Enterprises are working with venture studio to accelerate their technological advancement and business scale up to survive the COVID-19 pandemic. Still, many businesses are still foreign to the concept and wondering if the venture studio can actually help them.
What is a Venture Studio?
At first glance, a venture studio just seems like a different way of saying venture builder, which are firms that build startups through internal idea generation and concept validation, whilst pooling in team members and other resources to execute and spin off the new venture.
While it indeed does those things, Venture Studio can also provide Venture Building for corporations as a Service.
Why We Need Venture Studio?
It’s no longer the era of pursuing growth at all costs. Entrepreneurs and investors alike now prefer scalable businesses with sustainable unit economics in the long run. And innovation is not synonymous solely with startups anymore, but also the bigger and more established organisations lest they become dinosaurs and face the threat of extinction in this digital age.
To address the latter, the government is trying to encourage Singapore-based multinational corporations (MNCs) and large local enterprises (LLEs) in industries overseen by EDB* to support corporate venturing by working with venture studios.
How A Venture Studio Can Help Corporation
Startup Venture Studio enables corporations with a full suite of capabilities to bypass the typical silos of development, thus accelerating the corporate venturing process within a 6-month sprint. This allows sustainability against unexpected disruption while ensuring the ability to compete with other tech giants in the same industry.
Additionally, Venture Studios also combines the best of both worlds where it cultivates better entrepreneurship and provides them the necessary stability of a team and resources from corporations.
Through the model, Singapore can enrich it’s corporate ecosystem with startup innovation and battle against the effect of Covid on the economy and investment landscape.
What Is EDB’s Corporate Venture Launchpad?
The Economic Development Board (EDB)’s Corporate Venture Launchpad is a 6-month programme, designed to facilitate the connection between qualified venture studios and MNCs/LLEs. Through this, corporates will be able to work alongside subject matter experts for:
- In-depth validation of venture concept(s), investable business plan and venture launch pipeline.
- Co-funding for qualifying costs of each concept validation sprint.
- Facilitating and developing venture-building capabilities for corporations.
- Potential co-investment support by EDB New Ventures for ventures launched from this programme.
For corporations that want to join the venture launchpad, you can find out detailed information here.
EDB’s Corporate Venture Launchpad Sprint process
Stage 1 – Idea Generation
Ideas, and how they are discovered, created, evaluated and developed, are seen as a core element of entrepreneurship. Starting with opportunities mapping and corporation advantages assessment, Venture Studios help shorten significantly the process of idea generation for business.
At this stage, venture studios and corporations will focus on narrowing down ideas for validation.
Stage 2 – Concept Validation
Through their network and a specialized team, Venture Studios help conduct deep dive into customer needs and pain point validation to craft value propositions. This stage also involves the implementation of Proof of Concept, Prototyping and MVP to verify the feasibility.
In addition, businesses work alongside venture studios to build an investable business plan for their startup, including business model, go-to-market (GTM) strategy, market sizing, financials and resourcing tasks.
These are also the minimum requirements for sprint endpoint deliverables of EDB’s Corporate Venture Launchpad.
Stage 3 – Venture Launch Support
If corporations give the green light to set up and kick start the venture movement, EDB New Ventures will provide potential follow-on co-investment with access to industry networks, expertise and risk-sharing capital.
Venture Studio Is Here to Stay
Created by today’s business and funding climate, Venture Studio will increasingly be involved with helping large corporations navigate the concept of disruptive innovation, as well as the evolving market for entrepreneurial talent. It also plays a crucial role for economic sustainability as startups do not have to rely only on government or individual support.
Thus, as more corporations continue to enter the program, the benefits of venture studios will only continue to become the spotlight. After all, innovation will keep thriving but the economy remains resilient in the face of turbulence.