Venture Studio FAQs

I was lucky enough to speak at SXSW Sydney this October on the topic of venture studios. The big questions raised during the audience Q&A are ones I hear often, so here's an FAQ.

1. Do venture studios take too much equity?

We take 15% equity (ordinary shares) as we think this strikes the balance between empowering the founder and giving us enough of a slice to build the business as if it were our own. Do your research, get a second opinion.

2. Is an in-house team always preferable?

If you can find an awesome in-house tech team, fantastic. Venture studios are another option for those who aren't connected to technical people. Benefits include opening doors, potentially saving equity, and de-risking hiring.

3. What does the future look like for venture studios?

The category is going to grow significantly. We'll see tighter specialism in customer focus, industry, and model.

4. Will AI disrupt venture studios?

Building a business is unlikely to become so easy that it doesn't require expertise. Markets are competitive. Is it pure AI? Or AI plus humans? I'd put money on the latter.