studios are able to rapidly prototype, validate, and scale new ideas in ever-changing markets..
This approach allows them to quickly identify and address market needs, iterate on products and services, and build sustainable business models that generate significant revenue and profit. By leveraging their expertise and resources, venture studios are able to consistently produce high-growth startups that have a better chance of success in the long run.
Below we’ll take a closer look at how venture studios work, some examples of the successful ventures that came from them and what it’s like for founders to work with them.
How A Venture Studio Works
A venture studio is a unique type of business incubator that operates quite differently than traditional venture capital firms. Instead of investing in existing startups or app builders, venture studios specialize in creating new businesses from scratch by bringing together a team of experienced entrepreneurs, developers, and business experts to make the idea a success.
Usually, this is done based on existing processes that have been built up by the venture studio over years of working on various projects.
Therefore the team works together to identify market opportunities, develop new products and services, and build sustainable business models. This means that for founders, venture studios provide resources, and support throughout the entire business process, from idea generation to product development, marketing, and scaling.
But how does a venture studio differ from a startup incubator or accelerator?
Differing from traditional accelerators or incubators, venture studios take a more hands-on approach, providing significant strategic guidance and operational support to their portfolio companies. This approach allows venture studios to create high-growth startups more efficiently and effectively, resulting in a higher success rate than traditional venture capital firms have.
How Venture Studios Select Business Ideas
Venture studios are known for their ability to generate innovative and successful business ideas. These studios take a team-based approach to ideation. The team at a venture studio typically consists of experienced entrepreneurs, developers, and business experts who collaborate to identify new business opportunities and evaluate their potential for success.
They use a variety of methods such as market research, trend analysis, and customer feedback to identify unmet needs and pain points in the marketplace.
Once an idea has been identified, the team works together to rapidly prototype, test, and refine the concept before launching it as a new business. This iterative approach to idea generation allows venture studios to quickly identify and capitalize on emerging trends, and develop successful businesses that meet the needs of customers in today's rapidly evolving market.
Examples Of Successful Venture Studio Businesses
Venture studios have a proven track record of generating successful startups. Some of the most well-known and successful companies that have emerged from venture studios include Uber, Airbnb, and Warby Parker. These companies were all created through a combination of innovative thinking, market research, and rapid prototyping - all under the umbrella of venture studios.
Another example is Atomic, a venture studio that has launched successful startups such as Hims, TalkIQ, and Bungalow. Hims is a direct-to-consumer men's wellness brand that has raised over $200 million in funding, while TalkIQ is an AI-powered conversation analytics platform that was acquired by Salesforce.
Bungalow is a co-living startup that has raised over $14 million in funding to date. These success stories demonstrate the power of venture studios to generate innovative business ideas and bring them to market with a high chance of success.
What Founders Can Expect From Working With Venture Studios
Founders who work with a venture studio can expect a collaborative and supportive environment that is focused on launching and growing successful startups and apps.
Business founders who work with a venture studio can expect to receive a wide range of resources and support, including access to funding, mentorship, expertise in areas such as marketing, product development, and business strategy, as well as a supportive community of like-minded entrepreneurs who act as mentors.
Venture studios also provide a structured approach to launching and growing a startup, with a focus on rapid prototyping, testing, and iteration to ensure that the product or service meets the needs of the target market. This approach can help founders to minimize risk and increase their chances of success, while also providing a platform for growth and scalability as the business grows.
Rather than focusing on a single idea or entrepreneur, venture studios assemble a team of experts who collaborate to identify and evaluate new business opportunities. This approach allows venture studios to rapidly prototype, test, and refine new ideas, minimizing the risk of failure and increasing the chances of success.
By leveraging these resources and taking a data-driven approach to decision-making, venture studios are able to identify and mitigate risks early on, making them more risk averse in the long run.
Examples Of Great Venture Studios
Here is a list of leading venture studios that founders can start with when looking to build their own business.
- NineTwoThree Venture Studio
- Betaworks Studios
- High Alpha
- Human Ventures
- Science Inc.
- The Brandery
Each of these venture studios has a proven track record of launching successful startups and providing support and resources to entrepreneurs.
From rapid prototyping and product development to marketing and fundraising, these venture studios offer a range of services to help startup businesses succeed. Whether you're a first-time entrepreneur or a seasoned pro, working with a venture studio can be an excellent way to launch and grow your business.
Working With NineTwoThree Venture Studio
We build mobile and web apps for funded startups and tech brands - as 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!
We help established brands iterate like startups and startups scale like established brands. Partnering with industry leaders and visionary entrepreneurs we focus on profit producing applications that are a delight to use.
We leverage this transformation through the power of agile methodology, design thinking and impeccable engineering to help our clients rapidly identify and validate new products.
And we have the stats to back it up...
-11 Years in business
-#1 Boston Agency
-x2 Inc 5000 Fastest growing
Leapfrog the competition by working with an experienced venture studio like NineTwoThree Venture Studio!