Business Models
Studio Model
Also Known As
Studio StructureVenture Builder Model
The studio model refers to the organizational structure, funding mechanism, and operational approach that defines how a venture studio creates companies, compensates team members, and generates returns.
What is the Studio Model?
The "studio model" describes how venture studios are structured and operate. While all studios share the core concept of building multiple companies, they vary significantly in structure, funding, and approach.
Studio Model Variations
By Funding Structure
-
Holding Company Model
- Studios and portfolio companies owned by single entity
- LPs invest in holding company
- Simpler structure, less flexibility
-
Dual-Entity Model (Fund + Studio)
- Separate operating company (studio) and investment fund
- Fund invests in portfolio companies
- Studio charges fund for services
- More complex, more aligned incentives
-
Self-Funded/Bootstrapped
- No external LPs
- Funded by founders' capital or studio revenue
- Maximum control, limited scale
By Idea Source
- Internal Ideation: Ideas generated by studio team
- External Founders: Recruit founders with ideas
- Corporate Partnership: Ideas from corporate partners
- Hybrid: Combination of sources
By Involvement Level
- High-Touch: Deep operational involvement (3-5 companies/year)
- Medium-Touch: Selective support (5-10 companies/year)
- Low-Touch: Light support, higher volume (10+ companies/year)
Example Usage
“High Alpha pioneered the dual-entity studio model, combining a venture fund with an operating studio.”
Real World Examples
High AlphaAtomicIdealab