The Difference Between Venture Studios and Startup Accelerators

Venture studios vs. Startup Accelerators

Venture studios build and fund startups from inception. 

  • Venture studios often incubate and validate their own ideas and then recruit founders or CEOs to take over. 
  • Venture studios often help build the initial product (MVP) and secure initial customers.
  • Venture studios often work on new startup opportunities for 6-12 months.
  • Venture studios typically do not run on a cohort-based model.

Startup accelerators provide mentorship & support to existing startups.

  • Startup accelerators work with existing startups, typically at an early stage, although some accelerator programs also work with later stage companies.
  • Startup accelerators also typically invest capital, but not all of them do.
  • Startup accelerators are often 3 months in length, with a primary focus on raising additional capital.
  • Startup accelerators are cohort-based and focus on education and content to support startups in their program.
  • Startup accelerators typically culminate in a Demo Day event where startups pitch to a group of investors.

Without question there’s considerable variety in both venture studios and startup accelerators. For example, Highline Beta has designed and supported corporate pilot accelerator programs with AB InBev, AD Stretch and others, in order to help them partner effectively with startups. We’ve also collaborated with corporate partners such as RBC, Westfield Insurance and others to build corporate venture studios that don’t spin-out new startups but build meaningful ventures that go beyond the core.

Venture studios typically take more equity than accelerators, but also provide more hands-on support. This is case by case, and founders or CEOs that are exploring both options need to look at the individual programs carefully. For example there are programs, such as Antler, that straddle the line between venture studio and accelerator. Antler brings potential founders together to explore new ideas (which is more like a venture studio), but they operate a 3-month cohort-based education program (which is more like an accelerator).

Both venture studios and startup accelerators may be industry-specific or vertically-focused. For example, Highline Beta worked with Aviva on a corporate pilot accelerator program focused on road safety. OSS Ventures is a great example of a vertical venture studio focused on factory operations.

It’s possible for a startup to be created in a venture studio and then join an accelerator program, although it’s rare. Strategically there may be benefits to doing so, depending on what the venture studio and accelerator offer. For example, an accelerator may help a startup expand its network of customers and investors, or reach into a new geography.

10 Questions Founders Should Ask About Venture Studios and Accelerators

Founders exploring venture studios and startup accelerators need to look at what’s being offered and decide on the best fit. Key questions that a founder should ask:

  1. How much capital is invested? Is there a possibility of follow-on capital? (Note: Studios may provide follow-on, accelerators typically do not)
  2. How much equity is taken and how is this structured?
  3. How long is the program and what are the expectations? (Note: Venture studios should be full-time, but some accelerators are part-time)
  4. What is offered in terms of mentorship and support? (This will vary a great deal between all studios and accelerators)
  5. Does the studio or accelerator help me build the product?
  6. Does the studio or accelerator help me recruit talent?
  7. Does the studio or accelerator help me acquire early customers?
  8. Does the studio or accelerator introduce me to a network of qualified investors?
  9. Why should I join your venture studio or accelerator? (Note: Venture studios and accelerators are effectively selling you, as a founder, on the opportunity!)
  10. What startups have emerged from your program successfully, and how do you define success?

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