What Is A Venture Studio? Everything You Need To Know About Our Venture Studio Model

By Neil Vose

An interesting funding model has been making the waves for several years now.

Venture studios.

Over the past few decades, this model has had incredible results. To begin with, venture studio startups have a 30% higher success rate than traditional startups. Startups created in venture studios also achieve seed funding twice as fast and exit 33% faster than conventional startups.

But what exactly is the venture studio model? And why should it matter to founders and investors?

What is a venture studio?

A venture studio is a unique combination of company-building and venture funding. Unlike traditional VC firms that provide capital to existing startups, venture studios actively create and develop new companies from the ground up. They offer initial funding, a strategic roadmap, and hands-on operational support. 

Additionally, they can collaborate with scale-ups and corporates by leveraging their expertise and resources to drive innovation, streamline operations, and explore new market opportunities, ultimately fostering growth and long-term success.

 For founders, working with a venture studio means having a partner that offers more than just money – they get expertise, resources, and a structured approach to growth. For investors, it means accessing well-vetted, high-potential startups with reduced risk and increased chances of success. 

They benefit from the rigorous vetting and development processes that studios employ, ensuring that the startups they back are not only innovative but also structurally sound and market-ready. 

This dual approach of funding and building significantly de-risks investments and opens up opportunities to be part of high-growth ventures from their inception.

N.B. Find out more about our S/EIS AI-focused fund here.

History and evolution of venture studios

The venture-studio idea dates to 1996, when Bill Gross launched Idealab to systematically test ideas, back the winners with shared resources, and spin them into standalone companies. Over time, Idealab reported creating 150+ companies with 45+ IPOs and acquisitions – proof that a repeatable company-building process could work in practice.

After the dot-com reset, the model spread. Rocket Internet (founded 2007) industrialised venture building in Europe, pairing centralised services with aggressive execution and helping shape successes like Zalando and Delivery Hero. At the same time, specialised and corporate studios arrived: BCG Digital Ventures (2014) formalised the corporate build model, while Founders Factory (2015) combined a studio with sector accelerators and brand partners.

Independent studios scaled too. High Alpha (2015) focused on B2B SaaS and has launched 40+ companies. eFounders – now Hexa – began in 2011 and reports a portfolio with multi-billion-dollar aggregate value, reinforcing that a tight thesis plus shared playbooks can produce repeatable outcomes.

By the 2020s, studios globalised and specialised (AI, fintech, climate, deep tech) and the studio + fund hybrid became common. The emphasis shifted toward capital efficiency, cleaner governance, and clearer spin-out criteria, with studios treating venture creation as a discipline rather than a one-off bet.

Venture studio vs accelerator vs incubator

These three models all support startups, but they’re built for different moments.

Venture studios often start at the very beginning. They co-create new companies from scratch bringing a hands-on team, playbooks, and initial capital to move from a clear problem thesis to a first working product, first users, and early revenue. The aim is simple: build something real, fast, and get it seed-round ready.

Accelerators help teams that already exist. Startups join a fixed-length cohort, trade a small equity stake for intense mentorship and network access, and focus on turning early traction into repeatable growth across customers and markets. In other words: take what works and scale it.

Incubators are lighter-touch and longer-horizon. They provide space, community, and mentoring (often before any funding) so founders can explore ideas, build networks, and develop at a measured pace.

In short: venture studios often build from nothing to something; accelerators scale what’s working; incubators nurture exploration.

Venture studio equity and funding

How venture studios make money

Studios earn primarily through equity in the companies they co-found. They may also take modest cash fees for services (product, design, growth, talent, legal) during intensive build phases. Some operate a fund alongside the studio that invests pre-seed/seed and captures upside via standard venture returns. Corporate studios can add strategic value capture, such as options for commercial partnerships, first-look rights, or revenue-share on pilots.

How much equity do venture studios take?

Equity is negotiated case-by-case, but studios typically aim for a material minority at formation that reflects their contribution of team, playbooks, initial capital, and shared IP. The stake usually steps down over time through founder refreshers, employee options, and later rounds. Expect variation by model: capital-heavy or corporate studios may take more up front; lightweight, founder-led builds may take less. Investors will look for clarity on vesting, founder ownership at seed/Series A, and long-term incentive alignment.

Benefits of venture studios for founders

Choosing a studio is a strategic call. Here’s a clear view of what you gain:

• Faster validation and build. You plug into proven playbooks, tight sprints, and a bench of specialists that move ideas to working product quickly.
• In-house capability from day one. Product, design, engineering, growth, and talent are on tap, so you’re not waiting weeks to hire core roles.
• Embedded fundraising pathways. Studios often pair a companion fund with investor networks, helping you raise earlier and with cleaner story arcs.
• Fewer avoidable mistakes. Shared learnings, governance, and standard processes reduce execution risk and keep focus on customer evidence.
  
  

Who is a good fit?

• Domain experts who want a product/growth partner to de-risk execution and turn insight into a tangible MVP.
• Technical founders seeking commercialisation support, early customers, and investor access without building every function from scratch.
• Ambitious operators who value speed, structure, and accountability over full independence and are comfortable trading equity for momentum.

Benefits of venture studios to investors

Picking the right studio is as much about the platform as the pipeline. Here’s how to think about it.

Portfolio construction and risk

Studios create multiple shots on goal under one operating system: shared governance, reporting, and talent. That concentration cuts noise but introduces platform risk: your exposure rides on the studio’s people, process, and capital discipline. Diligence should prioritise the team and model (how they source ideas, kill weak ones, and support winners) as much as the venture list itself.

Expected returns and timelines

When a studio consistently compresses the journey from idea to first product and revenue, you tend to see quicker mark-ups and cleaner paths to follow-on capital. Outcomes still hinge on market timing, founder quality, and the studio’s reserve strategy. Look for pace without spray-and-pray: measured deployment, milestone-driven follow-ons, and clear spin-out criteria.

How our venture studio model works

The EHE Group consists of EHE Ventures Limited and The Startup Factory.

Together, EHE Group is a venture studio that offers three distinct but interdependent products to enable the growth of UK start-ups/scale-ups (many of those being AI first and AI-enabled). 

Having built and invested in multiple tech startups ourselves, we understand that building and scaling a successful tech startup requires more than just a great idea. That’s why our venture studio model is designed to provide comprehensive support across these critical areas: Tech, Funding, and Advisory. 

Our mission is to empower AI-driven startups and tech entrepreneurs to achieve rapid growth and make a lasting impact. Here’s how we do it:

Tech

Our venture studio boasts an in-house engineering team through The Startup Factory (TSF). This team comprises tech experts specialising in building scalable software applications. For years, the TSF team has leveraged their technical know-how and business expertise to help startups and investors realise their potential. 

Here’s how:

• Startup sprint: Using techniques adapted from the Google Ventures Design Sprint process, TSF guides founders through problem analysis, user journey mapping, ideation, user experience design, and prototype testing. It also runs value proposition workshops and supports user research initiatives.

• MVP development: TSF helps founders develop their Minimum Viable Products (MVPs), ensuring that these initial versions are robust, user-friendly, scalable, and aligned with user needs. 

• Technical due diligence: The TSF team conducts thorough technical assessments to ensure that the startups we support are built on solid technological foundations. This helps investors back the right ventures, even without deep technical expertise.

• Innovation projects: For scale-ups and corporates, TSF offers innovation projects that inject AI and cutting-edge technology into traditional industries. 

Funding

EHE Ventures provides the financial support necessary for startups to scale. We’re Entrepreneurs Helping Entrepreneurs – which is why our AI fund is being created to provide founders with the kind of hands-on support they need and help investors lead the future of innovation by backing the real winners:

• Equity fund: We will offer an equity fund focused on UK-based AI entrepreneurs, with investments ranging from £250k (pre-seed) to over £1m (seed+). This fund is designed to support early-stage and fast-growth AI companies, helping them to scale quickly. We can either lead on an equity investment or co-fund.

• S/EIS qualification: We invest in founders who have S/EIS eligibility. This makes it more attractive for investors to support innovative, high-growth potential companies.

• Strategic investment: We combine our technical due diligence with operational experience to identify and invest in AI-driven startups that have the potential to become industry leaders. Our focused approach ensures that we back the most promising ventures.

Advisory

Beyond initial investment, we also provide comprehensive support to ensure that our portfolio companies are well-prepared for growth and investment. This includes: 

• Strategic guidance: We work collaboratively with our portfolio companies to devise a clear growth strategy and highlight core areas in which we can offer bespoke support.

• Industry connections: We leverage our experience and network to help our portfolio companies make important business decisions, expand into new markets, and find valuable partnerships. This means they’ll get expert advice on how to grow their businesses, reach more customers, and connect with the right people to drive fast growth.

• Ongoing fundraising: As our portfolio companies seek more investment, EHE will connect them with potential investors and guide them through the fundraising process. This means they’ll get help finding the right investors, preparing their pitches, and securing the funds they need to grow. 

In a nutshell, we’re a team of tech experts, investors, and entrepreneurs with skin in the game who have chosen to combine our expertise to help both founders and investors achieve fast growth.

What this means for founders

Our venture studio actively helps build and develop your company from the ground up. You get access to a team of experts who work with you on every aspect of your business. This means you’re not just getting money; you’re getting a partner who is as invested in your success as you are.

With our hands-on support, technical expertise, strategic funding, and expert advisory, you’re not just launching a startup; you’re building a high-potential, scalable business with a much higher chance of success.

What this means for investors

As entrepreneurs ourselves, we align our interests with both founders and investors, sharing in the success of the companies we build. 

Our venture studio focuses on creating and nurturing high-growth AI and tech startups, giving you access to a pipeline of well-vetted, innovative companies. We combine technical expertise with operational experience to invest in startups poised to become industry leaders. 

This strategic approach, paired with our ongoing support for portfolio companies enhances their chances of success, leading to better returns for you.

Venture studio success rates and data

Do venture studios work? The short answer: they can. Studies and ecosystem reports often show better early survival and faster fundraising for studio-born companies. That uplift is usually linked to hands-on company creation, shared services, and standardised governance. You’ll also see higher conversion to seed, quicker time to the first round, and stronger follow-on rates than solo founders. That said, treat comparisons with care. Samples are small, definitions differ, and methodologies vary.

A practical way to cut through the noise is to track a few simple metrics over time:

• Conversion rates: idea → spin-out, seed, Series A.
• Founder ownership at seed: is it competitive for hiring later?
• Time to first revenue: are teams reaching customers faster?
• Realised outcomes: exits and DPI, not just paper mark-ups.

The takeaway is that a well-run studio with aligned incentives, clear governance, and a focused thesis can outperform. A poorly designed one won’t. If a studio can’t share these basics (plus pipeline health, talent density, and a disciplined “kill early” culture), consider that a red flag.

Conclusion

Our venture studio model offers the best mix of technical support, funding, and expert advice. This setup helps startups succeed and gives investors a better chance of backing winners. 

If you’re an investor looking for high-growth opportunities in AI and tech or an investor mentoring a start-up founder, register your interest in our fund and let’s talk about how you can be part of the next big innovation. 

WARNING: Don’t invest unless you’re prepared to lose all the money you invest. This

is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more.

Venture studio FAQs

Are venture studios the same as startup studios?
Yes, terms overlap. Both refer to organisations that co-create companies with founders.

How much equity does a studio take?
It varies by model, contribution, and sector. Expect a meaningful minority at formation, stepping down over time.

How do studios choose ideas?
Most run a thesis-led pipeline with customer discovery, small-scale tests, and milestone gates before committing resources.

Can I join with an existing idea?
Many studios partner with founders who bring problem/market expertise and want a build partner to accelerate execution.

Do studios work with scale-ups and corporates?
Yes. Some run innovation projects, pilots, or JV spinouts alongside net-new ventures.