With private markets awash with capital, there are so many new venture funds that have been created in the last few years. One of the models I’ve been really interested in is the startup studio model - a firm that builds companies by actively testing a specific thesis or idea. Some studios focus on novel ideas, others create clones for underserved markets. Some build operating teams, others just look to create the founding team. This article goes through the evolution of the model and lists some of the most popular studios operating today, as well as their approach to the model.
It’s a really interesting take and another example of venture taking different forms, especially in early stages of company formation. Sometimes the studio environment is perfect for a startup or team, and other times it won’t work. That said, while there isn’t any quantifiable evidence that it convincingly works better than the current venture model (atleast not yet), it’s really healthy to see funds playing experimenting with how they add value in different ways.