June 7, 2021
What are the Startup Studio Benefits? Why is it really the best model for doing business? Find out here all the data you need to know!
In the last articles, we covered many aspects of the Startup Studio model and today we will dive into the Startup Studio benefits.
If you want to catch up with the old ones, you can find them here:
Now we can start!
Global Studio presence
Let's start with the number of active startup Studios worldwide.
In the 1990s, the Venture Builders model was at the very beginning. In those years, the first founders were pioneers of the model in a world still dominated by the old way of doing business.
From the 90s an exponential growth of active Studios took place at the global level; We could count almost 200 Studios in 2014.
How is the present situation? Well, not surprisingly the number of Studios in the world has exponentially increased exceeding 500. We have 560 active Studios in 2021.
What about Italy? We can count 8 Venture Builders, not that many. But still, considering that Mamazen was the sole Startup Studio in 2017, in 5 years our country experienced a 700% growth.
But which is the ground for this growth? We can name many reasons, but the truth is that startups built by Studios perform much better than other startups:
The Exit Rate
The Exit Rate is calculated as the ratio between the number of Exits on the number of startups created by the Studio.
Valuation at Exit
The number of acquisitions is much higher than the number of IPOs (Initial Public Offering), this means that it is much more likely that a startup is acquired by a larger company rather than be listed on a stock exchange (as Coinbase has recently done).
One figure is still worth highlighting: the number of startups generated by a Studio that reach the Exit through an IPO is three times higher than for traditional startups.
Talking about valuation, startups produced by Studios get Exits at higher values:
With the term Unicorn, we mean a startup that has been valued at more than 1 billion dollars. Yes, you got it right. $1 billion.
As you can imagine this does not happen so frequently. That's why such startups are called in this way. Yet, despite the difficulty, unicorns have been found in recent years. Nice isn't it?
Why am I telling you about this? Well, 4% of all known Unicorns have been created by three Startup Studios. Among these, we have Science Inc. that created Dollar Shave Club only 1 year after its foundation.
We can move on to the next article right? And as usual here is a preview of what you will read in our next appointment: how to organize the budget and the team of a Studio.
Mamazen is in a never ending evolution. We have been the first to introduce the Startup Studio model in Italy so, now we want to do something more. Our aim is to start a new era in the startup world. That's why we have combined the Startup Studio model with the Dual Entity Model, a model designed to reduce the risk for investors dramatically.
That's why we have combined the Startup Studio model with the Dual Entity Model, a model designed to reduce the risk of us as investors dramatically.
Do you want to hear more?
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