Blockchain Venture Studio

Venture studios are not a new concept they have been around for a long time now. However, with the emergence of blockchain technology a new type of venture studio has emerged blockchain venture studios.

To understand what a blockchain venture studio does you first have to understand what a venture studio is.

What is a venture studio?

A venture studio in its simplest form is an organization that helps create and build new companies commonly known as startups.

Venture studios will usually work almost like a parent company initially providing capital and expertise to help a startup gain traction in the marketplace.

They however work differently from traditional venture capitalists they are very involved from the second they come on board. They provide staff and experts depending on the market the startup is trying to enter and also provide funding to get the company off the ground.

Think of them as business guardian angels guiding you through the first tricky steps of running a successful business.

Now of course they are not doing this out of the goodness of their heart as they have provided you the capital to succeed, they are protecting their investment by making sure you have all the tools in place to stand the best chance of succeeding.

Do venture studios actually work?

In a word yes allow me to explain why. Starting a business from the ground is very difficult as anyone who has ever started and grown a large-scale business will happily tell you.

It's one thing to have an idea and begin trading but if you want to get to seriously large levels you will need expertise, of course, there are exceptions to the rule but 99% of the time to create a truly large scale and successful business you need some help.

And who better to help than industry leaders that already operate in that space and know it inside out.

Now you may think why would an industry leader in a particular marketplace decide to help a small startup.

And you would be right to think that typically if something sounds too good to be true then it normally is however everything they provide to you comes at a cost.

Normally when you engage a venture studio you will typically have to hand over a stake of your business to them for all the expertise and capital that they will provide to you.

This means that as you grow, they grow because you essentially become a part of their portfolio of businesses. Although you will own and run your business independently of their name typically, they will own a percentage of the company and will have invested money in you to get you to where you are. So as your company's value grows so does the value of their share, therefore, making it a win-win situation for everyone involved.

How is a Blockchain Venture Studio different?

It isn’t really is a short answer, allow me to elaborate. As we mentioned venture studios provide the expertise and the know-how to help a company (startup) to succeed. A blockchain venture studio is ultimately no different.

When you are starting any new business, you want to engage the best minds possible in that field to help guide you to success. If that field is a new and everchanging as blockchain technology, then you would want the best experts in blockchain.

Unlike typical venture studios, blockchain venture studios specialize solely in that technology and the reason being it is so new and rapidly changing that it requires complete focus.

Wrap

Blockchain can be used in a variety of different sectors but the base principles are the same so if someone completely understands blockchain then they can help to apply this knowledge to your startup business regardless if it's in finance or commerce.

When you engage a blockchain venture studio you are ultimately hiring a blockchain expert to guide and fund your business to success.

Of course, as we mentioned earlier with typical venture studios blockchain venture studios will also want a slice of the pie for all their time and effort. However, when entering such a new and really uncharted marketplace having some of the most influential talents on board helping and funding your success is surely worth giving up some equity in my opinion.

If they are willing to back you then it’s a sign that you are on to something and better to give up a little equity and succeed or give up none and maybe not survive the first year.