Venture studios build and fund startups from inception.
Startup accelerators provide mentorship & support to existing startups.
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.
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:
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