In this short video, High Alpha CEO Elliott Parker defines what a venture studio is, and differentiates them from venture capital funds, incubators, and accelerators.
“The primary difference is that a venture studio is proactive,” Parker says. “A venture studio is designed to come up with ideas for new companies; start those new companies as a co-founder, alongside other entrepreneurs; fund and then scale those businesses. Whereas incubators, accelerators, and venture funds tend to be reactive — waiting for somebody else to come up with an idea and launch a company…. Our view is that corporations… know where the problems are. Why wait for others to go build the company?”
Parker also discusses:
• Venture building structures
• The optimal way for corporations to work with a venture studio
• How to measure success.
Parker says, “The goal has to be financial return back to the core organization. But… there are direct financial returns, and there are indirect financial returns… The direct financial return comes from the investment ROI through an eventual exit, or the new revenue [and] profit that comes if that new venture gets pulled back into the core organization. The indirect returnl, however, can come immediately, in the form of learning that informs how the core corporation operates its business. It’s important to watch both of those…”
High Alpha Innovation is one of InnoLead’s strategic partners; more info here.