As the venture studio model continues to gain traction worldwide, new initiatives are emerging across industries, focusing on innovation in energy storage, healthtech, and pet care, while some face financial and strategic challenges. This article explores the latest developments shaping the venture studio ecosystem.

GenLab Launches Silicon Valley Venture Studio for Energy Storage Innovation

On February 11, 2025, GenLab Venture Studios announced the launch of a new venture studio in Silicon Valley aimed at driving innovation in energy storage and AI infrastructure. With artificial intelligence increasingly demanding energy-intensive processing, this initiative seeks to alleviate pressure on national power grids by developing next-generation storage solutions.

The studio, led by CTO Sarah Novotny, will focus on creating advanced grid resilience technologies that ensure energy efficiency and sustainability. Leveraging cutting-edge agentic AI, GenLab aims to enhance energy storage capabilities for data centers and industrial applications, positioning itself as a key player in the clean energy transition.

Company Ventures Unveils Terrarium Venture Studio to Support Healthtech Startups

On February 18, 2025, Company Ventures, in collaboration with innovation consultancy Cactus and Wellstar Health System, launched Terrarium, a new venture studio focused on incubating startups in the health technology sector.

Terrarium plans to support up to ten startups over the next three years, with an emphasis on market validation through research-driven development. The first startup emerging from this initiative, Rota Health, is dedicated to solving healthcare data interoperability issues by leveraging artificial intelligence to streamline medical data integration.

By providing mentorship, funding, and strategic partnerships, Terrarium aims to bridge gaps in healthcare innovation and accelerate the adoption of transformative digital health solutions.

Leap Venture Studio Announces Ninth Cohort for Pet Care Startups

Leap Venture Studio & Academy, a leading accelerator program for pet care startups, has announced its ninth cohort, providing six innovative companies with funding, mentorship, and business development support.

The program, running from February to May 2025, will conclude with a Demo Day in London. Participating startups, including BistroCat, Buddy Bites, Happy Howl, James & Ella, Oh Norman!, and Otis, are pioneering new approaches in pet wellness, nutrition, and AI-driven pet care solutions.

With increasing consumer demand for premium pet products and services, Leap Venture Studio continues to foster high-growth companies that redefine the pet industry.

Avandra Raises $17.75 Million to Advance Real-World Medical Data Utilization

Avandra, a federated network specializing in medical imaging and clinical data, has successfully secured $17.75 million in funding to expand its data-sharing platform. The round, co-led by Aegis Ventures and SpringRock Ventures, will enable Avandra to enhance its data infrastructure and form new partnerships with leading healthcare providers.

The company’s mission is to improve real-world data accessibility for medical researchers and biopharmaceutical companies, accelerating drug development and personalized medicine. By leveraging AI and machine learning, Avandra aims to bridge the gap between raw medical data and actionable insights, ultimately improving patient outcomes.

54 Collective to Shut Down African Venture Studio Operations

Despite the growing global momentum of venture studios, not all initiatives thrive. 54 Collective, formerly known as Founders Factory Africa, has announced the closure of its venture studio operations on the continent, citing strategic shifts and funding challenges.

The decision comes as the organization’s partnership with the Mastercard Foundation is set to end in April 2025. This shift marks a significant change in the African startup ecosystem, raising concerns about the sustainability of venture-backed innovation models in emerging markets.

As Africa continues to develop its entrepreneurial landscape, the closure of 54 Collective highlights the ongoing funding constraints that many venture studios face, emphasizing the need for sustainable financing models to support long-term startup growth.

NEC X Partners with Carbide Ventures to Accelerate Early-Stage Startups

Silicon Valley-based NEC X has announced a strategic partnership with Carbide Ventures to boost early-stage startups. This collaboration aims to provide emerging companies with crucial resources, industry expertise, and mentorship to help transform promising ideas into scalable businesses.

By leveraging NEC X’s technical expertise and Carbide Ventures’ experience in startup acceleration, the partnership seeks to drive innovation across multiple sectors, including AI, robotics, and deep tech. This initiative underscores the growing role of venture studios in bridging the gap between cutting-edge research and commercial success.

Venture studios are transforming the startup ecosystem with their unique approach to company building—one that combines funding, hands-on support, and structured execution. A recent in-depth analysis from the Big Venture Studio Research 2024 (Authors: Maksim Malyy, PhD; Max Pog & Contributors) illuminates the key success factors in this model. We, at Mandalore Partners, analyzed the latest findings, revealing both the strengths and challenges of venture studios today.

In Short:

Venture studios are redefining startup creation by combining funding, hands-on support, and structured execution. They typically invest $130,000 for 17% equity, positioning themselves between accelerators and VC funds. However, success is elusive, 76% of startups fail, and exits take over seven years on average. Key success factors include experienced founders, strategic use of Entrepreneurs in Residence (EIRs), and efficient MVP development. Studios that combine consulting services with startup-building and maintain lower equity stakes outperform pure-play models. Ultimately, studios follow two paths: stable, predictable growth or high-risk, disruptive innovation. The future of venture studios depends on mastering this balance.

A Standardized Model Focused on Startup Building

Modern venture studios operate under a distinct framework. Most follow a pure-play model, focusing exclusively on launching startups rather than diversifying into corporate partnerships or fund management. While typically sector-agnostic, they commonly operate in Health, B2B SaaS, Fintech, and Sustainability. The venture studio boom centers primarily in the US and Europe, with most adopting a single studio model—operating without an associated VC fund backing.

Venture Studios Invest Early for Meaningful Equity

Venture studios typically invest an average of $130,000 per startup for 17% equity, acting as active, early-stage investors. Their startups begin with a pre-seed valuation of $1.09 million, positioning them between accelerators and traditional venture capital funds. This investment level secures a meaningful stake while preserving room for future investors.

High Failure Rates and Long Exit Timelines Define the Game

Despite their support structure, venture studios face significant challenges. They see a 24% exit to 76% failure ratio—meaning three of four studio-backed startups fail. Let’s be precise on that point: success here was defined as any startup that did not go bankrupt.

Exits take time, averaging 7.11 years, typically through VC exit. The process is highly selective: studios review 200 ideas, develop 40 MVPs, yet only one reaches an exit - an exit was defined here as any occurrence of a liquidity event, quite a broad definition. Adding to these challenges is a negative valuation growth trend - obviously negative as 76% of startups fail - with startups losing an average of -$0.14 million per year in value, when VC funds are at -$0.12 million per year.

Support Services are common, but Market Execution is Key

Entrepreneurs in Residence are vital to venture studio success, contributing during the early ideation phase or during the creation phase. Leading studios offer comprehensive support services: advisors and go-to-market (GTM) assistance appear in 91% of studios, while operational and technical development support exists in more than 80%. Over 70% of studios provide access to first customers and financial resources. Yet despite these advantages, negative valuation growth indicates that strong operational support alone isn't sufficient—market execution remains crucial.

Hybrid Studios See Higher Survival Rates

Success varies significantly among venture studios. Those combining consulting or corporate services with startup-building achieve an impressive survival ratio, outperforming pure-play studios. Studios being vertical agnostic achieve a 19% success rate.

Scale significantly influences success. Studios launching between four and seven ventures yearly outperform those with lower output. At 30 ventures or more, success rates climb, highlighting the importance of operational experience and network effects. Equity structure also matters—studios keeping less than 20% equity achieve the highest success rates at 33%, likely by leaving adequate room for future investors.

Founder experience proves crucial. Studios recruiting founders with previous startup exits show better outcomes. Timing of EIR integration is also key—69% of studios with successful exits brought in EIRs during the creation phase, versus 46% among those without exits. This suggests that well-timed entrepreneurial leadership significantly impacts scaling and funding success.

Efficient MVP Development Increases Startup Survival

Product development efficiency strongly indicates success potential. Studios keeping MVP development costs under $50,000 achieve a 15% success rate, demonstrating lean development's advantages. Time of execution matters—MVPs launched within six to twelve months achieve a 21% success rate, higher than those launched in less than six months. Studios delivering fully functional, market-ready MVPs rather than prototypes reach 19% success rates, emphasizing the importance of quality execution.

Two Roads Diverge: Play It Safe or Go All In on Disruption

Research reveals two distinct strategic approaches. The first strategy prioritizes stable returns, focusing on predictable growth over high-risk bets. These studios target sustainable business creation through corporate focus or steady niche market growth. This approach offers lower but more predictable returns, suiting new studios without significant competitive advantages.

The second strategy embraces disruption and high-risk ventures, aiming to create breakthrough companies through cutting-edge technology, innovative business models, or exceptional talent. While offering potential for massive returns, this path carries a high failure rate and demands unique competitive advantages. Research suggests newcomers should start with the stable returns strategy before attempting disruptive startups.

The Future of Venture Studios Lies in Execution and Adaptation

The data presents clear insights into venture studio evolution and success factors. Despite high failure rates and valuation challenges, top performers follow consistent patterns. Studios that combine startup building with consulting services, maintain low equity stakes, develop MVPs efficiently, and integrate experienced founders strategically consistently outperform peers.

For investors and entrepreneurs, this research provides a clear framework for evaluating venture studio opportunities in 2025 and beyond. With strategic execution, venture studios can continue revolutionizing the startup ecosystem. The key question remains: who will master this model and shape the next generation of successful startups?

February 2025 : Venture Studios: Driving Innovation and Facing Strategic Challenges