This is why we invite you to join & contribute to the Big Venture Studio Research 2024

The existing data on venture studios needs to be improved

According to Enhance Ventures, there are 903 venture studios worldwide. Still, the data about the studios’ effectiveness has many problems – it’s one of the reasons for skepticism about venture studios. You saw these numbers:
  • Studio startups exit 33% faster and get seed funding twice as fast

  • 53% IRR of studio startups vs. 21% IRR of traditional startups

  • 60% of studio startups reach Series A
The majority of such numbers are influenced by at least one (often more) drawback we could identify and, thus, may be subjected to errors and biases we’ll describe below.
Understanding which factors are more critical for the success of startup studios, as well as the comparison of investment efficiency & startup development efficiency between studios, accelerators, VCs, & usual startups, will benefit the venture ecosystem.

Whether you’re a studio founder, researcher, or simply interested in the topic – join our research as a contributor or a sponsor by filling out this 1-minute form.

160+ studio operators/creators expressed interest in our research. Join us!

Max Pog
3x entrepreneur

6 drawbacks in the existing data on studios

Recently, we have started to check the most citable and popular sources of knowledge about venture studios in terms of methodology, measures, and data. We have examined over 10 materials and are ready to share our conclusions. That is to note, all these sources come from well-known networks, studios, academia, and VC funds and are heavily (re)cited. What we’ve discovered was slightly surprising but still explainable:

Maxim Malyy
Ph.D., Research Scientist @ Niches

Ways of solving the data problems

We aim to perform extensive research on venture studios by all academic rules and with direct review from experienced scholars. Following 4 scientific research principles (empiricism, parsimony, replicability, falsifiability), we desperately want to study the performance of venture studios and their startups to provide reliable arguments for their higher/lower/similar performance.

In particular, we aim to find answers to these major questions in our next research:

1. Is the allocation of funds to venture studios’ startups more effective than to startups from other startup-supporting organizations (accelerators, early-stage VC funds) or directly to startups?

2. Are venture studios more effective startup growth mechanisms than other startup-supporting organizations or stand-alone startups?

3. Which factors drive venture studio performance?

To reach this goal, we plan to implement the following ideas:

1. To make a direct comparison of the other early-stage startup-supporting organizations (accelerators, early-stage VC funds) with venture studios. As a benchmark, we want to use the growth metrics of startups, which were launched without any early external support.

2. To collect non-financial data (e.g., business model, market segment, industry, foundation period, etc.) of startups and make a clustering analysis. In other words, we want to see if any differences in studio startups’ performance are driven by specific qualities or external factors.

3. To employ transparent measures, directly built from to-be-collected raw data on startups. We plan to get these measures mainly from public sources, with some inputs to be provided by studio managers. For instance, we intend to utilize TTMC (Time To Market Cap) and MCAP (Market Cap) Growth Rate, known to reflect new ventures’ evolution more rigorously (Ramadan et al., 2015; Malyy, Tekic and Podladchikova, 2021).

Why this studio knowledge is important?

1. Investors, selecting where to allocate their funds, get (perhaps) over-estimated evidence on venture studios. They see these outperforming metrics with low transparency or imprecise logic and become more skeptical about venture studios. And since venture studios are quite new and emerging, such skepticism directly and negatively influences the dynamics of their market adoption rate. Especially since private investors are mainly influenced by their psychology rather than experience when making investment decisions (Hoffmann, Post and Pennings, 2013).

2. Venture studios look less professional. By some market players, they may even be perceived as an overblown hype trend, like once popular and now forgotten ICOs (sorry to mention :no_mouth:). This fact makes it harder to convince early investors to provide their funds to studio startups.

3. While emerging, venture studios are fragile. One may decide to set up a studio following the provided metrics and end up with unjustified expectations or even bankruptcy. While this situation is quite common for new enterprises, our mission is to help venture studios evolve and succeed.

Before you know the benefits of contributing to the research, check what help we need:

Of course, this kind of complex research can hardly be done without external help. We need access to the costly sources of startups’ valuation data (like CB Insights and Pitchbook) and raw metrics of startups provided by startup-supporting organizations (of course, in anonymized or NDAed ways). The more raw data we have, the more valid the results will be and the more precise picture of the studios’ performance you’ll get.

Whether you’re a studio founder, researcher, or simply interested in a topic – join our team and contribute to the research by filling out this form. The ways you can add to this research:

1. Sponsorship: such complex research requires additional resources to get data and support the flow

2. Access to databases: if you have access to the mentioned databases, you can directly help us with the needed data

3. Participation: as a studio, you may provide us with your raw anonymized and NDAed track records, which we translate into valuable insights; your success/unsuccess and experience don't matter, we want to get the most comprehensive insights

4. Hands-on assistance: personally excited with our goals? Join our team and help in data gathering, analysis, and reporting!

What benefits do you get by joining our research project as a contributor or a sponsor?

  • Mission. If you're interested in promoting the venture studio model & community – this 2024 research is a project with huge leverage – tens of thousands of VCs, studios, investors, & founders will be influenced by this work.

  • PR for you (as a contributor) & your company (as a sponsor). Our previous research gathered >50,000 views from a highly relevant audience. We'll give credit in the paper to all the contributors. For sponsors – we'll provide maximum visibility for your studio not only in the 2024 research paper but also in our other resources (including potential speaking at our events & podcast recording). Learn about the sponsorship options (from $500 to $4500).

  • Various additional materials generated from our data and their on-demand creation. Despite the report itself, we believe there could be more valuable outcomes made from the data we are going to collect (charts, tables, ratings, etc.). Enhance your marketing materials with our reliable and timely data!

  • The VSF trust signal to your studio website to increase the trustworthiness for investors. Our ultimate goal is to generate industry-standard results, which will help to raise reliance on venture studios and startups they make. By participating in the study and providing your data, you will get the Venture Studio Family trust signal (according to the entirety of the data provided) to tell your potential investors directly about your high-quality standards of doing business. More information on trust signals and their influence on business can be found on this Wiki page and this book.

  • Expansion of your network with the industry's top professionals. We aim to attract and ignite the coolest minds from the venture studio network. By joining research, you will have a chance to work together, share ideas, and maybe (who knows?) launch something great in the future.

  • Collaborate in the execution of an academic study. Whether you are building your thesis, thinking of a scientific publication, or writing a book on the topic, we are ready to share the data we’re going to collect and feedback/advise/assist in writing the material.

Previous knowledge is, of course, great and vital, but we want to take a step forward and provide market players with actual, transparent, and backed conclusions. Startups are risky, and so is venture capital (why is it called “venture” otherwise? :grin:). Startup/venture studios are still risky as well. We want to decrease this risk by proposing data-driven insights and high-quality scientific conclusions. Join our study and become a part of elevating the startup studio industry!