The term “venture studio” may not be new, but we’d contend it’s widely misunderstood and misrepresented. At their core, venture studios build a series of companies from the ground up within their four walls. This is different than Venture Capital firms, Accelerators, and Incubators.
But not all venture studios are created equal. Many may claim that they’re vertically integrated, when in fact they are simply charging for services and grabbing equity. True venture studios can have different business strategies, funding models, operating platforms, idea sourcing and leadership structures, but ultimately, they are all still creating multiple startups within a structured process. Here, we explore the basic values of true venture studios, like NXT Ascent.
Company Creation Focus.
Venture studios have a variety of different business models; some solely build SaaS or B2B companies while others may focus on only big, audacious ideas. Here at NXT Ascent, we create & build consumer brand companies. We are an operations-focused venture studio that takes a hands-on approach to building branded products from scratch within a growth-investment blueprint from years of hard-won expertise and experience at successfully scaling businesses.
Structure & Process.
Venture studios are creating multiple companies simultaneously which makes operating structure and processes essential to success. Most studios base their operating structure on prior experience of the partners. At NXT Ascent our process is proven and streamlined. We are operators who understand the market, and draw on a growth-investment blueprint to help brands launch, scale and achieve profitability.
True venture studios will provide basic infrastructure to the companies they are creating. For example, we operate all our companies within a shared resources platform. By combining our shared resources operating platform and brand creation process, with a brand vision, we can increase performance that accelerates profitable growth.
This is where NXT Ascent may be different than most other venture studios. NXT Ascent takes a consumer first approach to create and build companies that engage the same customer pool (i.e., the NXT Ascent family). Our deep knowledge of this consumer allows us to build brilliant companies that make their lives better.
Where do these companies come from?
Venture studios have different idea development models. Some larger companies may create a venture studio to exclusively spawn companies from the minds of their most creative employees. Other studio’s may develop internal ideas of their founders. We cultivate ideas both internally & externally. If we know the problem we are solving for our customer, we want our team to create the solution. In addition, we can work with product development houses or inventors to create products that solve our problem. We will source company ideas externally by working with co-founders or inventors who have ideas that target our customer pool.
The rise in venture studios is showing that financial backing is only part of the equation and emerging brands are looking for more guidance. After all, venture studios have more than a superficial stake in the company and are invested to see it succeed - quite literally putting money where their mouth is.