Venture Studios: Beyond Entrepreneurial Support Organisations? A Case Study Analysis and Framework

We examine and discuss the rise of the Venture Studio phenomenon (also called Startup Studio), which is receiving increasing attention across the globe. Venture Studios promises to mitigate the high failure rates faced by new ventures by engaging earlier in the new venture creation process, contributing from ideation at pre-venture stage. Venture Studios generate business ideas, and then partner with external entrepreneurs to build and validate the new businesses. Despite their increasing prominence, little is known regarding the design choices, activities, and outcomes of Venture Studios, as well as how they differ from other established organisations such as incubators and accelerators. This research aims to fill this gap, by conducting an exploratory case study involving interviews with 14 Venture Studios in Italy. We introduce an I–P–O framework that provides a comprehensive set of design choices and activities that characterise Venture Studios. Findings reveal significant heterogeneity in design choices, indicating no one-size-fits-all approach. Despite this, consistency exists in their processes and entrepreneurial orientation. Second, we question the nature of Venture Studios as Entrepreneurial Support Organisations (ESOs), proposing that they represent a new category with a more active, co-founder-like role. This study also seeks to equip Venture Studio managers with a framework to understand and strategically navigate the diverse approaches within their field. Also, we offer insights to entrepreneurs, investors, and other stakeholders, enabling them to understand the functioning of this novel form of organisation.