7 reasons why Entrepreneurs love Startup Studios
Startup Studios have probably headlined almost every discussion about venture building and entrepreneurship in recent years, however, the excitement surrounding it still remains a mystery for many. While investors and investment firms have catapulted the need for raising funding for a business idea, Startup studios have been slowly propagating the entire experience of a holistic process replete with mentorship, talent-pooling, proven processes, and able leadership within an extremely agile venture-building ecosystem. Now, the insurmountable attention that Startup Studios are enjoying in the present time could be either attributed to the vastly experienced teams working in the background or the string of recent success stories that have made their way out of these very studios. However, the current excitement and the future around startup studios should also be understood in the context of why more and more entrepreneurs and founders are leveraging startup studios to build their ventures.
While a successful track record for a studio could be alluring enough, there is a multitude of reasons why entrepreneurs love startup studios, here’s our top 7 from the gamut:
Studios become the co-founder we all need
Unlike investors or capital firms, startup studios prefer a deeper skin in the game in order to Fastrack the venture’s journey to success and thus, more often than not they will partner with entrepreneurs as co-founders. This enables the founder to join a global pool of highly experienced resources, talent, cutting-edge technological acumen, and more and provides them with opportunities for both personal and professional growth. Studios, once they have chalked out the formalities and plans will also help the entrepreneur with developing the MVP, testing and trying it with actual users before making it a perfect fit for the market. These processes that are employed by a studio and may not be conducted by an entrepreneur herself reduce the risk of failing with a lot at stake and leaves enough room for continuous perfection of the product. Studios, due to their model of being more heavily invested in the venture usually take their success in the growth of the startup and not just the monetary returns.
A team at the disposal
Venture creation journeys are often stifled because of the lack of required resources or those wearing multiple hats not being able to deliver properly. A startup studio more often than not employs an in-house team of designers, marketers, developers, admin personnel, and more in order to cut down on the delays and speed up the entrepreneurial process. Thus, through a studio entrepreneurs get access to an experienced team at the very nascent stages of their venture at almost no cost. The resources at the studio are experienced individuals who can leverage the studio environment in order to speed up the process of product development, iteration, and scaling.
In it together to take it a step further
The majority of startups fail because founders tend to make simple, similar mistakes regardless of where they are based and the domain they operate in due to the lack of communication when it comes to learning from each other’s mistakes and/or successes. Startup studios, along with bringing experienced people together also sets alive a platform for shared learning, idea sharing, and collaboration that not only reduces the risk of failing but also enables one to learn from others’ experiences.
Ideas may come and go, but the team stays put
While a startup may face multiple challenges which may lead the founder to pivot, a startup studio isn’t overwhelmed by failures and in case a venture doesn’t work they will simply reallocate the team to either manage another portfolio company or take the lead in creating a new venture. This provides entrepreneurs with a splendid opportunity to not only risk-avert but also gain valuable learnings and experience in building and running ventures.
Access to Funding
According to research, more than three-quarters of startups failed due to running out of cash or a lack of funding. In fact, lack of funding is one of the top reasons why emerging businesses fail. Studios are able to tackle this by providing seed and growth funding to their companies, which helps the companies they work with to focus more on building the business itself rather than spending time raising capital.
Picky about partners
Startup studios, owing to their nature of establishing a deeper skin in the game and being heavily invested in building a venture are able to put forth the idea of highly selective partnerships. Every studio wishes to commit success to any venture idea they partner with and thus, it’s in there and the entrepreneur’s best interest that the studio is mindful of its resource utilisation and the value they are able to generate through that for both the enterprise and the entrepreneur. Startup studios, unlike traditional investors, are more likely to be with the entrepreneur for a long time with the final stage either being acquisition or equity holding, they need to be pickier in order to ensure that every venture enjoys an equal amount of work and attention.
They know the market
Most startup ideas fail not because they are bad ideas but because they aren’t great product-market fits. In order to curb this risk, startup studios are very sceptical before launching a new venture. A studio will conduct a series of research and analyses to confirm the viability of the product/idea in the market. This saves the entrepreneur millions of dollars of funding just to test their product in the ruthlessly wide and competitive market. Now, it can be well ascertained as to why startup studios are enjoying the attention that they are getting especially when it holds so much potential for an entrepreneur or a founder that he/she wouldn’t otherwise have tapped into. If you are still wondering if Startup Studios are the best for your venture idea or your next big expansion, let our team at Growvalley guide you through what could be your secret sauce to swift success.