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Core Concepts

Portfolio Company

Also Known As

Spin-outStudio Company

A portfolio company is a startup that has been created by, incubated within, or invested in by a venture studio, becoming part of the studio's collection of companies.

Portfolio Company Definition

In the venture studio context, a portfolio company is a startup that the studio has helped create and in which it holds an equity stake. The collection of all such companies forms the studio's "portfolio."

Studio Portfolio vs VC Portfolio

AspectStudio PortfolioVC Portfolio
OriginBuilt internallyExternal investment
Equity30-50%10-25%
InvolvementCo-founder levelBoard/advisory
RelationshipCreated togetherInvested in

Portfolio Management

Venture studios actively manage their portfolios by:

  • Providing ongoing operational support
  • Facilitating knowledge sharing between portfolio companies
  • Managing follow-on investments
  • Supporting exits (acquisition, IPO)

Example Usage

“As a portfolio company of High Alpha, the startup had access to shared services and expert guidance.”

Real World Examples

Delivery Hero (Rocket Internet)OpenTable (Idealab)

More Core Concepts Terms

Venture Studio

A venture studio is an organization that systematically creates and builds multiple startups from the ground up, providing ideas, initial funding, operational support, and founding teams.

Startup Studio

A startup studio is synonymous with venture studio—an organization that builds multiple startups internally by providing resources, teams, and capital from idea to launch.

Venture Builder

A venture builder is an organization that creates and develops startups internally, providing hands-on operational support, resources, and capital throughout the company-building process.

Spin-out

A spin-out occurs when a venture studio formally launches a new company as an independent entity, typically after the concept has been validated and a founding team is in place.

Thesis

An investment thesis is the strategic framework and set of beliefs that guide a venture studio's decisions about which types of companies to build, which markets to target, and what opportunities to pursue.

View All Glossary Terms