Someone asked me this question, and this is the summary of that rant… 🦙

Let’s face it, building a startup is like trying to climb a mountain with a spoon. You need a team with the right skills, access to resources, and the ability to move faster than a speeding bullet. And that’s where venture studios come in. They provide all of these things, but at the cost of equity.

Equity in the earliest embers of an experiment, based on a series of hypothesis,… and only if all the stars align, and the execution is near-perfect, than you may just have a growing and scalable business.

Now, some first-time founders may be hesitant to give up a significant portion of their startup in exchange for these benefits.

But repeat founders know better. They understand that the equity venture studios take as a cofounder is well worth it. It’s like paying for a ticket to ride the express train instead of taking the local without google maps.

Here are a few reasons why:

• Access to expertise and resources. Venture studios have a team of experienced professionals with expertise in product development, marketing, fundraising, and more. They also have resources such as a vast network of founders, leaders, first customers, and access to investors. And for repeat founders who have experienced the challenges of building a startup without these resources, the value of having them available is like finding water in the desert.
• Higher chance of success. Let’s be real, the odds of building a successful startup are about as good as winning the lottery. So anything that can increase the chances of success is worth it. Working with a venture studio as a co-founder increases the chances of success by providing access to expertise, resources, and a network of investors and advisors. It’s like having the winning numbers before you even buy the ticket. Learn more here
• Efficiency and speed. Repeat founders understand that time is money, and wasting either is like throwing your money into a shredder. Working with a venture studio can help expedite the process of building a startup by providing the resources and expertise necessary to move quickly. It’s like strapping a rocket to your spoon, turning your spoon into a icepick and reaching the top of the mountain in record time.
• Alignment of interests. Venture studios are incentivized to help their startups succeed because their success is tied to the equity they hold in the company. Repeat founders get this. They know that working with a venture studio can help ensure that everyone is working towards the same goal. It’s like playing on a sports team where everyone has a stake in the outcome.

There are more, pros and cons, but this Mr. West coffee is running low… have a great weekend friends. If you got this far… thanks for reading… :)

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