The Corporate Venture Studio: A New Model for Innovation in Middle Eastern Conglomerates

In recent years, the Middle East has undergone a remarkable transformation. Governments are diversifying their economies beyond oil, digital infrastructure is expanding, and the region’s youth are embracing entrepreneurship at record levels. Amid this evolution, conglomerates, the long-standing giants of industry, are rethinking how they innovate.

Traditional corporate structures, while powerful, often struggle to move at the speed of startups. Bureaucracy, legacy systems, and risk aversion can make innovation slow and incremental. To overcome this, a new model is taking root in the region: the corporate venture studio, a hybrid engine that blends the agility of startups with the scale and resources of large enterprises.

This model is redefining how Middle Eastern conglomerates create new businesses, capture emerging opportunities, and sustain long-term competitiveness.

From Corporate Labs to Venture Studios: A Shift in Mindset

Historically, corporations have relied on R&D departments or innovation labs to develop new products. While these units generated valuable research, they often struggled to turn ideas into viable businesses. The corporate venture studio model solves this problem by focusing not only on ideation but also on venture creation, building actual startups that operate with independence but benefit from corporate backing.

Unlike traditional accelerators or incubators, corporate venture studios:

• Generate ideas aligned with the parent company’s strategic goals.

• Validate these ideas through market testing and lean startup methods.

• Build and fund the ventures using shared operational resources.

• Spin out or integrate the ventures once they reach maturity.

In short, corporate venture studios combine the discipline of corporate strategy with the speed of entrepreneurship, creating a win-win structure for both innovation and business growth.

Why the Corporate Venture Studio Model Fits the Middle East

The corporate venture studio model aligns perfectly with the Middle East’s current economic ambitions. Initiatives such as Saudi Vision 2030, UAE Vision 2031, and Qatar National Vision 2030 all emphasize entrepreneurship, private sector diversification, and digital transformation.

Conglomerates,  from family-owned enterprises to state-backed corporations, play a central role in achieving these goals. However, many face challenges such as:

• Limited internal agility to experiment with new models.

• Difficulty attracting entrepreneurial talent.

• Uncertainty around investing in unproven markets or technologies.

Corporate venture studios offer a solution. They allow these corporations to innovate safely, by separating risk from their core operations while still capturing upside potential from new ventures.

How Corporate Venture Studios Operate

A corporate venture studio is built on three foundational components: strategy alignment, venture-building capability, and governance flexibility.

1. Strategy Alignment

The studio starts by identifying strategic areas where innovation can create measurable impact,  for example, digital logistics for a transport company, fintech solutions for a bank, or sustainable energy technologies for an oil and gas enterprise.

The goal is to ensure that each new venture complements the corporation’s long-term vision while exploring adjacent opportunities that might not fit the core business today.

2. Venture-Building Capability

Once opportunity areas are defined, the studio uses startup methodologies to test and validate ideas quickly. This includes:

• Conducting market research and customer interviews.

• Building prototypes and minimum viable products (MVPs).

• Running pilot programs to assess demand.

By leveraging corporate resources, from funding to distribution channels,  studios can launch and scale ventures faster than independent startups.

3. Governance Flexibility

Perhaps the most critical success factor is autonomy. Corporate venture studios give each new venture the freedom to operate outside corporate bureaucracy. Founders and entrepreneurs-in-residence make rapid decisions, while the studio provides operational, legal, and financial support.

This balance of independence and backing allows ventures to innovate freely while benefiting from the credibility and infrastructure of their corporate parent.

Real-World Examples from the MENA Region

Across the Middle East, several forward-thinking corporations are already embracing this model:

• Majid Al Futtaim (UAE) launched its venture-building arm to create digital-first consumer businesses and enhance customer engagement.

• STC Ventures (Saudi Arabia) leverages its telecom expertise to incubate digital platforms in fintech, IoT, and entertainment.

• e& (formerly Etisalat Group) established e& Capital, which operates similarly to a corporate studio by investing in and co-building ventures that align with future connectivity and AI opportunities.

• Mubadala Capital (UAE) has increasingly partnered with venture studios to diversify into technology-driven sectors, bridging local capital with global innovation expertise.

These examples demonstrate that corporate venture studios are not theoretical experiments — they are becoming strategic innovation engines within the region’s largest enterprises.

The Advantages of the Corporate Venture Studio Model

The benefits for Middle Eastern conglomerates are substantial:

1. Accelerated Innovation:
   Ventures can move faster than internal teams, enabling corporations to respond quickly to market shifts.

2. Talent Magnet:
   Studios attract entrepreneurial talent that might otherwise avoid traditional corporate environments.

3. Risk Management:
   By structuring new ventures as separate entities, corporations can contain risk while testing new markets or technologies.

4. Strategic Synergy:
   Successful ventures can be integrated into the corporation’s portfolio, strengthening its competitive edge.

5. Sustainability and Diversification:
   Studios help corporations expand beyond their legacy sectors, supporting regional diversification agendas.

Challenges and Considerations

While the potential is high, building a corporate venture studio is not without challenges. Common pitfalls include:

• Misalignment between corporate culture and entrepreneurial thinking.

• Overly rigid governance structures.

• Unrealistic expectations of short-term financial returns.

To succeed, corporations must embrace a long-term mindset, empowering their studio teams with autonomy, budget, and tolerance for experimentation. The key is not immediate profit — but sustained capability to innovate continuously.

Final Thought: A Blueprint for the Next Era of Corporate Innovation

As MENA’s economies continue to diversify, the corporate venture studio model stands out as a transformative path forward. It bridges the best of both worlds,  the agility of startups and the strength of conglomerates, creating a platform where innovation can thrive sustainably.

For Middle Eastern corporations, this model represents more than a trend; it’s a strategic necessity. The future belongs to those who can build, test, and scale new businesses — not once, but repeatedly.

In a region defined by ambition and transformation, the corporate venture studio is emerging as the engine of the next wave of innovation, driving progress from within the walls of the region’s most powerful enterprises.

A Portfolio Approach: How Venture Studios Offer Diversified Exposure to MENA’s Startup Ecosystem

The Middle East and North Africa (MENA) region is rapidly evolving into one of the world’s most dynamic startup ecosystems. Fueled by ambitious government initiatives, an increasingly tech-savvy population, and growing access to capital, the region has become a fertile ground for entrepreneurship. Yet for investors seeking exposure to this vibrant landscape, navigating the risks and complexities of early-stage ventures remains a challenge.

Enter the venture studio model, a systematic approach to venture creation that offers a built-in diversification strategy. Unlike traditional venture capital, which typically invests in multiple independent startups with varying degrees of oversight, venture studios build, support, and scale multiple startups internally, effectively creating a portfolio by design.

Understanding the Venture Studio Model

A venture studio is more than just an incubator or accelerator. It’s a fully operational organization that:

1. Generates business ideas internally, based on market insights and strategic gaps.

2. Validates these ideas using structured experimentation and minimal viable products (MVPs).

3. Assembles teams of founders and operators to execute the ventures.

4. Provides shared infrastructure,  from product development and marketing to legal and finance support.

Because studios oversee multiple ventures simultaneously, they offer investors diversified exposure to a range of industries, business models, and market segments, all within a single organizational structure.

Diversification: A Built-In Feature

Traditional early-stage investing carries high risk. According to global benchmarks, over 75% of startups fail, often due to operational or market execution challenges rather than poor ideas. For investors in MENA, where entrepreneurial experience is still growing,  this risk is compounded by regulatory diversity, talent gaps, and market fragmentation.

Venture studios address this challenge through built-in portfolio diversification:

• Multiple Ventures: Each studio typically launches several startups per year, across different sectors such as fintech, healthtech, logistics, and edtech.

• Shared Resources: Operational functions, talent, and infrastructure are shared across ventures, reducing costs and failure rates.

• Data-Driven Decision Making: Studios track key metrics across all ventures, allowing them to double down on high-performing ideas and pivot or discontinue underperforming ones quickly.

For investors, this means risk is spread across multiple ventures, reducing the impact of individual failures and enhancing potential returns.

Why MENA Is Perfect for Studio Diversification

Several regional dynamics make the MENA venture studio model particularly appealing for portfolio-minded investors:

1. Emerging Market Dynamics: MENA markets vary widely in consumer behavior, regulatory frameworks, and infrastructure. Studios can test and scale ventures across multiple markets, capturing diverse opportunities while mitigating localized risks.

2. Sectoral Gaps and Opportunities: Rapid digital transformation and diversification agendas have created whitespace in sectors like fintech, logistics, e-commerce, and sustainability. Studios can simultaneously build ventures targeting different sectors, effectively hedging sector-specific risks.

3. Access to Talent: Venture studios leverage networks of operators, founders, and experts across MENA, ensuring that each venture has the necessary skills to succeed, which traditional investors may struggle to provide individually.

4. Government and Corporate Alignment: Studios often align ventures with national visions, corporate innovation programs, or public-private partnerships, increasing the likelihood of market adoption and long-term viability.

Investor Advantages: Beyond Traditional VC

Investing in venture studios offers LPs and institutional investors several advantages over traditional VC exposure:

1. Lower Risk Through Operational Oversight

Because studios manage ventures end-to-end, they reduce the execution risk that plagues early-stage startups. Investors gain confidence knowing that each startup benefits from a tested operational framework and experienced leadership.

2. Portfolio Diversification Without Fragmentation

Instead of spreading capital across dozens of independent startups, investors can allocate funds to a single studio, which itself manages multiple ventures. This simplifies administration while maintaining diversification benefits.

3. Early Access to High-Potential Ventures

Venture studios are involved from day one, giving investors access to startups at pre-seed and seed stages, often before traditional VC funds would typically engage. This early exposure can enhance potential returns and strategic influence.

4. Alignment of Incentives

Studio teams hold equity in the startups they help build, aligning incentives with both founders and investors. Every stakeholder benefits from successful execution, reducing the misalignment that can occur in traditional funding structures.

Case Examples from MENA

Several venture studios in MENA are demonstrating the portfolio advantage:

• Enhance Ventures (UAE): Builds multiple digital-first ventures simultaneously, from fintech to consumer tech, providing investors exposure to a broad spectrum of opportunities.

• Astrolabs (Saudi Arabia): Combines incubation, corporate partnerships, and venture building to create a diversified venture pipeline across tech sectors.

• Modus Capital (Egypt/UAE): Offers investors a hybrid approach, combining studio-built ventures with managed seed-stage investments, effectively blending portfolio depth with operational oversight.

These examples show that studios are more than idea factories, they are strategic platforms for diversified exposure, designed to reduce risk and increase scalability for investors.

Measuring Success: Financial and Beyond

While financial returns remain critical, the studio model also provides measurable non-financial value:

• Job Creation: Multiple ventures generate employment opportunities across sectors and markets.

• Ecosystem Development: Studios strengthen the entrepreneurial ecosystem by training founders and operators who may later launch independent startups.

• Strategic Alignment: Ventures often align with government diversification goals or corporate innovation strategies, enhancing their sustainability and adoption.

For investors, these metrics represent additional layers of risk mitigation and impact, reinforcing the portfolio advantage beyond pure financial metrics.

Final Thought: A Smarter Way to Invest in MENA

The MENA venture studio model offers a unique, portfolio-first approach to investing in emerging markets. By systematically creating multiple ventures under one operational umbrella, studios reduce execution risk, increase operational efficiency, and provide investors with diversified exposure to high-potential startups.

In a region defined by rapid transformation and ambitious national visions, venture studios are not just building startups, they are building portfolios, capabilities, and ecosystems simultaneously.

For LPs and institutional investors, the message is clear: the next frontier of smart, diversified early-stage investing in MENA is not about betting on a single idea. It’s about betting on the system that builds the ideas, and managing risk while scaling opportunity.

The Founder’s Dilemma: Building with a Venture Studio vs. Going It Alone in the MENA Region

Across the Middle East and North Africa (MENA), entrepreneurship is booming. Young innovators are transforming industries, governments are investing heavily in digital economies, and capital is increasingly flowing into startups. Yet for founders, one critical question remains:
Should I build my startup independently, or partner with a venture studio?

This choice, often called the founder’s dilemma, can define the trajectory of a startup. Both paths have the potential to lead to success, but they differ significantly in resources, control, and risk. As MENA’s innovation ecosystem matures, understanding these differences is more important than ever.

Understanding the Venture Studio Model

A venture studio is not just an investor; it’s a company that creates startups from scratch. Unlike venture capital firms that fund existing founders, studios generate business ideas internally, test them, and assemble teams to build them. 

They provide everything a startup needs in its early stages:

• Market research and ideation

• Product design and engineering

• Branding and go-to-market strategy

• Legal and financial setup

• Access to investors and partners

In return, venture studios typically retain a significant equity stake in the startup. For founders, joining a studio often means sharing ownership for shared success.

Going It Alone: The Independent Founder’s Journey

Building a startup independently is the traditional path, one that offers complete autonomy. Founders have full control over the vision, direction, and equity. However, this freedom comes with challenges, especially in MENA’s still-evolving startup ecosystem.

Independent founders often face:

• Limited access to capital and investors

• Gaps in technical or operational expertise

• Difficulty navigating local regulations and markets

• Longer timeframes to validate and scale an idea

While independence allows founders to move according to their instincts, it also exposes them to higher risks and slower progress,  especially without strong networks or experience.

The Venture Studio Advantage: Shared Strengths, Lower Risk

For many aspiring entrepreneurs, venture studios provide a compelling alternative to starting alone. They reduce uncertainty by combining capital, talent, and infrastructure within a single ecosystem.

Here’s how studios reshape the founder journey in MENA:

1. Access to Immediate Resources

Founders who join venture studios don’t start from zero. They inherit a support system that includes designers, developers, marketers, and financial experts. This enables them to transition from idea to launch in months rather than years.

2. Faster Validation and Market Entry

Studios rely on data-driven validation processes, testing product-market fit early and eliminating weak ideas quickly. In the MENA region, where consumer behavior varies significantly between markets such as the UAE, Egypt, and Saudi Arabia, this disciplined approach is invaluable.

3. Reduced Financial Pressure

Most studios fund the initial stages of development, meaning founders can focus on execution rather than fundraising. This stability attracts skilled professionals who might otherwise hesitate to join early-stage ventures.

4. Mentorship and Strategic Guidance

Venture studios are built by experienced operators, entrepreneurs, investors, and corporate leaders who have scaled startups before. Their mentorship helps new founders avoid common pitfalls, navigate regulations, and build scalable models from day one.

The Trade-Off: Equity vs. Autonomy

The primary consideration for founders is ownership. Venture studios typically retain between 30% to 60% equity in the startups they help create. While this may seem high, it’s important to remember that the founder is gaining access to millions of dollars’ worth of expertise, networks, and infrastructure.

Independent founders keep all their equity, but they also bear all the risk. Without capital or guidance, many early-stage ideas fail before reaching market traction.

The key question becomes:

“Do I prefer to own 100% of a small idea, or 40% of a big one with higher chances of success?”

How the MENA Context Shapes the Choice

MENA’s entrepreneurial landscape is unique. The region combines strong government support with fast-evolving private capital, but challenges remain, including fragmented markets, regulatory complexity, and a shortage of experienced startup talent.

That’s why the venture studio model is gaining momentum. Studios such as Enhance Ventures, Astrolabs, and Modus Capital have proven that this model can bridge gaps in knowledge, funding, and speed.

At the same time, the independent route still holds strong appeal for experienced entrepreneurs who already have market insight, technical skills, and access to investors.

In short:

• First-time founders or those with limited networks often thrive in a venture studio environment.

• Seasoned entrepreneurs may prefer the independence and full ownership that comes with building solo.

Hybrid Paths: The Future of Founding in MENA

Interestingly, new hybrid models are emerging across MENA. Some studios allow founders to bring their own ideas and co-build them using the studio’s resources, while retaining more equity. Others act as accelerators with shared ownership and operational support.

This flexibility reflects the maturing of the region’s ecosystem, where collaboration is replacing competition as the key to innovation.

Final Thought: Choosing the Right Path

The founder’s dilemma is not about right or wrong; it’s about fit.
Building with a venture studio offers structure, speed, and reduced risk,  ideal for founders seeking support and guidance. Going it alone offers independence and complete control,  ideal for those ready to navigate uncertainty with confidence.

In the end, success in MENA’s startup landscape depends less on how you start, and more on how strategically you build, validate, and grow.

Whether you choose to collaborate with a venture studio or chart your own course, the region’s entrepreneurial future holds immense promise,  for those bold enough to take the first step.

De-risking Discovery: Why LPs Are Flocking to MENA’s Venture Studio Model

In recent years, the Middle East and North Africa (MENA) region has captured the attention of global investors. With record-breaking startup funding rounds, bold national innovation strategies, and an increasingly tech-savvy population, MENA is rapidly emerging as one of the world’s most promising frontiers for venture investment.

But while traditional venture capital (VC) continues to dominate headlines, a quieter revolution is unfolding, one that’s fundamentally changing how early-stage innovation is financed and built.

Limited Partners (LPs) — the institutional and private investors who fund venture capital firms,  are beginning to shift their attention to a new structure: the venture studio model.

Why? Because it offers something traditional VC often can’t: a systematic way to de-risk early-stage discovery while increasing the chances of creating successful, scalable startups.

The Problem with Traditional Venture Capital

Traditional venture capital thrives on risk, but that risk comes with inefficiencies. Across global markets, the average VC fund invests in 20–30 startups, expecting that only a handful will deliver strong returns. The rest either underperform or fail entirely.

This “spray and pray” model works in mature ecosystems like Silicon Valley, where the sheer density of experienced founders and operators increases the odds of success. But in emerging ecosystems like MENA, where entrepreneurial experience and deep operational talent are still developing, that level of risk can be harder to absorb.

For LPs, this means:

• Longer time horizons before exits or measurable returns.

• Higher failure rates among early-stage portfolio companies.

• visibility into how startups are actually built or supported post-investment.

Venture studios offer a compelling alternative: they build startups in-house, using shared resources, validated ideas, and repeatable systems. The result is a model where discovery, the riskiest stage of venture creation, is not left to chance, but managed like a disciplined process.

What Makes Venture Studios Different

A venture studio is not just a fund or an accelerator. It’s a startup factory, an operational platform that ideates, validates, and launches new ventures internally.

Instead of waiting for founders to approach with pitches, studios:

1. Generate ideas based on market gaps and data insights.

2. Test and validate those ideas through structured experimentation.

3. Assemble teams of founders and operators.

4. Provide capital, infrastructure, and mentorship to scale.

Because of this end-to-end involvement, studios can control quality, reduce risk, and accelerate growth far more efficiently than the traditional VC approach.

For LPs, that means better use of capital, shorter paths to traction, and a portfolio of startups with stronger operational DNA.

Why LPs Are Paying Attention

1. Lower Risk, Higher Control

In a typical VC setup, LPs rely heavily on fund managers to pick the right startups, and hope those founders can execute. In a studio model, the process is more structured.

Each new startup is born inside a tested operational framework, meaning it benefits from shared infrastructure, experienced leadership, and pre-validated business models.

This not only reduces risk but also gives LPs greater transparency into how value is being created. Studios produce measurable data on ideation success rates, time to product-market fit, and capital efficiency,  offering LPs a clearer picture of where their money is going.

2. Institutionalized Venture Building

Venture studios operate more like companies than investment funds. They have permanent teams of operators, strategists, designers, and engineers , all dedicated to turning ideas into sustainable businesses.

This “industrialization of entrepreneurship” is especially appealing to LPs seeking predictable performance.

Instead of betting on hundreds of untested founders, LPs invest in a repeatable venture production process, one capable of generating multiple high-quality startups over the fund’s lifecycle.

3. Portfolio Diversification by Design

Each venture studio typically builds multiple startups across various verticals, leveraging common infrastructure and learnings.

For LPs, this means diversification is built into the model. A single investment in one studio can expose them to 10–20 ventures, each with a lower cost of failure and faster validation cycles.

Moreover, many studios focus on sectors strategically aligned with MENA’s economic visions, such as fintech, healthtech, logistics, and sustainability,  creating alignment with national development goals and corporate partnerships.

4. Early Access and Value Creation

Because venture studios are involved from day zero, LPs effectively gain access to pre-seed and seed-stage value creation, long before traditional VC funds would typically invest.

In other words, LPs in studio models aren’t just financing growth,  they’re financing creation. This early involvement allows them to capture more upside from successful exits, while maintaining oversight over governance and capital deployment.

5. Alignment of Incentives

Perhaps most importantly, venture studios align incentives across all stakeholders — founders, operators, fund managers, and LPs.

Unlike accelerators, which profit mainly from program fees or short-term equity stakes, studios are deeply invested in long-term outcomes. Their teams hold equity in the startups they help build, ensuring that everyone’s success depends on sustainable execution, not short-term valuations.

For LPs, this alignment fosters confidence. When a studio team is building alongside its founders, the risk of mismanagement or overvaluation decreases dramatically.

The MENA Context: Perfect Conditions for Studio Success

MENA’s market dynamics make it a uniquely fertile ground for venture studios and their LP backers:

• Government-driven innovation agendas (e.g., Saudi Vision 2030, UAE’s Entrepreneurial Nation) create demand for structured startup creation.

• A surge of untapped sectors — from logistics to agritech,  provides abundant whitespace for venture discovery.

• Growing pools of regional capital are seeking diversification beyond real estate and oil-linked industries.

• Talent migration and repatriation are fueling a new generation of skilled founders and operators.

Together, these factors make the MENA venture studio model a strategic bridge between government-backed innovation goals, private sector growth, and LP capital seeking sustainable returns.

Case in Point: Studios as Investment Platforms

Forward-thinking studios like Modus Capital, Enhance Ventures, and Astrolabs are already proving this thesis. Their ability to repeatedly create investable, de-risked startups has attracted both regional sovereign funds and global institutional LPs.

Some have even structured hybrid models, blending venture building with fund management,to allow LPs to invest in both the studio itself and the portfolio ventures.

This model offers dual exposure: equity in the ventures plus returns from the studio’s operational growth, effectively giving LPs more ways to win.

Spotting Success: How MENA Venture Studios Identify and Validate Startup Ideas

The Middle East and North Africa (MENA) region is rapidly becoming one of the world’s most dynamic frontiers for entrepreneurship. Over the past decade, governments, investors, and innovators have been working together to diversify economies, digitize industries, and empower a new generation of founders.

Amid this transformation, venture studios have emerged as a driving force. Unlike traditional venture capital firms that invest in existing startups, venture studios create startups from the ground up, developing ideas internally, testing them rigorously, and building teams around those that prove most promising.

But the real magic lies in how these studios identify and validate ideas with genuine potential. In a region as diverse and fast-changing as MENA, spotting the right opportunity requires a blend of creativity, data, and deep market understanding.

From Concept to Company: The Venture Studio Framework

The success of a venture studio depends on its ability to transform insights into investable businesses. This process follows a disciplined framework that moves from broad market exploration to focused validation and execution.

The four core stages are:

1. Opportunity Scanning

2. Idea Generation and Selection

3. Market Validation

4. Prototyping and Testing

Each stage ensures that only ideas with proven demand and scalable potential move forward.

1. Opportunity Scanning: Discovering the Gaps That Matter

MENA’s economies are evolving rapidly,  moving beyond oil dependency and embracing digital transformation. This shift is creating new gaps in critical sectors such as fintech, logistics, healthtech, agritech, and renewable energy.

Top venture studios begin by identifying these gaps. They analyze macroeconomic trends, policy shifts like Saudi Vision 2030 or the UAE’s Centennial 2071, and consumer behavior to uncover unmet needs.

For example:

• In markets with limited banking access, studios explore fintech solutions for mobile payments and microcredit.

• In countries facing food security challenges, they investigate agritech models that improve production and distribution.

This stage is not about chasing trends; it’s about understanding where innovation meets necessity.

2. Idea Generation: Turning Insights into Business Concepts

Once opportunity areas are defined, venture studios organize structured ideation sessions that bring together cross-functional teams, strategists, engineers, designers, and entrepreneurs.

Their goal is to translate real-world problems into business opportunities. To filter viable ideas, they ask:

• Is this a significant and scalable problem?

• Does it align with market realities and regulations?

• Can it expand across different MENA markets?

• What value proposition makes it stand out?

The outcome is a shortlist of potential ventures, each supported by data and a clear hypothesis of how the business will create impact and profit.

3. Market Validation: Testing Assumptions Before Building

Validation is the most crucial step, and it is where most traditional startups stumble. MENA venture studios take a scientific approach to ensure their ideas are backed by evidence, not optimism.

They test each concept through a mix of:

• Customer interviews and surveys to gauge real demand.

• Landing pages or social media campaigns to track interest and engagement.

• Minimum Viable Products (MVPs) or prototypes to test usability and pricing.

• Pilot partnerships with corporates, governments, or NGOs to prove feasibility.

This stage is fast-paced but data-driven. If the market signals are strong, the idea moves forward; if not, it is refined or discarded. The focus is on learning quickly and cheaply, turning insights into informed decisions.

4. Prototyping and Testing: Building with Precision

Once validation confirms a market fit, the studio’s operational team, including product designers, engineers, and growth specialists,  begins building a prototype.

Unlike independent startups that often struggle to find resources, venture studios already have internal teams and shared infrastructure. This enables rapid product development with high technical and creative quality.

The process emphasizes agility: building, testing, learning, and iterating until the product is ready for full launch. This disciplined experimentation allows studios to scale ventures faster and with lower risk.

Local Insight Meets Global Discipline

The MENA region’s diversity,  from the Gulf’s advanced economies to North Africa’s emerging markets, means that what succeeds in one country may not in another.

That’s why top venture studios combine global venture-building methods with local market intelligence. They rely on:

• Data analytics to identify patterns in consumer demand.

• Local partnerships to navigate regulation and distribution.

• Regional experts to ensure cultural alignment and trust.

This blend of data and context allows MENA studios to design ventures that are not only innovative but also grounded in reality.

Leaders in Venture Validation Across MENA

Several studios have become regional role models for their disciplined approach to identifying and validating ideas:

• Enhance Ventures (UAE): Specializes in digital platforms, focusing on robust market testing before scaling.

• Astrolabs (Saudi Arabia): Integrates venture building with ecosystem development and corporate innovation.

• Flat6Labs (Egypt and Bahrain): Leverages its founder network and accelerator experience to validate ideas rapidly.

• Nuwa Capital (UAE): Combines investment and operational expertise to ensure each venture aligns with long-term market trends.

These studios demonstrate that success in venture building is not about luck; it’s about structure, process, and precision.

Final Thought

The Art and Science of Spotting Success

The venture studio model is redefining how startups are built in MENA. By combining creativity with rigorous validation, studios ensure that every business they launch is founded on a solid evidence-based foundation, not assumptions.

In a region eager to diversify its economy and empower youth-led innovation, venture studios are doing more than just creating companies; they are fostering confidence in the entrepreneurial process itself.

By spotting success early and validating ideas systematically, MENA’s top venture studios are proving that innovation is not a gamble,  it’s a strategy.

Beyond Capital: The Operational Engine of MENA’s Top Venture Studios

The Middle East and North Africa (MENA) region is rapidly emerging as one of the most exciting frontiers for innovation and entrepreneurship. In the past decade, the startup ecosystem has expanded at record speed, from fintech and e-commerce to healthtech and edtech. But behind this growth lies a new breed of organization quietly redefining how startups are born and scaled: venture studios.

While traditional venture capital firms focus primarily on funding startups, venture studios go beyond capital. They provide the operational muscle, strategic guidance, and hands-on support that early-stage founders desperately need. In essence, venture studios are not just investors — they are co-creators.

What Makes a Venture Studio Different

A venture studio (also known as a startup studio or company builder) doesn’t wait for external founders to pitch ideas. Instead, it generates startup ideas internally, validates them through market testing, and builds teams to execute those ideas. This model ensures that every startup launched from a studio is based on solid research, tested assumptions, and scalable business models.

Unlike accelerators or incubators, which provide short-term mentorship and funding, venture studios stay deeply involved in the startup’s journey, often from conception to Series A and beyond. The value they bring lies not only in money but also in expertise, infrastructure, and execution capability.

The Operational Engine: The True Power of Venture Studios

The real strength of a venture studio lies in its operational engine, a system of shared resources, specialized teams, and repeatable processes that allow multiple startups to be built efficiently at once.

Here’s how this engine works:

1. Idea Generation and Market Validation
   Studios continuously scan the market for pain points and emerging opportunities. Teams of analysts, strategists, and entrepreneurs brainstorm solutions, then test them through surveys, prototypes, or pilot programs. Only the strongest ideas move forward,  reducing the risk of failure early on.

2. Building Founding Teams
   Once an idea is validated, the studio recruits the right founders or co-founders to lead it. These are often experienced operators or young entrepreneurs with passion and domain expertise. The studio provides them with immediate access to design, tech, marketing, and legal support, allowing them to focus on building the product and scaling fast.

3. Shared Services and Infrastructure
   One of the biggest advantages of a studio model is efficiency. Instead of every startup hiring its own designer, accountant, or HR manager, the studio provides these as shared resources. This reduces costs and speeds up growth,  a crucial advantage in emerging markets like MENA.

4. Data-Driven Decision Making
   Venture studios rely heavily on data analytics to track performance, refine business models, and allocate resources effectively. This operational discipline ensures that each venture is built on measurable outcomes, not just intuition.

5. Capital Efficiency
   Because of their hands-on approach, studios can build startups with less capital but higher success rates. Their involvement in every operational detail , from product design to fundraising,  ensures each dollar spent delivers value.

How MENA’s Top Venture Studios Are Applying This Model

Across the region, leading venture studios are adapting this model to local realities, blending global best practices with MENA’s unique economic and cultural landscape.

Enhance Ventures (UAE)

Enhance Ventures focuses on creating digital platforms and consumer tech startups. Its operational engine emphasizes rapid prototyping and cross-market scalability. The studio’s team of experts handles everything from brand design to investor relations, enabling founders to concentrate on growth.

Astrolabs (Saudi Arabia)

Astrolabs combines venture building with ecosystem development. Beyond building startups, it trains entrepreneurs and helps corporates innovate. Its “operational engine” includes coworking spaces, startup bootcamps, and government partnerships, giving its portfolio companies a strong launchpad in the Saudi market.

Nuwa Capital (UAE)

Nuwa Capital integrates venture studio functions with investment capabilities. Its value-add goes beyond funding, providing portfolio companies with strategic marketing, product, and technology support through a hands-on operational team.

Flat6Labs (Egypt and Bahrain)

Originally an accelerator, Flat6Labs has evolved into a hybrid model that includes venture building. Its shared resources,  from mentorship to product development support,  have helped launch over 300 startups across MENA.

Why This Model Works So Well in MENA

The MENA region has unique challenges,  from fragmented markets to varying regulations and limited access to experienced founders. Venture studios help overcome these by centralizing expertise and de-risking entrepreneurship.

Here’s why the model fits perfectly:

• Talent Gaps: Studios provide access to skilled teams in tech, marketing, and finance, areas where local talent may still be developing.

• Early-Stage Funding Scarcity: Studios invest operational support and seed capital directly, reducing dependence on external investors in the earliest stages.

• Local Insights: Many MENA studios are founded by locals who deeply understand market needs, giving their startups a competitive edge.

• Scalability: Studios design ventures to expand across multiple countries in the region, not just one national market.

Beyond Capital: Building Sustainable Value

The true value of MENA’s venture studios is not in the money they invest,  it’s in the systems they build. By offering structured support, access to networks, and shared knowledge, they are building founder factories, environments where startups can thrive faster and smarter.

As these studios continue to mature, they will become pillars of the regional economy, not just producing successful companies, but also nurturing future founders, investors, and operators who will fuel the next wave of innovation.

Final Thought

Venture capital alone cannot build an ecosystem, but venture studios can. They combine capital, creativity, and capability in one powerful model. In MENA, where entrepreneurship is still finding its footing, this approach offers the most practical path to sustainable startup success.

By going beyond capital and investing deeply in operations, execution, and people, MENA’s top venture studios are not just funding the future, they’re building it.

How Venture Studios are Building the Future of MENA's Economy

In recent years, the Middle East and North Africa (MENA) region has experienced a remarkable transformation in its entrepreneurial landscape. What was once seen as a market dependent on oil and traditional industries is now becoming a dynamic hub for startups, digital innovation, and technological advancement. At the heart of this shift lies a powerful new model for building companies, the venture studio.

What Is a Venture Studio?

A venture studio (also known as a startup studio, venture builder, or company builder) is an organization that creates and launches startups from scratch. Unlike accelerators or incubators, which support existing startups, venture studios develop ideas internally, test them, and then build teams around the most promising ones. They provide operational support, funding, shared resources, and experienced leadership to help new ventures scale faster.

Essentially, venture studios act as co-founders, providing not only capital but also strategy, technology, design, marketing, and legal expertise. This integrated approach reduces startup failure rates and creates a pipeline of well-tested, scalable businesses.

The Rise of Venture Studios in MENA

Over the past five years, MENA has witnessed a growing wave of venture studios emerging in key markets like the United Arab Emirates, Saudi Arabia, Egypt, and Bahrain. Governments and investors have realized that the traditional venture capital model, though effective, is not enough to build sustainable ecosystems in markets that are still developing their entrepreneurial infrastructure.

Venture studios bridge this gap by turning local challenges into scalable business opportunities. They combine local market knowledge with global startup-building practices, helping founders focus on solving real regional problems, from financial inclusion and logistics to climate resilience and education technology.

Why the Venture Studio Model Fits the MENA Context

1. Access to Talent and Resources
   Many early-stage founders in MENA face gaps in technical or business expertise. Venture studios fill this void by providing access to multidisciplinary teams of experts, from developers to growth strategists,  allowing founders to focus on execution rather than searching for co-founders or funding.

2. Lower Failure Rate
   Globally, over 90% of startups fail. Venture studios significantly reduce this risk by validating ideas early, testing prototypes, and ensuring product–market fit before scaling. This structured approach has proven particularly effective in emerging ecosystems where access to venture capital is still growing.

3. Alignment with Vision 2030 Goals
   In Saudi Arabia and across the Gulf, national agendas like Vision 2030 aim to diversify economies, empower youth, and foster innovation. Venture studios directly contribute to these goals by creating jobs, attracting foreign investment, and building local tech capacity.

4. Attracting Global Investors
   International venture funds increasingly see MENA as a high-potential region. Studios serve as reliable entry points for investors because they provide deal flow from professionally built, well-governed startups with lower risk and higher scalability.

Leading Venture Studios in the Region

Several notable venture studios are shaping the MENA startup ecosystem:

• Enhance Ventures (UAE): Focused on digital platforms and marketplaces.

• VentureSouq (Saudi Arabia & UAE: Combines a hybrid model of studio and venture fund.

• Nuwa Capital (UAE): Supports early-stage tech ventures through operational expertise.

• Astrolabs (KSA): Blends entrepreneurship education, co-building, and corporate innovation.

• TechGenies and Flat6Labs (Egypt): Create and scale startups across Africa and MENA.

These studios are not only generating successful startups but also training a new generation of founders capable of scaling businesses across borders.

Challenges on the Horizon

Despite the momentum, venture studios in MENA face some challenges:

• Regulatory Complexity: Different legal frameworks across MENA countries can slow down company registration and investment processes.

• Talent Retention: Competition for skilled tech talent remains high, especially in emerging markets.

• Funding Gaps: Early-stage funding is improving but still limited compared to Western ecosystems.

However, many of these barriers are being addressed through new innovation-friendly policies, startup-friendly visa programs, and cross-border partnerships.

The Road Ahead

The next decade promises exponential growth for venture studios in MENA. As governments continue to invest in digital infrastructure and entrepreneurship programs, venture studios will play a pivotal role in transforming economies from oil-driven to innovation-driven.

By systematically building startups that tackle real social and economic challenges, from fintech and healthtech to agrotech and cleantech,  venture studios are laying the foundation for a more resilient, diversified, and knowledge-based economy.

Final Thought

Venture studios represent more than just a trend; they are the blueprint for MENA’s innovation future. They combine creativity, technology, and investment discipline to turn bold ideas into sustainable companies. As the region embraces this model, we can expect to see not only more unicorns but also a deeper culture of entrepreneurship that will shape the MENA economy for generations to come.

Le rôle des Venture Studios dans la création de licornes

L’écosystème mondial de l’innovation est en pleine mutation. Alors que les cycles de financement se resserrent et que les investisseurs deviennent plus sélectifs, une nouvelle approche de la création d’entreprises attire l’attention : les Venture Studios. Ces structures hybrides, à la fois créatrices, investisseurs et partenaires opérationnels, ne se contentent pas de lancer des startups. Leur ambition est plus grande : construire, méthodiquement, les futures licornes.

Le mot « licorne » reste chargé de symboles dans le monde des affaires. Une valorisation d’un milliard de dollars est autant une reconnaissance qu’un passage à une autre dimension. Mais atteindre ce stade est rare : moins de 1 % des startups y parviennent. Alors, pourquoi les Venture Studios semblent-ils mieux armés pour en produire davantage ?

Les chiffres parlent d’eux-mêmes

Ces dernières années, les données commencent à confirmer ce que beaucoup pressentaient. Selon un rapport du Global Startup Studio Network (GSSN), près de 84 % des startups issues de studios parviennent à lever un premier tour de table, contre environ 42 % pour les startups traditionnelles. Plus frappant encore, 72 % de ces jeunes pousses atteignent une série A, un seuil crucial vers l’hypercroissance.

Ces statistiques ne sont pas abstraites. Elles montrent que les Venture Studios offrent un terrain plus fertile pour transformer une idée en entreprise durable, et, par extension, pour maximiser les chances d’atteindre le statut de licorne.

Des licornes construites plutôt que découvertes

Historiquement, la plupart des licornes sont nées de la persévérance d’un ou deux fondateurs visionnaires, souvent isolés au départ. Mais cette trajectoire romantique, presque mythique, n’est pas la seule voie. Les Venture Studios industrialisent le processus entrepreneurial. Ils identifient des tendances de marché, valident des hypothèses rapidement, puis mobilisent des équipes et des financements pour exécuter.

L’exemple le plus éclatant est celui de Flagship Pioneering, le studio basé à Boston qui a donné naissance à Moderna. Lorsque la biotech a révolutionné la vaccination avec son vaccin à ARN messager, ce n’était pas le fruit du hasard. Flagship avait travaillé méthodiquement sur la technologie pendant des années, en lançant plusieurs projets parallèles avant de converger vers ce qui allait devenir une licorne mondiale.

En Europe, Hexa (anciennement eFounders) illustre également ce modèle. Depuis sa création, ce studio parisien a donné naissance à plus de 40 startups dans le SaaS, dont plusieurs dépassent déjà le milliard de dollars en valorisation, comme Front ou Aircall. Leur secret : un processus répétable qui combine créativité, capital et expertise opérationnelle dès le jour zéro.

Un modèle qui réduit les risques

Créer une startup, c’est souvent faire face à des probabilités écrasantes d’échec. On estime que près de 90 % des jeunes entreprises disparaissent dans les cinq premières années. Les Venture Studios changent cette équation en réduisant les incertitudes à chaque étape.

Dès la phase d’idéation, ils testent plusieurs hypothèses en parallèle, ce qui augmente les chances de tomber sur une opportunité massive. Ensuite, ils mobilisent des équipes pluridisciplinaires déjà en place, évitant à la startup de perdre du temps dans la recherche de compétences rares. Enfin, ils apportent un financement initial qui donne aux fondateurs la liberté de se concentrer sur le produit et le marché, plutôt que sur la recherche permanente de capitaux.

Ce processus structuré explique pourquoi les startups issues de studios ont un taux de survie plus élevé et, surtout, une trajectoire de croissance plus rapide. Moins de temps perdu, moins d’erreurs fatales, plus de chances d’atteindre le milliard.

L’avantage de la vitesse

Dans un monde où les marchés évoluent vite, la rapidité est une arme. Les Venture Studios, grâce à leurs ressources partagées et à leur expérience accumulée, permettent de passer de l’idée au produit en quelques mois, là où une startup traditionnelle peut mettre un an ou plus.

Cette vitesse est décisive dans la course aux licornes. Prenons l’exemple de Rocket Internet, un des pionniers européens du Venture Building. Bien que controversé, ce studio allemand a démontré l’importance de l’exécution rapide en répliquant des modèles à succès et en les propulsant sur de nouveaux marchés avant la concurrence. Plusieurs de ses créations, comme Zalando ou Lazada, ont atteint des valorisations de licorne grâce à cette obsession de la vitesse et de l’expansion.

L’effet portefeuille

Un autre facteur qui explique le rôle des Venture Studios dans la création de licornes est leur logique de portefeuille. Là où un fondateur indépendant joue sa carrière entière sur une seule idée, un studio multiplie les paris.

Cette diversification n’est pas seulement financière, elle est aussi méthodologique. Les leçons tirées d’un projet avorté servent immédiatement aux suivants. Chaque échec devient une ressource, chaque succès une preuve que le modèle fonctionne.

En multipliant les lancements, les studios augmentent statistiquement leurs chances de voir émerger des entreprises capables d’atteindre le milliard. Et lorsqu’une de leurs startups décolle, le studio bénéficie directement de cette valorisation grâce à sa part significative au capital.

Les investisseurs ne s’y trompent pas

Les chiffres et les cas d’étude ont convaincu les investisseurs institutionnels de plus en plus frileux. Pour eux, les Venture Studios représentent une forme d’investissement plus disciplinée, où le risque est réduit et le potentiel de rendement amplifié.

Un rapport de McKinsey souligne que les startups issues de studios génèrent en moyenne douze fois plus de revenus après cinq ans que celles issues de parcours traditionnels. Cet écart colossal explique pourquoi de grands fonds de capital-risque commencent à s’associer avec des studios plutôt que de les considérer comme des concurrents.

Vers une nouvelle génération de licornes

Si les licornes d’hier ont souvent été façonnées par des fondateurs visionnaires et charismatiques, celles de demain pourraient bien être construites au sein de Venture Studios. Non pas parce que la créativité individuelle disparaît, mais parce que l’innovation devient trop complexe et trop rapide pour être laissée au hasard.

Les Venture Studios offrent une plateforme où l’intuition des fondateurs rencontre la rigueur des processus, où la passion entrepreneuriale se nourrit de capital, de talents et de méthodologies éprouvées. Dans cet environnement, les idées les plus prometteuses ont plus de chances de se transformer en géants mondiaux.

Le prochain chapitre

Le rôle des Venture Studios dans la création de licornes est déjà tangible, et il ne fera que croître. À mesure que les cycles de financement se contractent et que les marchés deviennent plus exigeants, les investisseurs chercheront des modèles capables de produire des entreprises solides, rapidement et à grande échelle. Les studios, avec leur approche structurée et leur logique industrielle, sont parfaitement positionnés pour répondre à cette demande.

Dans la prochaine décennie, nous verrons sans doute une distinction claire entre deux types de licornes : celles nées du hasard et celles construites par design. Et les Venture Studios, loin d’être de simples laboratoires d’idées, deviendront les architectes d’une nouvelle génération d’entreprises mondiales.

Why Venture Studios Are Attracting More Investors in 2025

Investors used to bet on founders’ ideas. But in 2025, many are shifting strategy: they’re investing in venture studios - organizations that build companies in-house, from problem-identification to founding teams to operational muscle. In a world where uncertainty rules, venture studios offer not just upside, but a clearer path through risk.

Here’s how venture studios are drawing in more investor interest this year, grounded in data and real examples.

Momentum You Can Measure

The interest in venture studios isn’t just hype. According to the Global Startup Studio Network (GSSN), startups born inside studios have about 30% higher success rates than those founded traditionally. From idea to Series A, the timelines are dramatically compressed: studio-born ventures take around 25.2 months to reach Series A, while conventional startups take about 56 months.

Seed funding is far more accessible through studios: approximately 84% of studio-born companies raise a seed round, compared to much lower rates for startups outside that model. And of those, 72% go on to secure Series A funding. By contrast, traditional startup paths hover around 42% for making it to Series A.

Hexa’s Low Failure Rate & Practical Startup Support

Hexa, a Paris-based venture studio, is a live example of why investors are paying attention. Hexa typically launches four to five startups per year. For each project, they invest roughly €800,000 in the early stages - this covers recruiting a co-founder team (CEO + CTO generally), putting together a small team of 10-15 employees, and building the first version of the product.

What’s notable is Hexa’s failure rate: around 6%. That is, only about 6% of its studio projects fail outright. The rest either continue to operate or move toward exit. That is well below the often-cited norm for startup survival (many startups fail at higher rates, often estimated at 10-20% within a few years).

Also, Hexa takes about 30% equity in each of its projects, giving the studio skin in the game. Once a startup spins out of Hexa (usually after ~18 months), it moves toward independent growth and subsequent investor rounds.

What Makes Studios Attractive to Investors

The numbers and case studies point toward several intertwined reasons why studios are drawing interest.

First, studios help de-risk early stages. Because studios run internal validations - market research, prototyping, testing - they reduce the chance of launching a product nobody wants. Investors often cite this validation as a major benefit.

Second, the talent risk is lowered. Studios like Hexa recruit leadership teams (CEO, CTO) early. They build supportive infrastructure (legal, design, accounting). Founders don’t have to bootstrap every role or function themselves. That matters: many startups fail not because the idea is weak, but because execution or team infrastructure is weak.

Third, studios tend to retain larger equity stakes, which means when success comes, returns are amplified. That alignment of incentives - studio, founders, investors - is powerful.

Fourth, studies like those from GSSN show the IRR (internal rate of return) for studio-born companies tends to be far higher - around 53% - than for conventional startups (which may average ~21-22%).

Examples Beyond Hexa

Atomic (San Francisco) is another studio that’s attracted heavy investor attention. Jack Abraham, its founder, once described Atomic’s approach as ideation + prototype + validation + funding - all internal. In 2021, Atomic raised US$260 million for its fund that builds startups. The fact that institutional or large investors are willing to commit this kind of capital to a studio model suggests confidence: they believe studio-built companies are more stable bets.

Other studios - Flagship Pioneering for biotech (Moderna is one of its signature spin-outs), Science Inc., eFounders - also serve as proof points. These studios have repeatedly launched companies that reach very high valuations or perform well in exits, not simply small wins. The common thread: strong domain knowledge, founder support, resource pooling, and long-term alignment.

Funding Realities & What Investors Want to See

Even as venture studios rise, investors are getting more selective about which ones they back. They look for studios that:

• Have a clear thesis and focus (industry, technology, geography).

• Demonstrate rigorous idea validation before spinning out.

• Maintain support beyond just the founding moment (infrastructure, mentoring, follow-on capital).

• Show evidence of past success - low failure rates, exits or scaling companies, good IRR etc.

Investors are also sensitive to the capital cost of running a studio (staff, infrastructure) and how that overhead is balanced by returns from successful spin-outs.

Why 2025 Seems Pivotal

Several market shifts make 2025 a turning point for studios. The venture market is less forgiving of inefficiency. Valuations are more conservative. Founders are more cautious, but also more collaborative. Studios look like a model that absorbs these pressures: faster path to funding, shared overheads, stronger operational support.

LPs (limited partners) are increasingly interested in not just what is being built, but how. If you’re going to place a large bet, you prefer predictability, lower risk, and a model that gives you more influence over the conditions that matter - team strength, product-market fit, execution discipline. Studios deliver on many of those.

Hexa’s recent financing is also a signal. In March 2025, Hexa closed a €29 million financing agreement structured as a revolving credit facility, aimed at ensuring regular liquidity to support its expansion - launching more startups, growing internal team, building long-term capacity. That kind of financial backing from banks shows institutional confidence in the model.

Looking Ahead: The Studio Model’s Growing Role

If the trends hold, studios will move from being exciting alternative models to being core infrastructure in many ecosystems. We may see generalist VCs building studio arms, governments sponsoring studio hubs, more founders choosing to launch inside studios rather than from zero alone.

For investors, this means studio portfolios will feature more predictable outcomes, stronger early metrics, and potentially higher returns per dollar invested. For founders, it means less of the chaos of starting with nothing, and more of building with safety nets - expertise, funding, structure - while remaining creative and ambitious.

The Next Chapter

Venture studios are not just catching eyes - they’re delivering. In 2025, when investors evaluate risk more carefully, the studio model often wins: it compresses timelines, reduces failure risk, aligns incentives, and produces meaningful exits.

For those watching capital flows, this shift matters: the studios that perfect this model - balancing discipline with innovation - will likely be among the defining organizations in the startup ecosystems of the next decade.

The Rise of Thematic Venture Capital Funds: Climate, Deep Tech, and Impact

Venture capital is changing shape. For decades, generalist funds dominated the landscape, chasing outsized returns across consumer, fintech, and SaaS. But as the market adjusts after pandemic highs, a new type of investor is stepping into the spotlight: thematic venture capital funds. These funds concentrate on specific areas like climate, deep tech, and impact. They are not merely chasing a trend - they are reshaping how capital meets purpose, with measurable results that suggest they are here to stay.

A Market Holding Its Ground

The last few years have been turbulent for venture markets globally. Deal volume is down, valuations have corrected, and late-stage funding has become scarcer. Yet within this volatility, thematic funds have shown remarkable resilience.

PwC’s State of Climate Tech 2023 report found that while overall VC and private equity investment fell by nearly half between 2022 and 2023, climate-tech investment dropped by a smaller margin - about 40%. That still amounted to roughly $32 billion globally in 2023, and since 2020, cumulative climate investment has surpassed $140 billion across 4,000 deals. According to Silicon Valley Bank’s Future of Climate Tech report, U.S. clean energy and power companies alone attracted $7.6 billion in VC funding in 2024, a 15% increase year-over-year, with more than three-quarters of deals at seed and Series A stage.

These figures show that while venture capital has cooled broadly, investors continue to channel capital into funds aligned with structural shifts like the energy transition, technological sovereignty, and social resilience.

Climate Funds: From Metrics to Unicorns

Climate tech is the clearest example of this thematic resilience, and its story is increasingly supported by data. World Fund, a European climate VC, analyzed more than 150 climate-tech unicorns created between 2020 and 2024 in Europe and the U.S. Their research revealed that over 60% of these unicorns met their “Climate Performance Potential” criteria, meaning their technologies could deliver significant emissions reductions. By contrast, only a small minority of startups in general deal flow met this threshold. Even more telling, over 80% of climate unicorns that went bankrupt had failed to meet those impact criteria.

The implication is striking: measuring real climate performance is not just an ethical filter, but a predictor of financial resilience. In other words, impact is becoming a risk-management tool.

One case that illustrates this dynamic is Berlin-based Enpal, Europe’s fastest-growing solar company, which became a unicorn in 2021. By combining a subscription model with household solar installation, Enpal has raised more than €1.6 billion in financing. Its climate impact is measurable in the tons of CO₂ avoided each year, and its financial backing is a testament to how climate metrics can underpin durable business models.

Deep Tech and the Long View

eyond climate, deep-tech thematic funds are also gaining ground. These funds focus on frontier innovations - quantum computing, semiconductors, space, and advanced materials - that require longer time horizons and highly specialized knowledge. Historically, such ventures have been considered too capital-intensive for most generalist VCs. But governments and sovereign wealth funds are increasingly backing deep-tech funds, recognizing that technologies of this nature are critical for economic competitiveness and security.

In Europe, for instance, funds like European Innovation Council Fund and Future Ventures have stepped in to bridge the financing gap for deep-tech startups. A case in point is PsiQuantum, a U.S.-U.K. company working on photonic quantum computing, which has raised more than $600 million from backers including BlackRock and Microsoft’s venture arm. For investors, the appeal lies in both the defensibility of the science and the long-term potential to dominate trillion-dollar markets.

Impact as Risk Mitigation

Impact-focused thematic funds are no longer sidelined as philanthropic capital. Instead, they are building track records of resilience by combining rigorous impact metrics with disciplined financial frameworks. Large LPs such as pension funds and endowments are under pressure to align with net-zero goals or the UN Sustainable Development Goals, and this capital demand is flowing into dedicated impact funds.

For example, BlueOrchard, one of the world’s oldest impact investment firms, has mobilized more than $10 billion across 100 countries, targeting both financial inclusion and climate resilience. Similarly, Leapfrog Investments, an emerging-markets impact investor, has consistently delivered market-rate returns while reaching over 400 million people with essential services. The data suggests that aligning with social and environmental goals does not preclude strong returns - if anything, it de-risks them.

Policy and Capital Efficiency

A key driver of thematic funds’ rise is regulatory support. In the U.S., the Inflation Reduction Act has created clear incentives for investment in clean energy and electrification, while the EU’s Green Deal has set ambitious targets for decarbonization. These policy frameworks create predictable demand and lower the risk of market adoption for startups.

At the same time, thematic funds are embracing capital efficiency in ways that generalist investors often overlook. Early-stage climate deals are smaller and more disciplined than the frothy rounds of 2021. Founders are learning to do more with less, and thematic funds, with their sector expertise, can provide not only capital but also strategic partnerships and customer access

Global Case Examples

Thematic investing is no longer confined to Silicon Valley or Berlin. In late 2023, Climactic, a new U.S. seed-stage climate VC, closed a $65 million inaugural fund led by seasoned founders, signaling confidence in early-stage climate investing despite a tougher funding environment.

In Europe, 2023 saw climate-tech investment surge to a record quarter in Q3, with $8.8 billion invested, according to Dealroom. Meanwhile, in MENA, Flat6Labs has emerged as one of the most active climate-tech investors, supporting startups in sustainable agriculture, energy, and water. These regional examples underscore the global nature of the thematic shift.

The Next Chapter

Thematic funds are proving that specialization is not just a marketing angle - it is a structural advantage. By focusing on climate, deep tech, and impact, these investors are aligning with megatrends that will define the next several decades. They are demonstrating that measuring emissions avoided, funding quantum breakthroughs, or scaling essential services in emerging markets can all be pathways to competitive returns.

The rise of thematic venture capital is a reminder that markets evolve with the world’s biggest challenges. For investors, the lesson is clear: purpose and performance are no longer at odds. The funds that marry domain expertise with disciplined execution will not only survive the current venture downturn, they will likely define the next era of growth.

Comment fonctionne le modèle économique d’un Venture Studio ?

À première vue, un Venture Studio peut sembler mystérieux. Ce n’est ni tout à fait un incubateur, ni un accélérateur, ni un fonds d’investissement classique. Pourtant, il combine un peu de chacun de ces rôles, tout en ajoutant quelque chose de plus fondamental : il construit ses propres startups de l’intérieur. Alors, comment fonctionne le modèle économique de ces structures qui attirent de plus en plus d’investisseurs et de fondateurs à travers le monde ?

Pour le comprendre, il faut revenir à l’essence même du Venture Studio : sa mission est de transformer des idées en entreprises viables, en assumant une partie des risques initiaux et en mutualisant les ressources nécessaires au lancement. Mais cette promesse doit reposer sur un modèle économique robuste.

L’investissement initial : le moteur du studio

Contrairement à un fonds de capital-risque traditionnel, qui attend qu’une startup existe avant d’y investir, un Venture Studio prend l’initiative. Il commence par financer la phase zéro : la recherche d’idées, la validation des problèmes de marché, la création des premiers prototypes.

Cet investissement initial provient généralement du studio lui-même, grâce à son propre fonds ou à des partenaires financiers. Par exemple, le Venture Studio parisien Hexa (anciennementeFounders) injecte environ 800 000 € dans chaque projet dès la phase initiale. Ce capital sert à recruter une équipe fondatrice, développer un MVP (produit minimum viable) et valider les premiers retours utilisateurs. En d’autres termes, le studio prend à sa charge une étape que la plupart des startups doivent assumer seules, souvent avec des moyens limités.

Le partage d’équité : un alignement d’intérêts

L’une des spécificités du modèle économique des Venture Studios est le partage d’équité. Puisque le studio assume le risque financier et opérationnel dès le départ, il reçoit une part importante du capital de la startup en échange.

Chez Hexa, par exemple, le studio conserve environ 30 % de l’équité lorsque la startup est « spin-offée », c’est-à-dire qu’elle prend son envol comme entité indépendante. Cette part peut varier selon les studios, certains allant de 20 % à 50 % selon la taille de l’investissement initial et le niveau de ressources mises à disposition.

Ce mécanisme aligne les intérêts : le studio, les fondateurs et les investisseurs ultérieurs ont tous intérêt à ce que l’entreprise grandisse et réussisse.

Des revenus différés mais potentiellement massifs

Le modèle économique d’un Venture Studio n’est pas conçu pour générer des revenus immédiats. Contrairement à une agence de conseil qui facture ses services ou à un incubateur qui demande des frais d’entrée, un studio mise sur le long terme.

Ses revenus viennent principalement de deux sources :

1. Les exits (revente d’actions lors d’acquisitions ou d’introductions en bourse).

2. La valorisation croissante de son portefeuille à mesure que ses startups lèvent des fonds et se développent.

C’est un pari patient, mais qui peut rapporter gros. L’exemple le plus emblématique reste celui de Flagship Pioneering, un Venture Builder basé à Boston, qui a contribué à la création de Moderna. Lorsque la biotech est entrée en bourse en 2018, la valorisation a explosé, générant un retour colossal pour Flagship.

Le coût de fonctionnement : une machine bien huilée

Bien sûr, maintenir un Venture Studio implique des coûts élevés. Ces structures emploient souvent des dizaines de personnes en interne: designers, développeurs, experts en marketing, recruteurs, juristes. Ce sont eux qui fournissent les services mutualisés aux startups en construction.

Ces coûts sont couverts par le fonds du studio, parfois complété par des financements externes. En mars 2025, Hexa a ainsi levé 29 millions d’euros via un financement bancaire structuré en crédit revolving, destiné à soutenir ses activités de création et à garantir une liquidité régulière. Ce type de financement illustre bien que les studios fonctionnent comme de véritables entreprises, avec une gestion de trésorerie et une stratégie financière sophistiquées.

Une logique de portefeuille

Un Venture Studio ne mise pas sur une seule idée, mais sur un portefeuille de startups. Chaque année, il peut en lancer plusieurs, avec l’idée que toutes ne réussiront pas. Mais si une ou deux deviennent des scale-ups internationales, elles compenseront largement les échecs éventuels.

C’est ici que le modèle économique prend tout son sens : il repose sur la diversification et sur un taux de réussite supérieur à la moyenne. Selon le Global Startup Studio Network, environ 84 % des startups issues de studios réussissent à lever un seed round, et 72 % atteignent la Série A, contre environ 42 % pour les startups traditionnelles. Ces chiffres montrent que le rendement d’un portefeuille issu d’un Venture Studio est statistiquement plus élevé et plus stable.

L’intérêt croissant des investisseurs

De plus en plus de fonds traditionnels et d’investisseurs institutionnels s’intéressent aux Venture Studios. Pour eux, le modèle présente un double avantage :

• Une réduction du risque grâce à la validation précoce des projets.

• Une meilleure rentabilité potentielle grâce à la part significative du capital détenue par le studio.

Un rapport de McKinsey souligne d’ailleurs que les startups issues de Venture Builders expérimentés génèrent en moyenne 12 fois plus de revenus au bout de cinq ans que celles lancées dans un cadre classique.

Vers une industrialisation de l’innovation

En observant le modèle économique des Venture Studios, on comprend qu’il ne s’agit pas seulement d’un mode de financement alternatif. C’est une véritable industrialisation de l’entrepreneuriat. Là où les startups classiques reposent sur l’intuition d’un fondateur isolé, le Venture Studio systématise la recherche d’idées, leur validation et leur exécution.

Cette rigueur explique pourquoi tant d’investisseurs voient dans les studios un modèle du futur : ils transforment un pari incertain en une stratégie d’innovation plus prévisible.

Le prochain chapitre

Le modèle économique d’un Venture Studio est donc un pari patient : investir tôt, assumer les coûts de construction, prendre une part du capital et attendre que les pépites émergent. Cela demande des moyens, de la discipline et une vision à long terme.

Mais les chiffres parlent d’eux-mêmes : les studios produisent des startups plus solides, plus rapides à croître, et avec un risque réduit pour les investisseurs. Dans le prochain cycle d’innovation, ce modèle ne sera plus périphérique : il deviendra une infrastructure centrale de la création d’entreprises.

En fin de compte, un Venture Studio, ce n’est pas seulement une usine à startups. C’est un moteur économique où chaque idée devient une opportunité, chaque risque une expérience, et chaque succès une preuve que l’innovation peut être à la fois créative et méthodique.

From Talent to Exit: Building Resilient Companies in the Next Innovation Cycle

The entrepreneurial landscape has never been more unforgiving. With 90% of startups failing and 75% of venture-backed companies not making it, the path from talent acquisition to successful exit requires more than just innovative ideas, it demands strategic resilience. As we navigate an era defined by rapid technological change, economic uncertainty, and evolving workforce expectations, building companies that can weather storms while maintaining growth momentum has become the ultimate competitive advantage.

The New Reality of Business Survival

The statistics paint a sobering picture of modern entrepreneurship. 10% of startups fail in the first year, while first-time founders have only an 18% success rate. However, these numbers tell only part of the story. The companies that survive and thrive share common characteristics: they build resilience into their DNA from day one.

Consider the tale of two companies launched in 2020. Company A, a fintech startup, secured $10 million in Series A funding but burned through capital quickly, focusing solely on user acquisition without building sustainable revenue streams. 75% of fintech startups fail despite venture backing, and Company A became part of this statistic within 18 months. Company B, an AI-driven logistics platform, raised similar funding but allocated 40% of resources to talent development and operational resilience. Today, Company B is preparing for its Series C round, having weathered supply chain disruptions and market volatility.

The Talent Foundation: More Than Just Hiring

Building resilient companies starts with reimagining talent strategy. Organizations face a critical shortage of talent and skills, making traditional hiring approaches insufficient. Resilient companies focus on three pillars: acquisition, development, and retention.

• The acquisition phase requires precision targeting. Netflix's approach exemplifies this, they hire for cultural fit and adaptability, not just technical skills. Their famous "keeper test" ensures every hire strengthens organizational resilience. During the 2022 subscriber crisis, Netflix's talent-first approach enabled rapid pivoting to ad-supported tiers and password-sharing monetization.

• Development comes next. Amazon's Career Choice program, investing $700 million in employee upskilling, demonstrates how talent development creates competitive moats. By 2024, companies investing in continuous learning report 23% higher revenue growth and 18% better employee retention rates.

• Retention strategies have evolved beyond traditional benefits. Organizations face a critical decision: redefine retention or risk irrelevance. Modern retention focuses on psychological safety, career mobility, and purpose alignment. Google's Project Aristotle revealed that psychological safety, not talent density, predicts team performance. Companies implementing this insight see 35% lower turnover rates.

Innovation Cycles: Adapting to Accelerating Change

The next innovation cycle differs fundamentally from previous ones. While past cycles lasted 7-10 years, current cycles compress to 3-5 years. This acceleration demands new organizational capabilities.

• Resilient companies embrace "innovation optionality", maintaining multiple strategic bets simultaneously. 3M's famous 15% time policy, allowing employees to pursue passion projects, generated Post-it Notes and countless other innovations. Modern versions include Atlassian's ShipIt days and Shopify's hack days, creating structured chaos that sparks breakthrough innovations.

• The key is balancing exploration with exploitation. McKinsey research shows that companies allocating 70% of innovation resources to core improvements, 20% to adjacent opportunities, and 10% to transformational bets achieve optimal returns. This 70-20-10 rule provides a framework for navigating uncertainty while maintaining growth.

Building Operational Resilience

Operational resilience extends beyond risk management, it's about creating antifragility. Companies that strengthen under stress rather than merely surviving it.

• Supply chain resilience exemplifies this principle. When COVID-19 disrupted global logistics, companies with diversified supplier networks and flexible manufacturing capabilities thrived. Zara's agile supply chain, capable of design-to-shelf cycles in two weeks, enabled rapid adaptation to changing consumer preferences during lockdowns.

• Financial resilience requires different thinking. Traditional metrics focus on efficiency, maximizing returns while minimizing costs. Resilient companies optimize for adaptability, maintaining cash reserves and flexible cost structures. Salesforce's variable expense model, where 60% of costs scale with revenue, provided crucial flexibility during economic downturns.

• Technology resilience involves building systems that improve with stress. Netflix's chaos engineering, deliberately introducing failures to strengthen systems, exemplifies this approach. Their Chaos Monkey randomly terminates production instances, forcing engineers to build fault-tolerant architectures.

The Path to Successful Exit

Successful exits require strategic preparation years in advance. Companies achieving premium valuations share common characteristics: predictable revenue streams, scalable operations, and strong leadership teams.

• Revenue predictability attracts acquirers and investors. SaaS companies with 90%+ gross retention rates command valuation multiples 2-3x higher than those with 80% retention. HubSpot's focus on customer success, not just acquisition, drove their successful IPO and continued growth.

• Scalable operations demonstrate growth potential. When Zoom's daily users jumped from 10 million to 300 million during COVID-19, their scalable architecture handled the load without major outages. This operational resilience contributed to their $100+ billion valuation peak.

• Leadership team strength often determines exit success. When WhatsApp sold to Facebook for $19 billion, investors cited the founding team's product vision and execution capability as key factors. Building leadership bench strength through succession planning and knowledge transfer creates sustainable value.

Data-Driven Resilience Strategies

Modern resilience requires data-driven decision making. Companies leveraging analytics for resilience planning show 15% better crisis performance than those relying on intuition alone.

• Predictive analytics identify potential disruptions before they occur. UPS's ORION system, analyzing millions of delivery routes daily, reduces fuel consumption by 10% while improving delivery reliability. This operational intelligence provides competitive advantages during fuel price volatility.

• Real-time monitoring enables rapid response. Tesla's over-the-air updates demonstrate how continuous monitoring and remote capabilities create resilience. When battery issues emerged in certain Model S vehicles, Tesla pushed software updates preventing thermal runaway, avoiding costly recalls and maintaining brand trust.

The Future of Resilient Companies

As we look toward the next innovation cycle, several trends will shape resilient company building. Artificial intelligence will augment human capabilities, requiring new talent strategies. Remote-first organizations will need different culture-building approaches. Sustainability will become a business imperative, not just a marketing message.

The companies that thrive will be those that embed resilience into their fundamental operating principles. They'll attract talent by offering purpose and growth, not just compensation. They'll innovate continuously while maintaining operational excellence. They'll prepare for exits by building sustainable value, not just chasing valuations.

Final Thoughts 

Building resilient companies isn't just about surviving the next crisis, it's about creating organizations that strengthen through adversity, adapt to change, and deliver exceptional value to all stakeholders. In an era of accelerating change, resilience isn't just a competitive advantage, it's the foundation for sustainable success.

The path from talent to exit has never been more challenging, but the rewards for those who master resilience have never been greater. The question isn't whether disruption will come, it's whether your company will be ready to thrive when it does.

5 Key Mistakes to Avoid When Scaling a Startup Inside a Venture Studio

Venture studios are rapidly becoming a go-to model for startup creation and scaling, offering entrepreneurs a structured environment with shared resources, expert teams, and strategic support. However, despite the advantages, scaling a startup within a venture studio presents unique challenges. Founders who misunderstand the dynamics or misstep in key areas risk slowing their growth, or worse, failing altogether.

In this article, we explore five critical mistakes startups often make when scaling inside a venture studio and how to avoid them.

1. Misaligning Vision Between Founders and the Studio

One of the foundational pillars of success in a venture studio model is alignment. Venture studios typically originate the idea or co-create it alongside entrepreneurs. If the startup’s leadership and the studio’s core team are not aligned on the long-term vision, mission, or go-to-market strategy, internal friction can derail progress.

Solution:
Ensure early and continuous communication about expectations. Discuss roles, equity, timelines, and exit goals upfront. Co-founders should be deeply involved in the decision-making process and feel empowered, not like hired operators. Regular strategy syncs can prevent misalignment and reinforce a shared sense of ownership.

2. Overreliance on Shared Resources

One of the biggest benefits of venture studios is access to shared talent: engineers, designers, marketers, legal advisors, and more. However, startups can become overly reliant on these resources without developing their own internal capabilities. This can lead to a bottleneck as the startup grows, especially when the studio has multiple ventures demanding attention from the same team.

Solution:
Use the shared resources as a launchpad, not a crutch. From the beginning, identify which capabilities need to be internalized as you scale. Start planning for key hires early, especially in product development, sales, and customer success. Think about your independence roadmap.

3. Failing to Establish a Clear Identity

Venture studio startups often struggle with branding and positioning, especially if their identity remains too closely tied to the parent studio. Investors, partners, and even customers might see the startup as a studio project, not a standalone business with its own mission and market.

Solution:
Invest in brand differentiation. Even though you're born inside a studio, the startup should develop a distinct tone, voice, mission, and visual identity. Focus on storytelling from day one: who are your customers, what problem are you solving, and why are you uniquely positioned? Your identity should resonate outside the studio bubble.

4. Ignoring External Market Signals

Being within a venture studio often gives founders a strong internal feedback loop, mentors, fellow founders, and studio advisors. But relying too heavily on internal validation can insulate the startup from real-world signals. Scaling requires deep market traction, customer validation, and constant iteration based on real usage, not assumptions.

Solution:
Get outside early and often. Talk to users. Validate hypotheses. Run lean experiments. Let customers be your compass. Studio guidance is important, but external traction is what validates whether your business is ready to grow. Don’t skip early-stage testing just because you have access to resources.

5. Structuring Equity Poorly for Long-Term Incentives

Cap table structure can be tricky in a venture studio. Since the studio often takes a significant equity stake early on, founders and future hires might feel diluted from the beginning. If this isn’t managed well, it can hurt morale and make future fundraising difficult.

Solution:
Be strategic and transparent about the cap table. Balance studio equity with founder motivation and talent acquisition needs. Keep enough equity reserved for future employees. Be clear with early investors about the studio model and why it creates value. Build flexibility into the structure to evolve as the startup scales.

Final Thought

Scaling a startup inside a venture studio offers unmatched advantages, speed, support, and shared expertise. But it also requires intentionality and awareness of potential pitfalls. By aligning with the studio on vision, avoiding overdependence on shared resources, establishing a distinct identity, listening to the market, and managing the cap table wisely, founders can turn the venture studio environment into fertile ground for sustainable growth. Like any startup path, success lies in the execution, and in the ability to learn from missteps before they become barriers.

The Liquidity Question: Why It Matters Earlier Than You Think

Liquidity is often an afterthought, until it isn’t. Businesses, investors, and even individuals frequently overlook its importance The Liquidity Question: Why It Matters Earlier Than You Think

Liquidity is the financial world's silent guardian, invisible when present, catastrophic when absent. While most businesses and individuals focus on growth, returns, and profitability, they often overlook the fundamental lifeline that determines survival: the ability to convert assets into cash quickly without significant loss. This oversight has toppled Fortune 500 companies, devastated investment portfolios, and left countless individuals financially stranded.

Understanding liquidity isn't just about financial prudence, it's about recognizing that cash flow, not profit margins, determines who survives economic storms. From corporate giants to individual households, those who master liquidity management thrive while others merely survive, if at all.

The Silent Assassin of Profitable Businesses

The business graveyard is littered with companies that were profitable on paper but failed due to liquidity crises. A comprehensive study by the U.S. Bank revealed that 82% of business failures stem from poor cash flow management, not inadequate profitability. This statistic exposes a fundamental misconception: that revenue equals resilience.

Case Study: The Toys "R" Us Tragedy

Toys "R" Us exemplifies this principle perfectly. In 2017, the retail giant, with $11.5 billion in annual revenue and a dominant market position, filed for bankruptcy. The culprit wasn't declining toy sales or e-commerce competition alone, but rather the company's inability to service its $5 billion debt load amid deteriorating liquidity. The company had tied up capital in inventory and real estate while carrying unsustainable debt obligations, leaving no cushion for operational flexibility.

The lesson is stark: profitability without liquidity is a house of cards. Revenue can mask underlying financial vulnerabilities until external pressures, economic downturns, supply chain disruptions, or unexpected expenses, expose the truth.

The Working Capital Trap

Many businesses fall into the working capital trap, where success breeds failure. Rapid growth often requires increased inventory, extended payment terms to customers, and upfront investments in infrastructure. Without careful liquidity management, growing companies can become victims of their own success, unable to fund operations despite impressive sales figures.

Personal Finance: The Emergency Fund Imperative

The liquidity crisis extends beyond corporate boardrooms to kitchen tables across America. Federal Reserve data reveals that 37% of Americans cannot cover a $400 emergency expense with cash, forcing them into high-interest debt cycles that compound financial instability.

The 3-6 Month Rule: Your Financial Lifeline

Financial advisors universally recommend maintaining 3-6 months of living expenses in liquid assets, cash, savings accounts, or short-term bonds. This buffer serves multiple purposes:

• Prevents forced asset liquidation: Avoids selling stocks, property, or other investments during market downturns

• Maintains credit health: Reduces reliance on credit cards or loans during emergencies

• Preserves opportunities: Enables strategic moves like career changes or investment opportunities

The Psychological Dividend

Beyond financial protection, liquidity provides psychological benefits. Research from the University of Pennsylvania shows that individuals with emergency funds report lower stress levels and greater life satisfaction, even when controlling for income levels. Liquidity isn't just about money, it's about peace of mind.

Market Liquidity: The Investor's Ultimate Insurance

Investment liquidity separates seasoned investors from amateurs. While illiquid assets like real estate and private equity can generate substantial returns, they can also trap capital when liquidity is most needed.

The 2008 Financial Crisis: A Masterclass in Liquidity

The 2008 financial crisis provided a brutal education in liquidity's importance. Investors holding "valuable" mortgage-backed securities discovered that paper wealth means nothing if nobody will buy your assets. Meanwhile, those with cash reserves capitalized on the chaos.

The Numbers Tell the Story:

• The S&P 500 plummeted 57% from peak to trough (2007-2009)

• Investors with liquidity who purchased undervalued stocks generated returns exceeding 300% during the recovery

• Real estate investors with cash bought distressed properties at 30-50% discounts

The Liquidity Premium

Warren Buffett's Berkshire Hathaway consistently maintains massive cash reserves, often criticized as "inefficient" by analysts. Yet this strategy enabled Berkshire to acquire quality companies at discounted prices during the 2008 crisis and the 2020 pandemic. The "liquidity premium”, the cost of holding cash versus investing, pales in comparison to the opportunities liquidity creates during market dislocations.

Corporate Liquidity Metrics: Reading the Warning Signs

Businesses measure liquidity through several key ratios that reveal financial health:

Current Ratio (Current Assets ÷ Current Liabilities)

• Ideal Range: 1.5-3.0

• Interpretation: Measures ability to cover short-term obligations

• Warning Signs: Ratios below 1.0 indicate potential liquidity stress

Quick Ratio (Quick Assets ÷ Current Liabilities)

• Ideal Range: 1.0 or higher

• Interpretation: Excludes inventory, focusing on most liquid assets

• Critical Insight: More conservative than current ratio, better for cyclical businesses

Apple's Liquidity Mastery

Apple provides a masterclass in liquidity management. Despite a current ratio of 0.94 (seemingly concerning), the company maintains over $166 billion in cash and marketable securities. This strategic liquidity enables Apple to:

• Fund massive R&D investments without external financing

• Acquire companies and technologies opportunistically

• Weather economic downturns without operational disruption

• Return capital to shareholders through dividends and buybacks

 The Liquidity Optimization Framework

For Businesses:

• Cash Reserve Strategy: Maintain 3-6 months of operating expenses in liquid assets. This provides operational flexibility and creditor confidence.

• Credit Line Management: Establish revolving credit facilities before needing them. Banks prefer lending to healthy companies, not distressed ones.

• Receivables Management: Implement aggressive collection policies and consider factoring for immediate cash flow.

• Inventory Optimization: Use just-in-time inventory systems to minimize working capital requirements.

 For Individuals:

• Emergency Fund Construction: Build systematically, start with $1,000, then progress to one month's expenses, eventually reaching 3-6 months.

• Asset Allocation Balance: Avoid overconcentration in illiquid assets. Even real estate investors should maintain liquid reserves.

• Liquid Investment Vehicles: Utilize money market funds, short-term CDs, and high-yield savings accounts for emergency funds.

• Debt Management: Minimize high-interest debt that can quickly erode liquidity during emergencies.

The Liquidity Mindset: Beyond Numbers

Liquidity management requires a fundamental shift in thinking, from maximizing returns to optimizing survival. This doesn't mean being overly conservative, but rather maintaining enough flexibility to navigate uncertainty.

The Opportunity Cost Fallacy

Critics often argue that holding cash is "inefficient" due to opportunity costs. However, this perspective ignores liquidity's option value, the ability to act decisively when opportunities arise. During market crashes, recessions, or personal emergencies, liquidity isn't just protective, it's transformative.

Building Financial Resilience

True financial success isn't measured solely by net worth growth but by the ability to maintain stability across various economic conditions. Liquidity provides the foundation for this resilience, enabling individuals and businesses to not just survive but thrive during challenging periods.

Final Thoughts 

Liquidity isn’t just a financial metric, it’s a survival tool. Whether you’re a business owner, investor, or individual, prioritizing liquidity early prevents desperation later.  

As Warren Buffett famously said:  

"Cash is to a business as oxygen is to an individual: never thought about when it is present, the only thing in mind when it is absent."

Don’t wait until the oxygen runs out. 

How to Structure a Cap Table When Building with a Studio

In the fast-evolving world of startups, Venture Studios are becoming a powerful model for company building. Unlike accelerators or incubators, studios co-create startups from the ground up, offering resources, teams, and capital in exchange for equity. As more founders choose to build with studios, one question consistently emerges: how should the cap table be structured?

A well-balanced cap table (short for capitalization table) is not just about equity allocation, it’s a reflection of trust, clarity, and shared incentives between founders, studios, and future investors. In this article, we break down how to approach cap table structuring when launching a startup within a venture studio model.

Understanding the Studio-Startup Relationship

Venture studios usually initiate the idea, assemble the initial team, and contribute significant capital, operational support, and strategic guidance. As such, their role is much deeper than that of a passive investor. Their equity share often reflects this heavier involvement in the early stages.

Startups built with studios typically go through the following early stages:

1. Ideation & Validation – The studio identifies a market gap and develops a viable solution.

2. Team Formation – A founding team is recruited, often led by the studio.

3. MVP Development – Resources like engineering, legal, and marketing are provided.

4. Spinout & Fundraising – Once validated, the startup spins out and raises external capital.

Each of these stages affects the cap table, especially how equity is allocated between the studio, founders, and early team members.

Common Cap Table Structures in Studio Models

Although there’s no one-size-fits-all formula, most cap tables in studio-born startups follow a similar pattern during the spin-out phase:

1. Studio Equity (20%–60%)

Studios generally take a larger equity stake than a traditional investor due to their active role in the company’s creation. This stake typically ranges between 30% and 50%, depending on how much the studio contributed in terms of capital, resources, and risk.

Some models may go as high as 60% in early concept-phase startups, especially where the studio also provides the CEO or core leadership team. Over time, as the startup raises capital and scales, the studio’s ownership usually dilutes.

2. Founding Team Equity (20%–50%)

Founders joining a studio venture may receive 20% to 40% equity, depending on when they join and what responsibilities they take on. A technical co-founder joining post-MVP might receive less equity than one who joins at the ideation stage.

Founders often receive their equity through a vesting schedule, commonly over four years with a one-year cliff, aligning long-term commitment with ownership.

3. Employee Option Pool (10%–15%)

Like any startup, those born from studios need to attract and retain top talent. An option pool—typically 10% to 15% of the cap table, is reserved for employees, especially during the first fundraising round.

Early hires may receive larger chunks from this pool, particularly if they are taking on key operational or product roles in the earliest stages.

4. Investor Equity (5%–30%)

If the startup raises a pre-seed or seed round soon after spinning out of the studio, the new investors’ equity will also need to be accounted for. Early-stage VCs or angel investors may take 5% to 20% depending on the round size and valuation.

This dilutes all existing shareholders, including the studio and founders. Planning for this early ensures the cap table remains fair and balanced post-investment.

Best Practices for Cap Table Planning

● Model Scenarios Early

Before finalizing equity splits, it’s crucial to model various scenarios: What happens if you raise multiple rounds? What if key founders leave early? Having these projections gives clarity and avoids surprises.

● Align Equity with Value Added

The cap table should reflect the actual value contributed. A studio that provides engineers, designers, and growth experts deserves a larger stake than one offering only desk space and mentorship. Likewise, founders driving product and sales should be fairly compensated.

● Use Vesting and Cliff Periods

To ensure long-term commitment, both studios and founders often use vesting schedules. A typical 4-year vesting with a 1-year cliff protects the company from early departures and ensures equity is earned over time.

● Create Clear Operating Agreements

Equity is only one part of the relationship. Make sure legal documents (like operating agreements, term sheets, and founder agreements) clearly outline roles, responsibilities, and equity terms. Transparency builds trust.

How to Think About Studio Involvement Over Time

One unique aspect of cap tables in studio-led startups is the evolving role of the studio. In early stages, the studio is hands-on. But as the founding team grows, external funding is raised, and operations scale, the studio often steps back.

Some studios gradually reduce involvement or maintain board-level influence. This transition should be planned in advance and reflected in vesting or advisory agreements.

Conclusion

Structuring a cap table with a venture studio requires balancing contributions, expectations, and future growth potential. While studios may take a significant early stake, the cap table must remain attractive for future investors and fair to founders who take on operational leadership. By modeling scenarios, aligning value with equity, and using legal clarity, startups can ensure their cap table empowers, not hinders, their long-term success.

As venture studios continue reshaping how startups are born, a thoughtful approach to equity is essential. A well-structured cap table is not just a spreadsheet, it’s a roadmap for shared ownership, mutual accountability, and startup resilience.

AI Startups in PE/VC: Overhyped or Underestimated?

The question of whether AI startups are overhyped or underestimated reveals the fundamental misunderstanding permeating today's investment landscape. Rather than a monolithic sector deserving uniform skepticism or enthusiasm, artificial intelligence represents a complex ecosystem where speculative excess coexists with profound undervaluation. The answer depends entirely on which corner of this vast landscape you examine, and whether you possess the analytical sophistication to distinguish between genuine innovation and cleverly marketed incrementalism.

The Theater of Hype: Where Valuations Defy Gravity

The most visible AI investments often represent the sector's most theatrical performances, where billion-dollar valuations rest on foundations of promise rather than profit. Foundation model companies have captured public imagination and investor capital in equal measure, creating a feeding frenzy that bears an uncomfortable resemblance to previous technology bubbles. These companies command valuations that would make even the most optimistic dot-com investor blush, justified by narratives of artificial general intelligence and revolutionary transformation that remain tantalizingly out of reach.

The application layer presents an even more concerning spectacle of speculation. Countless startups have discovered that adding "AI-powered" to their pitch decks can multiply valuations overnight, regardless of underlying differentiation or sustainable competitive advantages. This phenomenon, dubbed "AI washing" by skeptics, has created a parallel universe where traditional business fundamentals seem quaint and outdated. Consumer-facing AI applications, in particular, have attracted enormous attention despite demonstrating unit economics that would terrify any rational investor operating under normal market conditions.

The Hidden Gems: Where Value Hides in Plain Sight

While headlines fixate on ChatGPT valuations and artificial general intelligence timelines, the most compelling AI investments often operate in the shadows of public attention. Infrastructure companies building the foundational layers of AI deployment represent a dramatically different investment proposition, one characterized by rational valuations, sustainable business models, and defensive competitive positions. These businesses provide the essential plumbing that enables AI deployment at scale, creating platform effects that become more valuable as adoption accelerates.

The vertical AI revolution represents perhaps the most underestimated opportunity in the entire technology landscape. Healthcare AI companies developing FDA-approved diagnostics, financial services firms solving compliance challenges, and manufacturing solutions delivering measurable productivity improvements demonstrate the transformative power of artificial intelligence applied to specific domain problems. European and Asian markets present particularly compelling arbitrage opportunities, where comparable companies trade at significant discounts to American counterparts despite similar growth trajectories and market positions. 

The Sophistication Gap: Why Traditional Frameworks Fail

The challenge facing AI investors extends far beyond simple valuation metrics to encompass fundamental questions about how technological revolutions should be evaluated and financed. Traditional venture capital frameworks, optimized for software businesses with predictable scaling characteristics, struggle to accommodate AI companies' unique cost structures, competitive dynamics, and value creation mechanisms. The result is systematic mispricing that creates both dangerous bubbles and extraordinary opportunities.

Revenue quality emerges as the critical differentiator in this landscape, where two companies with identical top-line growth can justify vastly different valuations based on underlying business model sustainability. Companies achieving platform effects through network externalities, regulatory moats, or proprietary data advantages deserve premium valuations regardless of sector sentiment. Conversely, businesses relying on commodity APIs or consumer adoption without clear monetization paths face inevitable margin compression as market dynamics normalize.

Sector Dynamics: The Tale of Three Markets

Healthcare AI presents the strongest case for systematic underestimation, where regulatory approval processes create natural monopolies and clear value propositions for end customers. The sector's focus on patient outcomes rather than engagement metrics provides sustainable differentiation that pure software companies cannot replicate. FDA breakthrough device designations create competitive advantages measured in years rather than months, while clinical trial data establishes barriers to entry that algorithmic improvements alone cannot overcome.

Financial services AI benefits from regulatory tailwinds as compliance requirements favor established players with deep domain expertise. These companies operate in environments where switching costs are measured in years and relationship-driven sales cycles create additional defensive characteristics. The sector's high-stakes nature means that marginal improvements in fraud detection, risk management, or compliance efficiency can justify substantial technology investments, creating sustainable demand for proven solutions.

Investment Philosophy: Threading the Needle

The AI investment landscape demands portfolio construction that captures legitimate opportunities while avoiding speculative excess. This requires moving beyond binary thinking about sector-wide overvaluation or undervaluation toward company-specific analysis of competitive positioning, market dynamics, and business model sustainability. The most successful investors will be those who can identify genuine innovation amid the noise of marketing hyperbole and venture capital momentum.

Risk management becomes paramount in an environment characterized by extreme volatility and regulatory uncertainty. Scenario planning must incorporate potential AI winter scenarios where speculative investments face significant corrections, while defensive positions in infrastructure and vertical applications provide portfolio stability. Geographic diversification across America, European, and Asian markets helps capture regional arbitrage opportunities while reducing concentration risk in any single regulatory environment.

The temporal dimension adds another layer of complexity, as AI capabilities continue advancing at unprecedented rates while market valuations gyrate wildly based on sentiment and speculation. Patient capital willing to invest through multiple hype cycles will likely be rewarded, while those seeking quick exits may find themselves trapped in valuation bubbles that burst without warning.

Final Thoughts 

The AI investment landscape defies simple categorization as either overhyped or underestimated because it encompasses multiple distinct markets with fundamentally different characteristics and risk profiles. Consumer applications and foundation models trading at extreme multiples clearly exhibit speculative characteristics, while infrastructure companies and vertical AI solutions demonstrate rational valuations based on sustainable business models. The sector's complexity requires sophisticated analysis that moves beyond aggregate funding metrics toward nuanced evaluation of competitive advantages and market positioning. 

Why Corporates Are Launching Their Own Venture Studios

In today’s fast-paced innovation landscape, large corporations are realizing that traditional R&D methods are no longer sufficient to keep up with disruptive startups. As a result, many are turning to venture studios, a powerful model that combines capital, strategic support, and entrepreneurial talent to build new businesses from scratch. But why exactly are corporates launching their own venture studios, and what outcomes are they expecting?

Let’s explore how this shift is reshaping corporate innovation across Europe and beyond. 

What Is a Corporate Venture Studio?

A corporate venture studio (CVS) is an in-house or partnered entity that helps corporates build and launch startups aligned with their long-term strategic goals. Unlike accelerators or incubators that support external founders, a CVS usually creates startups internally, recruits entrepreneurs, and co-owns the ventures.

By leveraging internal resources (capital, data, customer base, infrastructure) and combining them with startup speed and culture, venture studios give corporates a faster, more agile way to explore new markets, technologies, and business models.

Why the Shift to Venture Studios?

Here are five key reasons why corporates are launching venture studios:

1. Faster Innovation Cycles

Corporates typically suffer from bureaucracy and slow decision-making. Venture studios allow them to test and launch ideas in months, not years. Studios build multiple MVPs (minimum viable products), iterate quickly, and kill bad ideas early, much like startups.

This agile experimentation drastically reduces time-to-market and enables corporates to stay ahead of disruptors.

2. Strategic Diversification

Many industries, from insurance and banking to manufacturing and healthcare, are undergoing digital disruption. Corporates can’t afford to stand still. Launching a studio lets them diversify their business models and experiment with innovations outside of their core business, all while maintaining ownership and oversight.

3. Access to Entrepreneurial Talent

Attracting and retaining top entrepreneurial talent within a corporation is notoriously difficult. But a venture studio structure is appealing to founders who want to build, scale, and exit without starting completely from scratch. Corporates are using studios to recruit founders-in-residence, giving them equity, autonomy, and a clear runway to build new ventures.

4. De-risked Corporate Innovation

Studios are designed to fail fast and cheap. Instead of risking millions on a single product that may not fit the market, corporates can spread risk across multiple experiments. When one venture succeeds, it can produce significant ROI. If others fail, they offer learning at a much lower cost than failed internal projects.

This portfolio approach is much more efficient than traditional R&D or M&A strategies.

5. IP Ownership and Strategic Alignment

Unlike investing in external startups or using accelerators, a corporate venture studio allows the parent company to retain full or partial ownership of IP, build ventures that complement their core operations, and align innovation with long-term strategy. This gives them better control over growth areas and exit options.

Real-World Examples of Corporate Venture Studios

Across Europe and globally, several corporates have launched successful venture studios:

• Allianz X (Germany) – A venture arm of Allianz, focused on building and investing in startups in insurtech and beyond.

• Engie Factory (France) – The venture studio of energy giant Engie, which co-creates cleantech startups.

• BCG Digital Ventures (Global) – Although not a corporate itself, BCGDV partners with corporates to co-found and scale ventures that fit their strategic needs.

• Bosch Startup Harbour (Germany) – Focuses on IoT and connected products that can extend Bosch’s innovation capabilities.

• Telefonica Alpha (Spain) – Launched by telecom firm Telefonica to build moonshot tech companies.

These studios often have dedicated teams of product managers, engineers, marketers, and venture architects who operate semi-independently but are strategically aligned with the parent company’s goals.

How Corporate Venture Studios Work

The typical CVS model includes the following steps:

1. Opportunity Identification: Studios analyze trends, gaps, and strategic goals to define promising venture ideas.

2. Venture Design: Teams prototype business models, develop MVPs, and test market traction.

3. Recruitment of Founders: Studios bring in experienced operators or domain experts to lead the startup.

4. Funding & Incubation: The corporate funds the startup’s early stages and provides access to distribution channels, customers, and infrastructure.

5. Spin-Out or Integration: If successful, the startup can either become a standalone company (with shared equity) or be integrated back into the corporate entity.

Common Challenges

Despite the potential, corporate venture studios face some pitfalls:

• Cultural Clashes: Corporate risk-aversion can conflict with the startup mentality.

• Decision-Making Bottlenecks: Too much red tape can slow progress.

• Talent Drain: Retaining entrepreneurial talent after a spin-out can be tough.

• Unclear Exit Plans: Without a clear commercialization or M&A strategy, studios risk building “zombie” startups that don’t scale.

That’s why successful studios build strong governance, KPIs, and incentives from the beginning.

Final Thought

As markets continue to evolve and competition intensifies, corporates can no longer rely solely on internal R&D or passive venture investments. Launching a venture studio offers a powerful way to own the innovation process, unlock new revenue streams, and drive cultural transformation.

For corporates serious about long-term growth, building a venture studio is no longer a luxury, it’s a strategic necessity.

3 Reasons Why LPs Should Look at Studio Models in 2025

The venture capital landscape is experiencing a seismic shift. With traditional VC funds struggling to deliver consistent returns and Limited Partners (LPs) facing unprecedented challenges in deploying capital effectively, a new model is emerging as a compelling alternative: venture studios. As we navigate through 2025, the data tells a clear story, venture studios are not just outperforming traditional investment models, they're redefining what institutional investors should expect from their venture allocations.

1. Superior Returns and Risk-Adjusted Performance

The numbers don't lie: venture studios are delivering exceptional results that should make every LP take notice. Venture studios demonstrate Internal Rates of Return (IRR) that are approximately double those of traditional venture capital benchmarks, with a 24% exit rate compared to just 14% for both accelerators and founders-first VCs. This outperformance becomes even more impressive considering speed to liquidity, studio startups are acquired 33% faster and take 31% less time to IPO.

The systematic approach delivers consistent results: 84% of studio startups raise seed rounds and 72% reach Series A funding, compared to just 42% of traditional ventures reaching Series A. Real-world success stories like Moderna, Twilio, and Bitly demonstrate this isn't coincidence but systematic value creation. For LPs grappling with poor distributions from traditional VC funds, less than 10% of 2021 funds have had any DPI after 3 years, venture studios offer a proven alternative with both higher returns and faster liquidity events.

2. Accelerated Time-to-Market and Capital Efficiency

The venture studio model delivers unprecedented speed and capital efficiency, with startups reaching Series A in just 25.2 months compared to industry averages. This acceleration stems from studios' systematic approach, proactively identifying opportunities, assembling expert teams, and providing comprehensive operational support from day one, eliminating the founder learning curve that typically consumes years and millions. The operational leverage is particularly evident in AI-driven markets, allowing studios to deploy cutting-edge infrastructure across their entire portfolio simultaneously. 

3. Market Momentum and Strategic Positioning for the Future

The institutional investment landscape is rapidly shifting toward venture studios, positioning early LP adopters for significant advantages. In 2024, venture studio funds were nearly twice as common as accelerator funds, accounting for 10.3% of all venture capital funds launched compared to 5.5% for accelerators.

This trend reflects a broader recognition among sophisticated investors that the traditional VC model faces structural challenges. VC fundraisers raised $76.1 billion in 2024, making it the lowest fundraising year since 2019, while only 30% of Limited Partners (LPs) are looking to add VC managers to their portfolios, down 36 points from previous years. The shift represents more than just performance metrics, it's about alignment and control. Traditional VC funds face inherent conflicts between generating management fees and optimizing portfolio returns. Venture studios, by contrast, earn equity through direct value creation and capital investment, aligning their interests more closely with LP returns.

Final Thoughts 

The venture capital industry stands at an inflection point, with traditional models struggling to deliver consistent returns in today's fast-paced, technology-driven market. Venture studios represent a fundamental reimagining of how institutional capital can be deployed, offering LPs superior risk-adjusted returns, faster liquidity, and strategic positioning for the future backed by robust data and proven track records. The question isn't whether venture studios will continue to outperform traditional VC models, the data already confirms this reality, but whether LPs will recognize this shift early enough to capture the significant alpha still available. As we progress through 2025, the LPs who embrace venture studios today will likely look back on this decision as a defining moment that positioned them at the forefront of the next generation of venture capital.

Studio vs Accelerator: Which Model Drives Better Founder Outcomes?

In the fast-evolving startup ecosystem, founders face a fundamental question: Should I launch my startup through a venture studio or an accelerator? Both models offer unique advantages, but they cater to different founder profiles and startup stages.

This article explores the key differences between venture studios and accelerators, and which model ultimately delivers better outcomes for founders.

What Is a Venture Studio?

also known as a startup studio, company builder, or venture builder, is an organization that ideates, builds, and launches startups internally. Unlike accelerators that assist external startups, venture studios create their own concepts in-house, test them for market fit, and then recruit co-founders or CEOs to lead these ventures.

Key characteristics of venture studios include:

• Idea Generation: Studios develop startup ideas internally, based on market gaps, trends, and research.

• Validation: These ideas are tested and refined before any company is formally created.

• Founder Recruitment: Once the idea is validated, the studio brings on founders to execute and scale the startup.

• Infrastructure and Capital: The venture studio provides initial funding, legal support, design, product, HR, and technology resources, removing much of the early operational burden from founders.

This model allows founders to focus purely on execution with much less risk. Instead of starting from zero, they’re stepping into a machine that’s already moving, with a pre-validated idea, seed capital, and expert support.

What Is an Accelerator?

A startup accelerator supports early-stage companies through fixed-term programs that typically last between three and six months. Unlike venture studios, accelerators work with startups that already exist and have a founding team in place.

Features of accelerators include:

• Founders Apply With Their Own Idea or MVP: Startups need to be at the idea or product stage to be considered.

• Mentorship and Training: Accelerators offer guidance through workshops, networking, and mentor matching.

• Seed Funding: Participating startups receive small amounts of funding (e.g., $100K–$150K) in exchange for equity.

• Demo Day and Investor Access: At the end of the program, startups pitch to investors for future funding rounds.

Well-known examples include Y Combinator, Techstars, and 500 Startups. These programs often boost visibility and credibility, opening doors to venture capital and strategic partnerships.

Key Differences

Which Drives Better Founder Outcomes?

  For First-Time Founders: Venture Studios

Venture studios de-risk entrepreneurship. Founders join validated projects with funding, a support team, and a clear go-to-market strategy. This is ideal for:

• Domain experts (e.g., engineers, marketers) new to startups

• Entrepreneurs who want operational backing

• Those who prefer execution over ideation

 Example: Antler and eFounders in Europe have helped dozens of first-time founders build multi-million-dollar SaaS and fintech companies with minimal prior startup experience.

For Experienced Founders: Accelerators

Accelerators work best for founders who:

• Already have a clear idea or MVP

• Seek exposure, mentorship, and network effects

• Can leverage the accelerator’s brand to raise funding

Accelerators can supercharge momentum and lead to large seed or Series A rounds, especially in hot sectors like AI and fintech.

Example:Flutterwave (a leading African fintech unicorn) emerged from the Y Combinator accelerator and rapidly scaled after launch.

A Hybrid Approach?

Some founders even benefit from a hybrid approach: building with a studio, then joining an accelerator to scale and raise capital. As startup ecosystems mature, the lines between the two models are beginning to blur.

Final Thoughts

Both venture studios and accelerators have their place in the startup journey. The key is knowing your stage, strengths, and support needs.

If you need structure, capital, and deep operational support, studios are the way to go.
If you already have traction and seek funding and connections, accelerators will help you scale faster.

The best model for founders depends on their experience, the idea stage, and the kind of startup they want to build.

How We See the Future of Company Building at Mandalore Partners

At Mandalore Partners, we believe the future of company building is fundamentally different from what we've seen before. As we navigate through 2025, we're witnessing a paradigm shift that goes beyond traditional venture capital models, and we're positioning ourselves at the forefront of this transformation.

The old playbook of throwing capital at promising startups and hoping for exponential returns is not just outdated; it's counterproductive in today's complex business environment. We've observed that the most successful companies of the past five years weren't just well-funded, they were strategically guided, operationally supported, and deeply integrated into their target industries from day one.

Our Vision: Beyond Capital to Strategic Partnership

We've spent years observing the venture capital landscape, and frankly, we believe the traditional model is broken. The industry generated $149.2 billion in exit value in 2024, yet despite a $47 billion increase in overall deal value, we saw 936 fewer deals compared to the previous year. This tells us something profound: the market is demanding quality over quantity, strategic depth over transactional relationships.

At Mandalore, we see this as validation of our core thesis. The future belongs to companies that receive more than just capital, they need strategic expertise, operational support, and deep industry integration. This is why we've pioneered our Venture Capital-as-a-Service (VCaaS) model.

What We Mean by Venture Capital-as-a-Service

At Mandalore Partners, we don’t just write checks and step back, we embed ourselves as strategic partners through our VCaaS model, transforming how corporations build and scale innovation. Unlike traditional VCs, we stay hands-on from idea to market leadership, providing not only capital but deep regulatory expertise, industry networks, and operational insight. Our work with insurtech startups shows how this integrated approach turns potential into market dominance, proving that success hinges on more than just technology—it demands the right strategic guidance. With 93% of CEOs set to maintain or grow corporate venture investments in 2024, our model is exactly what forward-thinking companies need: a trusted partner to co-architect their future.

Our 6 Ss Framework: The Architecture of Success

We've developed what we call the 6 Ss model, our proprietary framework that has become the gold standard for successful company building in the modern era. This isn't theoretical; it's battle-tested across dozens of portfolio companies and multiple market cycles:

1.Strategy: We believe every successful company begins with a clear strategic vision aligned with market realities. Our data-driven approach ensures the startups we partner with address genuine market needs rather than pursuing solutions seeking problems.

2. Sourcing: We've built a global network and AI-powered sourcing capabilities that enable us to discover breakthrough technologies and visionary entrepreneurs before they become obvious opportunities. We're not followers, we are discoverers.

3. Scaling: Growth without foundation leads to failure. We provide operational expertise that helps companies build sustainable scaling mechanisms, from technology infrastructure to team development and market expansion strategies.

4. Synergy: We facilitate strategic partnerships that amplify growth potential and create competitive advantages. The most successful companies of the future will be those that create meaningful connections within their ecosystems.

5. Sustainability: Our investment thesis prioritizes companies building solutions for tomorrow's challenges. We consider long-term viability across financial, environmental, and social dimensions.

6. Success: We measure success not just in financial returns, but in creating lasting value for all stakeholders, entrepreneurs, corporations, and society at large.

How We're Leveraging Technology Convergence

We're particularly excited about the convergence of artificial intelligence, IoT, and robotics. These technologies aren't just changing how companies operate, they're fundamentally transforming how they're built.

Our portfolio companies are reimagining traditional industries through technological integration. We're backing robotics companies creating new paradigms for industrial automation and AI-powered startups revolutionizing risk assessment in insurance. What excites us most is witnessing the emergence of hybrid business models that combine digital innovation with deep industry expertise, creating defensible moats that traditional tech companies can't replicate.
This convergence represents more than technological advancement; it's the foundation of sustainable competitive advantage in the next decade.

Our Take on Market Corrections and Opportunities

The valuation corrections from 2021 highs have created what we see as unprecedented opportunities. While others view down rounds and unicorn devaluations as challenges, we see them as market efficiency improvements that favor strategic investors like us.

We're witnessing trends like co-investments, extensions, and significant valuation cuts, all of which play to our strengths as strategic partners who provide more than capital. When financial investors retreat, strategic value becomes even more important.

This market correction has also revealed something crucial: companies built on solid fundamentals with strong strategic partnerships weather economic storms better than those relying solely on financial backing. Our portfolio companies have demonstrated remarkable resilience during this period, with several achieving profitability ahead of schedule while their purely VC-backed competitors struggled with runway management.

What We Predict for the Next Decade

Based on our market position and portfolio insights, we see several key trends defining the next decade of company building:

• Ecosystem Integration: We believe successful companies will be those that seamlessly integrate into broader innovation ecosystems, creating value through partnerships rather than competition. This aligns perfectly with our VCaaS model. Companies that try to build everything in-house will find themselves outmaneuvered by those that strategically leverage ecosystem partnerships.

• Regulatory Proactivity: Companies that anticipate and shape regulatory frameworks rather than merely comply with them will gain significant competitive advantages. Our deep industry expertise positions us to help companies navigate this complexity. We've seen companies gain 18-month market advantages simply by understanding regulatory trends before their competitors.

• Stakeholder Capitalism: We're investing in companies that create value for all stakeholders, customers, employees, investors, and society, rather than optimizing for single metrics. This isn't just about ESG compliance; it's about building sustainable business models that can weather long-term market cycles.

• Global-Local Balance: Future companies will need to operate globally while maintaining deep local expertise and cultural sensitivity. Our network enables this balance, helping companies expand internationally while maintaining local market authenticity.

• AI-Human Collaboration: The future belongs to companies that enhance human capabilities rather than replace them. We're particularly excited about companies that use AI to augment human decision-making rather than automate it away entirely.

Our Competitive Advantage

What sets us apart is our unique position at the intersection of corporate strategy and entrepreneurial execution. We combine the best of corporate strategic thinking with entrepreneurial agility, creating sustainable competitive advantages for all stakeholders.

Our VCaaS model enables corporations to maintain focus on core operations while building breakthrough innovation capabilities. We're not just facilitating transactions, we're architecting the future of corporate innovation.

Why This Matters Now

The companies that will define the next decade are being built today. We're not just predicting this transformation, we're actively creating it through strategic partnerships with forward-thinking corporations and breakthrough technology companies.

Our approach transcends traditional venture capital limitations by creating a new category of value creation. We're building bridges between corporate resources and entrepreneurial innovation, enabling both to achieve outcomes neither could reach alone.

Our Commitment Moving Forward

At Mandalore Partners, we're committed to leading this transformation in company building. We're creating exceptional value for entrepreneurs, corporations, and society at large by reimagining how strategic capital, operational expertise, and market access can be combined.

The future of company building belongs to those who can successfully navigate the intersection of technology, strategy, and execution. We're not just participants in this evolution, we're architects of it.

Final Thoughts 

The venture capital industry is at a turning point, and Mandalore Partners is leading the way with a bold alternative to outdated, transactional investing. Through our Venture Capital as a Service (VCaaS) model, we combine the strategic resources of established corporations with the agility of innovative startups to create lasting value beyond traditional VC limitations. As markets demand quality, strategic depth, and sustainable growth, we’re building companies that leverage technology, industry expertise, and regulatory foresight to drive real impact. At Mandalore, we’re not just funding businesses, we’re designing the infrastructure for tomorrow’s economy. Join us to shape this transformation, not just react to it.