Entrepreneurs, What Are Your Funding Options?
YCombinator just wrapped up its W2024 application round. If you’ve applied, how did it go? 🤓
While many startup founders turn to accelerators for product-market fit and initial capital, there’s an alternative for those still exploring the right idea or assembling a team — Venture Studios.
Unlike traditional funding models, Venture Studios incubate their own ideas, develop a minimum viable product, establish product/market fit and early customers, and then bring in entrepreneurial founders to lead and scale the business.
Notable companies born out of Venture Studios include Twilio and Moderna.
If you’re stepping in to manage and scale the startup, you significantly mitigate early-stage risks. However, this often comes at a cost, with Venture Studios taking anywhere from 30% to 80% of the equity.
Contrary to the conventional startup journey of the following steps: 🚀
- Coming up with an idea
- Forming a team
- Starting to test MVP
- Raising seed funding
- Obtaining venture capital
Accelerators and venture studios offer a unique path for you.
The “safer” options
Incubators, accelerators and venture studios, serve as viable options to mitigate the risks of early-stage startup failure by assisting founding teams in discovering…
