From Idea to Company: The Venture Studio WayThis new model for entrepreneurship pairs founders with resources to build businesses from scratch.

ByKate Hancock

Opinions expressed by Entrepreneur contributors are their own.

Coming up with a business idea is easy. But coming up with a great business idea? That's a challenge. An even bigger challenge is taking that idea and turning it into a viable business opportunity.

With90% of startups failing, how can you be sure your idea is worth pursuing? Unfortunately, there is no surefire way to tell if a company will be successful.

Before investing in a new business, you need to test its potential. There are lots of ways to evaluate business ideas, and one that is gaining increasing popularity is the venture studio model. Venture studios offer a way for everyone to be an entrepreneur by combining company building with venture funding to compress time, iterate quickly and scale more ambitiously than would otherwise be possible.

Studios create multiple startups at once, rapidly test new startup ideas and either validate or "fail fast." If an idea is validated, the venture studio supports the company operationally and financially. This support includes everything from software development, finance, and legal to HR, marketing and communications. In return, the venture studio takes a percentage of the company. Highly successful and well-known brands that have launched from startup studios include Dollar Shave Club, Answers.com and Giphy.

Related:Can a Startup Studio Help You Find Your Next Big Idea?

Studios recognize that many people with great ideas go unfunded and unsupported because they don't have access to capital or the operational support needed to turn their creativity into a viable business opportunity. By de-risking startups for entrepreneurs in the early stages, studios can attract a wider and more diverse set of founders.

For example, Nobody Studios, a globally distributed, high-velocity venture studio headquartered in Laguna Beach, Cali., recently tested out Parentipity. The studio, which has committed to creating 100 new companies by 2027, was able to get Parentipity from idea to product launch in just five months, in 14 languages and 20 countries, for a cost of just $78,000.

It's examples like these that make venture studios such a hot topic in today's startup world. Studios have a proven track record of success, delivering impressive results. A recentreport from the Global Startup Studio Networksays, "84% of startups coming out of studios go on to raise a seed round. Of those startups that make it to the seed round, 72% of those ventures make it from seed to Series A, compared to traditional startups in which only 42% of ventures that get to seed make it to Series A."

Related:Is the VC Era Over? Let's Hope So for the Sake of Business.

As an entrepreneur, I know the tireless work that goes into getting an idea past the point of a spark of creative genius in your head. For veteran and aspiring entrepreneurs alike, venture studios offer a great opportunity to ideate, pressure test and refine ideas to ensure they truly solve a need and, ultimately, can be offered to customers. Studios also provide founders with a long-term partner on the entrepreneurial journey.

I for one plan to keep a closer eye on this model and am excited about the proven, low-risk method venture studios offer aspiring founders to build companies from scratch and bring their ideas to life.

Related:Taking a Venture Studio Approach to Drive Blockchain Adoption

Wavy Line
Kate Hancock

CEO of Bintana Sa Paraiso

Kate Hancock is a serial entrepreneur and international TEDx speaker. She started her first business with $20 and grew it to over $1 million in one year. She is the host of the TV show Founder's Story and Meta Talkz.

Editor's Pick

Related Topics

Business News

An 81-Year-Old Florida CEO Just Indicted for a $250 Million Ponzi Scheme Ran a Sprawling Senior Citizen Crime Ring

Carl Ruderman is the fifth senior citizen in the Miami-Fort-Lauderdale-Palm Beach metropolitan area to face charges in connection with the scam.

Money & Finance

Want to Become a Millionaire? Follow Warren Buffett's 4 Rules.

企业家是不能过度指狗万官方望太多a company exit for their eventual 'win.' Do this instead.

Business News

Taco Bell Slammed With Lawsuit Over 'Especially Concerning' Advertisements, Allegedly Deceiving Customers

The class action lawsuit claims the chain is advertising more than they deliver.

Business Culture

The Newest Workplace Trend Has HR Sounding The Alarm

HR departments are still figuring out how to handle "quiet quitting," but a new trend is taking over.

Business News

Body of Missing 27-Year-Old Goldman Sachs Banker Found in Nearby Body of Water

John Castic, a 27-year-old Goldman Sachs employee, went missing around 2:30 a.m. on Saturday after attending a concert at the Brooklyn Mirage in East Williamsburg.