Venture Studio Canvas

Building a Conscious VC Fund

Having recently explored the Angel Investor Canvas, today I'm immersing myself in the intricacies of the Venture Studio Canvas.

In our previous exploration, "The Promise of Venture Studio,” we laid the groundwork for understanding the diverse types of venture studios and their potential returns. Now, let's venture deeper into the nine essential building blocks that form the core of a thriving venture studio. But before we embark on this journey, it's crucial to emphasize the paramount importance of defining your studio's approach. Each model holds its own magic, and understanding which one aligns with your vision is the key to unleashing its full potential.

1. Venture Thesis:

The nucleus of your venture studio lies in your venture thesis. It's the compass that guides you toward the kind of ventures, sectors, themes, and technology stack you'll focus on. What drives your passion to build and invest? Is there an impact lens, a purpose that fuels your journey? Your venture selection process is your secret sauce for identifying and nurturing game-changing ideas.

2. Sourcing Talent:

Identifying potential entrepreneurs is an art in itself. What methods and channels will you employ to unearth these visionary minds? Where will you seek out the talent that will be the driving force behind your ventures?

3. Team:

A venture studio is only as strong as its team. Who are your partners, and how does each one's experience dovetail with the studio's focus and thesis? The synergy within your team is the bedrock of your success.

4. Portfolio Construction:

Crafting a well-balanced portfolio is an intricate dance of venture stage, risk assessment, reserve allocation, and fund structure. It's the art of distributing resources for optimal growth and returns.

5. LPs Profile:

The choice of Limited Partners is a strategic move that can make or break a venture studio. What type of LPs are you seeking, and what is your fundraising strategy? How do you plan to educate potential partners about the venture studio model?

6. Advantage:

What sets your venture studio apart from traditional venture capital? What is your secret recipe that gives you the edge over other studios? Understanding and leveraging your unique advantage is your key to success.

7. Portfolio Building:

The process of venturing into new projects demands a deep level of engagement. What is your strategy for building ventures? How extensively are you involved in the venture-building process, and up to what stage? Do you primarily seek out entrepreneurs externally, or do you internally develop ventures with a team of venture architects?

8. Structure:

Choosing the right entity type and jurisdiction lays the foundation for your venture studio's legal and operational framework. Decisions on holding company, SPV, JV, or other structures can significantly impact your studio's trajectory.

9. Economics:

Defining return expectations, exit strategies, and the financial instruments used during venture construction are the final strokes in creating a thriving venture studio.

Venture studios represent a close-knit structure akin to high-touch venture capital. With a concentrated portfolio strategy and value-added services, they serve as a launchpad for groundbreaking ventures. By carefully navigating the nine core building blocks and understanding the nuances of each model, a venture studio can chart a course toward sustainable success and impactful innovation.

Here is some good stuff to dive into to learn about the venture studios:

• [Report] Startup studios emerging as a growing force by Charles Perrard, Sparkling Partners

• [Report] Big Startup Studios Research 2023 by Max Pog

• [Podcast] Building The Berkshire Hathaway of The Internet with Andrew Wilkinson (Co-founder, Tiny Capital), by Venture Stories, Village Global

• [Whitepaper] The Emerging Role of Venture Builders in Early-Stage Venture Funding by Jonathan Bariller, Huub van Verseveld, Andrew Locke, Niel Wyma, and Boris Spirov (MBA Class of December 2018) under the supervision of Claudia Zeisberger, Academic Director of the Global Private Equity Initiative (GPEI), INSEAD

• [Whitepaper] Why Venture Builder/Startup Studio?

• [Book] Startup Studio Playbook by Attila Szigeti

Stay humble, stay curious 🌟🌟🌟!

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