With the advancing time, startups have been increasingly taking the hold of the business culture. There are a plethora of entrepreneurs with innovative ideas and creative thoughts. But, the problem that arises is that they do not have proper business models and funds to get into the business space.
To help such entrepreneurs, startup studios provide funds to them and help them in their day-to-day operations.
But what exactly is a startup studio?
Simply speaking, startup studio is an organization whose major task is to help and establish independent companies with their professionalized and iterative approach. These studios act as an investor to the company with an equity share of capital.
There are different types of startup studio models which we have discussed in detail in this blog.
1. Operator Model
Also known as a company builder, venture builder, or more typically a startup studio. This startup model is founded by successful serial entrepreneurs. Their main objective is to build the startups from the scratch based on the analysis of current trends and markets.
Through the process of ideation and validation, the studio supports the newly created startups by providing them resources and finances. For all the resources that work on any project, the studio even provides the initial salary.
This startup model is mixed funded with a very volatile process of orientation.
2. Agency Model
Agency models are largely funded by external cash flow such as agency services and customer orders i.e. this model generates the cash for the firm only through agency activities.
It is a trustworthy and reliable agency that makes use of the revenue from this activity to provide resources to the in-house idea development and creation of the startup. As compared to other startup studio models, the agency model is more process-oriented.
Agency work provides a unique outlook on the latest trends of the market and unmet needs. These types of models however have deep experience in software development and marketing.
3. Corporate Model
Also known as Corporate startup studio or corporate venture builder, Corporate models usually have big capitals and huge dimensions. Generally, these studio models are funded and financed by the corporations that they are working on for innovation activities. Simply, they are funded by the parent company.
In such models, the entire process of innovation is outsourced to a studio that manages it and oversees it within the company’s goals and scope.
It also provides the Studio with some important and powerful tools, such as distribution channels, know-how, IP, etc.
One of the most advantageous factors about this model is that it allows the corporation to benefit from the innovation process initiated by the studio with any major disruptions to their structure.
4. Technology Transfer Model
Technology Transfer Models are quite strong process-oriented models and to a major extent internally financed. These studios majorly focus on the research departments and the universities and work closely with them.
They commercialize all the innovative projects which are generated by the university and research institutes building companies that are newly launched in the market.
5. Investor Model
Investor model studios also known as Venture studios are generally created by the group of several investors who tend to fund the startups and invest in them as per the predefined metrics.
They are majorly financed internally and possess a very low degree of the orientation process. These startup models just not limit themselves for the funding but also provide the startups with the services and resources to support their growth.
This type of studio model is usually attached to a big venture capital firm that provides financial resources for the cost of operation and work as a capital source for portfolio companies.
Wrapping It Up
Here in this blog, we have mentioned 5 categories of startup models that work as per their predefined metrics. It would surely provide you with a better way of understanding the entire structure and models of startup studios.