The Venture Studio Model from a Bird's-Eye View
At Hunsicker, we're fueled by a shared vision of creating indispensable solutions to the world's most fundamental problems. As avid entrepreneurs ourselves, each of our team members has experienced the highs of success, offset by a hearty dose of failures. Entrepreneurship is hard, and it’s even harder when you’re going it alone.
We’ve seen how the traditional solitary startup approach can lack the necessary support and resources to tackle complex challenges, let alone generate solutions capable of long-term impact. And that’s backed up by data too - as of 2023, only 10% of startups achieved an exit in the form of an IPO or acquisition1. That's why we honed in on the venture studio model - a dynamic and collaborative approach that enables our team, in partnership with other talented entrepreneurs, to execute on Hunsicker’s mission with higher rates of both velocity and success2.
Unlocking Potential: The Power of Great Teams from Day 1
At their core, Venture Studios, or Studios for short, enable founders to maintain intense focus on building by means of a studio team that provides comprehensive support through strategic advice, access to first customers, backend business operations, talent recruitment, and initial funding. Liberated from the stress of limited resources and management complexities, founders can take calculated risks, experiment at accelerated velocities, and thoroughly vet their ideas with the backing of experienced entrepreneurs who understand their journey intimately.
Studios are committed to creating and launching their own ventures, often from scratch, in collaboration with their in-house team of experts and external co-founders. Unlike accelerators and incubators, which select external startups to join their often fixed-term programs that focus on mentoring and networking with limited funding, studios actively identify, validate, develop, and fund ideas internally, leveraging their resources and expertise to build scalable businesses. This unique approach allows studios to take more significant risks, experiment with ideas, and provide continuous support to their ventures from ideation to scale, ultimately increasing their portfolio companies' chances of long-term success.
Rise of the Studio: Pioneers in the Venture Building Landscape
Since their founding in the mid 2010’s, organizations such as HVF Labs, Science Inc., Atomic, and Betaworks have emerged as trailblazers in the studio landscape, generating ventures like Hims, Snowflake, Giphy, Dollar Shave Club, and Affirm, to name a few. These studios have demonstrated the model’s ability to support founders and resultant innovation through a holistic approach that extends far beyond financial backing. By offering strategic guidance, operational support, industry expertise, and unlimited access to networks and early customers, new ventures are built to succeed from day 1. The explosion of studio creation shown below serves as just one indicator of the model’s success3.
The Studio Advantage: From Ideation to Scale
An even bigger data point of success lies in a studio’s ability to de-risk and expedite the journey from concept to scalable solution. At Hunsicker, we've developed a proprietary playbook - a proven process that guides founders through every step of the journey, from day 0 to scaling with external funding from outside of the studio. Each stage is meticulously assessed against key criteria, ensuring that only the most promising ideas move forward. The rigorous approach prevents wasted time and resources, encouraging pragmatism. By validating assumptions early on, we gain a deep understanding of our customers' needs and are able to ensure that the problems we aim to solve are actually problems, positioning our new ventures for success right out of the gate.
Note: We’ll go into greater detail on how the above advantages have proven significant economical upside for both founders and investors in studio portfolio companies alike in our next content piece on The Math behind Startup Studios.
Hunsicker’s Adaptation
The proliferation of studios in the U.S. has occurred in predominantly coastal regions - it’s not every day that studios are formed in Lexington, Kentucky. Passionate innovators just the same, our team sees the opportunity to leverage our strong relationships within industries traditionally overlooked by venture innovation and provide unparalleled access to early customers and untapped opportunities. Our unique position allows us to build openly, test and iterate at a remarkable velocity, and engage in meaningful conversations with customers, advisors, and investors in minutes rather than days. This strategic advantage underpins our studio model, enabling us to deliver genuine value and sustainable growth through unwavering support for founders within our community and beyond.
The Road Ahead: Unleashing the Potential of Venture Studios
The increasing growth trajectory of venture studios is undeniable. As more founders and operators recognize the distinctive benefits offered by the model, the startup landscape is on the brink of a transformative shift. Studios foster an ecosystem of support, collaboration, and expertise yet to be seen in new venture development. As Hunsicker continues to champion the studio approach, we eagerly anticipate witnessing the powerful impact our portfolio companies and founders will make, alongside the successes and innovations that other exceptional studios will bring forth.