Innovate Faster with Startup Studios

Reducing the time to discover what works

Startup studios — companies that birth startups — have a benefit of innovating more quickly than the average founder that starts a venture from scratch. I refer to this part of the process as the Zero to One phase, borrowing the language of Peter Thiel. The expected timetable from investors is that you have been working on your venture for 1–3 years before discovering a stable model worthy of investment (yes, there are always exceptions).

The startup studio model cuts down the time of the initial process from 1–3 years to about 3 months to a year.

Startup studios reduce the time it takes to move from idea to a functioning prototype through several methods, for example providing a library of concepts, building with the investor, and leaning on the knowledge of seasoned entrepreneurs in the studio. These processes and support structure are key to expediting the process.

As you are developing your studio, the answers to these questions will influence the support structure you need:

What types of ventures does are studio want to focus on creating?

What do we want our focus to be?

Example, for Rocket Internet, they are focused on cloning products that work in new markets (aka me too products). This reduces the risk since an established company exists with a proven business model and user experience that works. The activities and support are then centered around ‘how to get a version of that product to work in this new market’. They are essentially skipping or dramatically reducing the Zero to One phase.

For Betaworks, they are creating new products centered around media and technology (social media and digital content). Because they are ‘new products’ an emphasis is placed on initial rapid prototyping related to user experience and traction.

The type of ventures you want to create and your focus will determine the support needed to expedite the creation of new to the world ideas (aka Zero to One phase). This may start broadly and become more focused over time, but it is beneficial to understand your initial intent before diving in. To get more tips on startup studios sign up here.

Best,

Sergio Marrero

Co-Founder & CEO, Caila