How To Find The Right Startup Studio
A startup studio is an organization that aims at building several companies in succession. The business model first emerged in the mid-90s. Back then, many of the frameworks and technologies that modern studios rely on simply did not exist. These include smartphones, big data, and perhaps the most important: cloud computing.
We have come a long way since the 90s, and startup studios have evolved. There are many ways to categorize studios, but the two most relevant models are:
- Venture Builder: The objective is to build startups from the ground up based on analyzing current market trends. Usually, this type of studio is created by seasoned founders.
- Investor Studio: These studios partner with early-stage startups and provide them with the right resources and knowledge. In addition, investor studios support the everyday operations of these businesses.
Building a startup is not exactly a walk in the park. It’s often romanticized in movies (hip coworking offices, chefs, and ping pong tables. ) — but the realities of startup life are far from glamorous. The moment you start your company, you will face five challenges:
- Validating your idea
- Hiring the right team
- Building a product or service people want
- Choosing the right partners
- Raising capital
Startup studios have been very successful because they can help founders with these challenges. But how do you know which one is right for you?
The two key factors are focus and networking. There are always subtle differences that make each studio unique and determine whether it will be a good fit for your startup or not.
Focus
Startup Studios usually include diverse teams that offer specialized insights into multiple industries. The right partner should have a proven track record in the industry your startup is trying to disrupt. You can quickly determine the focus by studying their portfolio to identify industries where they have been the most successful.
How do the success stories of their portfolio companies relate to your specific industry?
Networking
Many talented co-founders are introverts by nature. Coding and coming up with creative business models comes easy to most of them. Networking can be tricky even for extroverted people. Not every startup studio offers the same quality networking. Moreover, their particular network might not be the most relevant for your startup. One mistake is to assume that all studios will offer networking opportunities by default.
Will joining a startup studio improve your chances of meeting the right people?
It has never been easier to start a company. It’s also easier to fail. As a founder, you need all the help you can get. A startup studio might be the right option for many founders, but it’s not for everyone. Take the time to do your homework and ask the right questions.
