From Talent to Exit: Building Resilient Companies in the Next Innovation Cycle

The entrepreneurial landscape has never been more unforgiving. With 90% of startups failing and 75% of venture-backed companies not making it, the path from talent acquisition to successful exit requires more than just innovative ideas, it demands strategic resilience. As we navigate an era defined by rapid technological change, economic uncertainty, and evolving workforce expectations, building companies that can weather storms while maintaining growth momentum has become the ultimate competitive advantage.

The New Reality of Business Survival

The statistics paint a sobering picture of modern entrepreneurship. 10% of startups fail in the first year, while first-time founders have only an 18% success rate. However, these numbers tell only part of the story. The companies that survive and thrive share common characteristics: they build resilience into their DNA from day one.

Consider the tale of two companies launched in 2020. Company A, a fintech startup, secured $10 million in Series A funding but burned through capital quickly, focusing solely on user acquisition without building sustainable revenue streams. 75% of fintech startups fail despite venture backing, and Company A became part of this statistic within 18 months. Company B, an AI-driven logistics platform, raised similar funding but allocated 40% of resources to talent development and operational resilience. Today, Company B is preparing for its Series C round, having weathered supply chain disruptions and market volatility.

The Talent Foundation: More Than Just Hiring

Building resilient companies starts with reimagining talent strategy. Organizations face a critical shortage of talent and skills, making traditional hiring approaches insufficient. Resilient companies focus on three pillars: acquisition, development, and retention.

• The acquisition phase requires precision targeting. Netflix's approach exemplifies this, they hire for cultural fit and adaptability, not just technical skills. Their famous "keeper test" ensures every hire strengthens organizational resilience. During the 2022 subscriber crisis, Netflix's talent-first approach enabled rapid pivoting to ad-supported tiers and password-sharing monetization.

• Development comes next. Amazon's Career Choice program, investing $700 million in employee upskilling, demonstrates how talent development creates competitive moats. By 2024, companies investing in continuous learning report 23% higher revenue growth and 18% better employee retention rates.

• Retention strategies have evolved beyond traditional benefits. Organizations face a critical decision: redefine retention or risk irrelevance. Modern retention focuses on psychological safety, career mobility, and purpose alignment. Google's Project Aristotle revealed that psychological safety, not talent density, predicts team performance. Companies implementing this insight see 35% lower turnover rates.

Innovation Cycles: Adapting to Accelerating Change

The next innovation cycle differs fundamentally from previous ones. While past cycles lasted 7-10 years, current cycles compress to 3-5 years. This acceleration demands new organizational capabilities.

• Resilient companies embrace "innovation optionality", maintaining multiple strategic bets simultaneously. 3M's famous 15% time policy, allowing employees to pursue passion projects, generated Post-it Notes and countless other innovations. Modern versions include Atlassian's ShipIt days and Shopify's hack days, creating structured chaos that sparks breakthrough innovations.

• The key is balancing exploration with exploitation. McKinsey research shows that companies allocating 70% of innovation resources to core improvements, 20% to adjacent opportunities, and 10% to transformational bets achieve optimal returns. This 70-20-10 rule provides a framework for navigating uncertainty while maintaining growth.

Building Operational Resilience

Operational resilience extends beyond risk management, it's about creating antifragility. Companies that strengthen under stress rather than merely surviving it.

• Supply chain resilience exemplifies this principle. When COVID-19 disrupted global logistics, companies with diversified supplier networks and flexible manufacturing capabilities thrived. Zara's agile supply chain, capable of design-to-shelf cycles in two weeks, enabled rapid adaptation to changing consumer preferences during lockdowns.

• Financial resilience requires different thinking. Traditional metrics focus on efficiency, maximizing returns while minimizing costs. Resilient companies optimize for adaptability, maintaining cash reserves and flexible cost structures. Salesforce's variable expense model, where 60% of costs scale with revenue, provided crucial flexibility during economic downturns.

• Technology resilience involves building systems that improve with stress. Netflix's chaos engineering, deliberately introducing failures to strengthen systems, exemplifies this approach. Their Chaos Monkey randomly terminates production instances, forcing engineers to build fault-tolerant architectures.

The Path to Successful Exit

Successful exits require strategic preparation years in advance. Companies achieving premium valuations share common characteristics: predictable revenue streams, scalable operations, and strong leadership teams.

• Revenue predictability attracts acquirers and investors. SaaS companies with 90%+ gross retention rates command valuation multiples 2-3x higher than those with 80% retention. HubSpot's focus on customer success, not just acquisition, drove their successful IPO and continued growth.

• Scalable operations demonstrate growth potential. When Zoom's daily users jumped from 10 million to 300 million during COVID-19, their scalable architecture handled the load without major outages. This operational resilience contributed to their $100+ billion valuation peak.

• Leadership team strength often determines exit success. When WhatsApp sold to Facebook for $19 billion, investors cited the founding team's product vision and execution capability as key factors. Building leadership bench strength through succession planning and knowledge transfer creates sustainable value.

Data-Driven Resilience Strategies

Modern resilience requires data-driven decision making. Companies leveraging analytics for resilience planning show 15% better crisis performance than those relying on intuition alone.

• Predictive analytics identify potential disruptions before they occur. UPS's ORION system, analyzing millions of delivery routes daily, reduces fuel consumption by 10% while improving delivery reliability. This operational intelligence provides competitive advantages during fuel price volatility.

• Real-time monitoring enables rapid response. Tesla's over-the-air updates demonstrate how continuous monitoring and remote capabilities create resilience. When battery issues emerged in certain Model S vehicles, Tesla pushed software updates preventing thermal runaway, avoiding costly recalls and maintaining brand trust.

The Future of Resilient Companies

As we look toward the next innovation cycle, several trends will shape resilient company building. Artificial intelligence will augment human capabilities, requiring new talent strategies. Remote-first organizations will need different culture-building approaches. Sustainability will become a business imperative, not just a marketing message.

The companies that thrive will be those that embed resilience into their fundamental operating principles. They'll attract talent by offering purpose and growth, not just compensation. They'll innovate continuously while maintaining operational excellence. They'll prepare for exits by building sustainable value, not just chasing valuations.

Final Thoughts 

Building resilient companies isn't just about surviving the next crisis, it's about creating organizations that strengthen through adversity, adapt to change, and deliver exceptional value to all stakeholders. In an era of accelerating change, resilience isn't just a competitive advantage, it's the foundation for sustainable success.

The path from talent to exit has never been more challenging, but the rewards for those who master resilience have never been greater. The question isn't whether disruption will come, it's whether your company will be ready to thrive when it does.

5 Key Mistakes to Avoid When Scaling a Startup Inside a Venture Studio

Venture studios are rapidly becoming a go-to model for startup creation and scaling, offering entrepreneurs a structured environment with shared resources, expert teams, and strategic support. However, despite the advantages, scaling a startup within a venture studio presents unique challenges. Founders who misunderstand the dynamics or misstep in key areas risk slowing their growth, or worse, failing altogether.

In this article, we explore five critical mistakes startups often make when scaling inside a venture studio and how to avoid them.

1. Misaligning Vision Between Founders and the Studio

One of the foundational pillars of success in a venture studio model is alignment. Venture studios typically originate the idea or co-create it alongside entrepreneurs. If the startup’s leadership and the studio’s core team are not aligned on the long-term vision, mission, or go-to-market strategy, internal friction can derail progress.

Solution:
Ensure early and continuous communication about expectations. Discuss roles, equity, timelines, and exit goals upfront. Co-founders should be deeply involved in the decision-making process and feel empowered, not like hired operators. Regular strategy syncs can prevent misalignment and reinforce a shared sense of ownership.

2. Overreliance on Shared Resources

One of the biggest benefits of venture studios is access to shared talent: engineers, designers, marketers, legal advisors, and more. However, startups can become overly reliant on these resources without developing their own internal capabilities. This can lead to a bottleneck as the startup grows, especially when the studio has multiple ventures demanding attention from the same team.

Solution:
Use the shared resources as a launchpad, not a crutch. From the beginning, identify which capabilities need to be internalized as you scale. Start planning for key hires early, especially in product development, sales, and customer success. Think about your independence roadmap.

3. Failing to Establish a Clear Identity

Venture studio startups often struggle with branding and positioning, especially if their identity remains too closely tied to the parent studio. Investors, partners, and even customers might see the startup as a studio project, not a standalone business with its own mission and market.

Solution:
Invest in brand differentiation. Even though you're born inside a studio, the startup should develop a distinct tone, voice, mission, and visual identity. Focus on storytelling from day one: who are your customers, what problem are you solving, and why are you uniquely positioned? Your identity should resonate outside the studio bubble.

4. Ignoring External Market Signals

Being within a venture studio often gives founders a strong internal feedback loop, mentors, fellow founders, and studio advisors. But relying too heavily on internal validation can insulate the startup from real-world signals. Scaling requires deep market traction, customer validation, and constant iteration based on real usage, not assumptions.

Solution:
Get outside early and often. Talk to users. Validate hypotheses. Run lean experiments. Let customers be your compass. Studio guidance is important, but external traction is what validates whether your business is ready to grow. Don’t skip early-stage testing just because you have access to resources.

5. Structuring Equity Poorly for Long-Term Incentives

Cap table structure can be tricky in a venture studio. Since the studio often takes a significant equity stake early on, founders and future hires might feel diluted from the beginning. If this isn’t managed well, it can hurt morale and make future fundraising difficult.

Solution:
Be strategic and transparent about the cap table. Balance studio equity with founder motivation and talent acquisition needs. Keep enough equity reserved for future employees. Be clear with early investors about the studio model and why it creates value. Build flexibility into the structure to evolve as the startup scales.

Final Thought

Scaling a startup inside a venture studio offers unmatched advantages, speed, support, and shared expertise. But it also requires intentionality and awareness of potential pitfalls. By aligning with the studio on vision, avoiding overdependence on shared resources, establishing a distinct identity, listening to the market, and managing the cap table wisely, founders can turn the venture studio environment into fertile ground for sustainable growth. Like any startup path, success lies in the execution, and in the ability to learn from missteps before they become barriers.

The Liquidity Question: Why It Matters Earlier Than You Think

Liquidity is often an afterthought, until it isn’t. Businesses, investors, and even individuals frequently overlook its importance The Liquidity Question: Why It Matters Earlier Than You Think

Liquidity is the financial world's silent guardian, invisible when present, catastrophic when absent. While most businesses and individuals focus on growth, returns, and profitability, they often overlook the fundamental lifeline that determines survival: the ability to convert assets into cash quickly without significant loss. This oversight has toppled Fortune 500 companies, devastated investment portfolios, and left countless individuals financially stranded.

Understanding liquidity isn't just about financial prudence, it's about recognizing that cash flow, not profit margins, determines who survives economic storms. From corporate giants to individual households, those who master liquidity management thrive while others merely survive, if at all.

The Silent Assassin of Profitable Businesses

The business graveyard is littered with companies that were profitable on paper but failed due to liquidity crises. A comprehensive study by the U.S. Bank revealed that 82% of business failures stem from poor cash flow management, not inadequate profitability. This statistic exposes a fundamental misconception: that revenue equals resilience.

Case Study: The Toys "R" Us Tragedy

Toys "R" Us exemplifies this principle perfectly. In 2017, the retail giant, with $11.5 billion in annual revenue and a dominant market position, filed for bankruptcy. The culprit wasn't declining toy sales or e-commerce competition alone, but rather the company's inability to service its $5 billion debt load amid deteriorating liquidity. The company had tied up capital in inventory and real estate while carrying unsustainable debt obligations, leaving no cushion for operational flexibility.

The lesson is stark: profitability without liquidity is a house of cards. Revenue can mask underlying financial vulnerabilities until external pressures, economic downturns, supply chain disruptions, or unexpected expenses, expose the truth.

The Working Capital Trap

Many businesses fall into the working capital trap, where success breeds failure. Rapid growth often requires increased inventory, extended payment terms to customers, and upfront investments in infrastructure. Without careful liquidity management, growing companies can become victims of their own success, unable to fund operations despite impressive sales figures.

Personal Finance: The Emergency Fund Imperative

The liquidity crisis extends beyond corporate boardrooms to kitchen tables across America. Federal Reserve data reveals that 37% of Americans cannot cover a $400 emergency expense with cash, forcing them into high-interest debt cycles that compound financial instability.

The 3-6 Month Rule: Your Financial Lifeline

Financial advisors universally recommend maintaining 3-6 months of living expenses in liquid assets, cash, savings accounts, or short-term bonds. This buffer serves multiple purposes:

• Prevents forced asset liquidation: Avoids selling stocks, property, or other investments during market downturns

• Maintains credit health: Reduces reliance on credit cards or loans during emergencies

• Preserves opportunities: Enables strategic moves like career changes or investment opportunities

The Psychological Dividend

Beyond financial protection, liquidity provides psychological benefits. Research from the University of Pennsylvania shows that individuals with emergency funds report lower stress levels and greater life satisfaction, even when controlling for income levels. Liquidity isn't just about money, it's about peace of mind.

Market Liquidity: The Investor's Ultimate Insurance

Investment liquidity separates seasoned investors from amateurs. While illiquid assets like real estate and private equity can generate substantial returns, they can also trap capital when liquidity is most needed.

The 2008 Financial Crisis: A Masterclass in Liquidity

The 2008 financial crisis provided a brutal education in liquidity's importance. Investors holding "valuable" mortgage-backed securities discovered that paper wealth means nothing if nobody will buy your assets. Meanwhile, those with cash reserves capitalized on the chaos.

The Numbers Tell the Story:

• The S&P 500 plummeted 57% from peak to trough (2007-2009)

• Investors with liquidity who purchased undervalued stocks generated returns exceeding 300% during the recovery

• Real estate investors with cash bought distressed properties at 30-50% discounts

The Liquidity Premium

Warren Buffett's Berkshire Hathaway consistently maintains massive cash reserves, often criticized as "inefficient" by analysts. Yet this strategy enabled Berkshire to acquire quality companies at discounted prices during the 2008 crisis and the 2020 pandemic. The "liquidity premium”, the cost of holding cash versus investing, pales in comparison to the opportunities liquidity creates during market dislocations.

Corporate Liquidity Metrics: Reading the Warning Signs

Businesses measure liquidity through several key ratios that reveal financial health:

Current Ratio (Current Assets ÷ Current Liabilities)

• Ideal Range: 1.5-3.0

• Interpretation: Measures ability to cover short-term obligations

• Warning Signs: Ratios below 1.0 indicate potential liquidity stress

Quick Ratio (Quick Assets ÷ Current Liabilities)

• Ideal Range: 1.0 or higher

• Interpretation: Excludes inventory, focusing on most liquid assets

• Critical Insight: More conservative than current ratio, better for cyclical businesses

Apple's Liquidity Mastery

Apple provides a masterclass in liquidity management. Despite a current ratio of 0.94 (seemingly concerning), the company maintains over $166 billion in cash and marketable securities. This strategic liquidity enables Apple to:

• Fund massive R&D investments without external financing

• Acquire companies and technologies opportunistically

• Weather economic downturns without operational disruption

• Return capital to shareholders through dividends and buybacks

 The Liquidity Optimization Framework

For Businesses:

• Cash Reserve Strategy: Maintain 3-6 months of operating expenses in liquid assets. This provides operational flexibility and creditor confidence.

• Credit Line Management: Establish revolving credit facilities before needing them. Banks prefer lending to healthy companies, not distressed ones.

• Receivables Management: Implement aggressive collection policies and consider factoring for immediate cash flow.

• Inventory Optimization: Use just-in-time inventory systems to minimize working capital requirements.

 For Individuals:

• Emergency Fund Construction: Build systematically, start with $1,000, then progress to one month's expenses, eventually reaching 3-6 months.

• Asset Allocation Balance: Avoid overconcentration in illiquid assets. Even real estate investors should maintain liquid reserves.

• Liquid Investment Vehicles: Utilize money market funds, short-term CDs, and high-yield savings accounts for emergency funds.

• Debt Management: Minimize high-interest debt that can quickly erode liquidity during emergencies.

The Liquidity Mindset: Beyond Numbers

Liquidity management requires a fundamental shift in thinking, from maximizing returns to optimizing survival. This doesn't mean being overly conservative, but rather maintaining enough flexibility to navigate uncertainty.

The Opportunity Cost Fallacy

Critics often argue that holding cash is "inefficient" due to opportunity costs. However, this perspective ignores liquidity's option value, the ability to act decisively when opportunities arise. During market crashes, recessions, or personal emergencies, liquidity isn't just protective, it's transformative.

Building Financial Resilience

True financial success isn't measured solely by net worth growth but by the ability to maintain stability across various economic conditions. Liquidity provides the foundation for this resilience, enabling individuals and businesses to not just survive but thrive during challenging periods.

Final Thoughts 

Liquidity isn’t just a financial metric, it’s a survival tool. Whether you’re a business owner, investor, or individual, prioritizing liquidity early prevents desperation later.  

As Warren Buffett famously said:  

"Cash is to a business as oxygen is to an individual: never thought about when it is present, the only thing in mind when it is absent."

Don’t wait until the oxygen runs out. 

How to Structure a Cap Table When Building with a Studio

In the fast-evolving world of startups, Venture Studios are becoming a powerful model for company building. Unlike accelerators or incubators, studios co-create startups from the ground up, offering resources, teams, and capital in exchange for equity. As more founders choose to build with studios, one question consistently emerges: how should the cap table be structured?

A well-balanced cap table (short for capitalization table) is not just about equity allocation, it’s a reflection of trust, clarity, and shared incentives between founders, studios, and future investors. In this article, we break down how to approach cap table structuring when launching a startup within a venture studio model.

Understanding the Studio-Startup Relationship

Venture studios usually initiate the idea, assemble the initial team, and contribute significant capital, operational support, and strategic guidance. As such, their role is much deeper than that of a passive investor. Their equity share often reflects this heavier involvement in the early stages.

Startups built with studios typically go through the following early stages:

1. Ideation & Validation – The studio identifies a market gap and develops a viable solution.

2. Team Formation – A founding team is recruited, often led by the studio.

3. MVP Development – Resources like engineering, legal, and marketing are provided.

4. Spinout & Fundraising – Once validated, the startup spins out and raises external capital.

Each of these stages affects the cap table, especially how equity is allocated between the studio, founders, and early team members.

Common Cap Table Structures in Studio Models

Although there’s no one-size-fits-all formula, most cap tables in studio-born startups follow a similar pattern during the spin-out phase:

1. Studio Equity (20%–60%)

Studios generally take a larger equity stake than a traditional investor due to their active role in the company’s creation. This stake typically ranges between 30% and 50%, depending on how much the studio contributed in terms of capital, resources, and risk.

Some models may go as high as 60% in early concept-phase startups, especially where the studio also provides the CEO or core leadership team. Over time, as the startup raises capital and scales, the studio’s ownership usually dilutes.

2. Founding Team Equity (20%–50%)

Founders joining a studio venture may receive 20% to 40% equity, depending on when they join and what responsibilities they take on. A technical co-founder joining post-MVP might receive less equity than one who joins at the ideation stage.

Founders often receive their equity through a vesting schedule, commonly over four years with a one-year cliff, aligning long-term commitment with ownership.

3. Employee Option Pool (10%–15%)

Like any startup, those born from studios need to attract and retain top talent. An option pool—typically 10% to 15% of the cap table, is reserved for employees, especially during the first fundraising round.

Early hires may receive larger chunks from this pool, particularly if they are taking on key operational or product roles in the earliest stages.

4. Investor Equity (5%–30%)

If the startup raises a pre-seed or seed round soon after spinning out of the studio, the new investors’ equity will also need to be accounted for. Early-stage VCs or angel investors may take 5% to 20% depending on the round size and valuation.

This dilutes all existing shareholders, including the studio and founders. Planning for this early ensures the cap table remains fair and balanced post-investment.

Best Practices for Cap Table Planning

● Model Scenarios Early

Before finalizing equity splits, it’s crucial to model various scenarios: What happens if you raise multiple rounds? What if key founders leave early? Having these projections gives clarity and avoids surprises.

● Align Equity with Value Added

The cap table should reflect the actual value contributed. A studio that provides engineers, designers, and growth experts deserves a larger stake than one offering only desk space and mentorship. Likewise, founders driving product and sales should be fairly compensated.

● Use Vesting and Cliff Periods

To ensure long-term commitment, both studios and founders often use vesting schedules. A typical 4-year vesting with a 1-year cliff protects the company from early departures and ensures equity is earned over time.

● Create Clear Operating Agreements

Equity is only one part of the relationship. Make sure legal documents (like operating agreements, term sheets, and founder agreements) clearly outline roles, responsibilities, and equity terms. Transparency builds trust.

How to Think About Studio Involvement Over Time

One unique aspect of cap tables in studio-led startups is the evolving role of the studio. In early stages, the studio is hands-on. But as the founding team grows, external funding is raised, and operations scale, the studio often steps back.

Some studios gradually reduce involvement or maintain board-level influence. This transition should be planned in advance and reflected in vesting or advisory agreements.

Conclusion

Structuring a cap table with a venture studio requires balancing contributions, expectations, and future growth potential. While studios may take a significant early stake, the cap table must remain attractive for future investors and fair to founders who take on operational leadership. By modeling scenarios, aligning value with equity, and using legal clarity, startups can ensure their cap table empowers, not hinders, their long-term success.

As venture studios continue reshaping how startups are born, a thoughtful approach to equity is essential. A well-structured cap table is not just a spreadsheet, it’s a roadmap for shared ownership, mutual accountability, and startup resilience.

AI Startups in PE/VC: Overhyped or Underestimated?

The question of whether AI startups are overhyped or underestimated reveals the fundamental misunderstanding permeating today's investment landscape. Rather than a monolithic sector deserving uniform skepticism or enthusiasm, artificial intelligence represents a complex ecosystem where speculative excess coexists with profound undervaluation. The answer depends entirely on which corner of this vast landscape you examine, and whether you possess the analytical sophistication to distinguish between genuine innovation and cleverly marketed incrementalism.

The Theater of Hype: Where Valuations Defy Gravity

The most visible AI investments often represent the sector's most theatrical performances, where billion-dollar valuations rest on foundations of promise rather than profit. Foundation model companies have captured public imagination and investor capital in equal measure, creating a feeding frenzy that bears an uncomfortable resemblance to previous technology bubbles. These companies command valuations that would make even the most optimistic dot-com investor blush, justified by narratives of artificial general intelligence and revolutionary transformation that remain tantalizingly out of reach.

The application layer presents an even more concerning spectacle of speculation. Countless startups have discovered that adding "AI-powered" to their pitch decks can multiply valuations overnight, regardless of underlying differentiation or sustainable competitive advantages. This phenomenon, dubbed "AI washing" by skeptics, has created a parallel universe where traditional business fundamentals seem quaint and outdated. Consumer-facing AI applications, in particular, have attracted enormous attention despite demonstrating unit economics that would terrify any rational investor operating under normal market conditions.

The Hidden Gems: Where Value Hides in Plain Sight

While headlines fixate on ChatGPT valuations and artificial general intelligence timelines, the most compelling AI investments often operate in the shadows of public attention. Infrastructure companies building the foundational layers of AI deployment represent a dramatically different investment proposition, one characterized by rational valuations, sustainable business models, and defensive competitive positions. These businesses provide the essential plumbing that enables AI deployment at scale, creating platform effects that become more valuable as adoption accelerates.

The vertical AI revolution represents perhaps the most underestimated opportunity in the entire technology landscape. Healthcare AI companies developing FDA-approved diagnostics, financial services firms solving compliance challenges, and manufacturing solutions delivering measurable productivity improvements demonstrate the transformative power of artificial intelligence applied to specific domain problems. European and Asian markets present particularly compelling arbitrage opportunities, where comparable companies trade at significant discounts to American counterparts despite similar growth trajectories and market positions. 

The Sophistication Gap: Why Traditional Frameworks Fail

The challenge facing AI investors extends far beyond simple valuation metrics to encompass fundamental questions about how technological revolutions should be evaluated and financed. Traditional venture capital frameworks, optimized for software businesses with predictable scaling characteristics, struggle to accommodate AI companies' unique cost structures, competitive dynamics, and value creation mechanisms. The result is systematic mispricing that creates both dangerous bubbles and extraordinary opportunities.

Revenue quality emerges as the critical differentiator in this landscape, where two companies with identical top-line growth can justify vastly different valuations based on underlying business model sustainability. Companies achieving platform effects through network externalities, regulatory moats, or proprietary data advantages deserve premium valuations regardless of sector sentiment. Conversely, businesses relying on commodity APIs or consumer adoption without clear monetization paths face inevitable margin compression as market dynamics normalize.

Sector Dynamics: The Tale of Three Markets

Healthcare AI presents the strongest case for systematic underestimation, where regulatory approval processes create natural monopolies and clear value propositions for end customers. The sector's focus on patient outcomes rather than engagement metrics provides sustainable differentiation that pure software companies cannot replicate. FDA breakthrough device designations create competitive advantages measured in years rather than months, while clinical trial data establishes barriers to entry that algorithmic improvements alone cannot overcome.

Financial services AI benefits from regulatory tailwinds as compliance requirements favor established players with deep domain expertise. These companies operate in environments where switching costs are measured in years and relationship-driven sales cycles create additional defensive characteristics. The sector's high-stakes nature means that marginal improvements in fraud detection, risk management, or compliance efficiency can justify substantial technology investments, creating sustainable demand for proven solutions.

Investment Philosophy: Threading the Needle

The AI investment landscape demands portfolio construction that captures legitimate opportunities while avoiding speculative excess. This requires moving beyond binary thinking about sector-wide overvaluation or undervaluation toward company-specific analysis of competitive positioning, market dynamics, and business model sustainability. The most successful investors will be those who can identify genuine innovation amid the noise of marketing hyperbole and venture capital momentum.

Risk management becomes paramount in an environment characterized by extreme volatility and regulatory uncertainty. Scenario planning must incorporate potential AI winter scenarios where speculative investments face significant corrections, while defensive positions in infrastructure and vertical applications provide portfolio stability. Geographic diversification across America, European, and Asian markets helps capture regional arbitrage opportunities while reducing concentration risk in any single regulatory environment.

The temporal dimension adds another layer of complexity, as AI capabilities continue advancing at unprecedented rates while market valuations gyrate wildly based on sentiment and speculation. Patient capital willing to invest through multiple hype cycles will likely be rewarded, while those seeking quick exits may find themselves trapped in valuation bubbles that burst without warning.

Final Thoughts 

The AI investment landscape defies simple categorization as either overhyped or underestimated because it encompasses multiple distinct markets with fundamentally different characteristics and risk profiles. Consumer applications and foundation models trading at extreme multiples clearly exhibit speculative characteristics, while infrastructure companies and vertical AI solutions demonstrate rational valuations based on sustainable business models. The sector's complexity requires sophisticated analysis that moves beyond aggregate funding metrics toward nuanced evaluation of competitive advantages and market positioning. 

Why Corporates Are Launching Their Own Venture Studios

In today’s fast-paced innovation landscape, large corporations are realizing that traditional R&D methods are no longer sufficient to keep up with disruptive startups. As a result, many are turning to venture studios, a powerful model that combines capital, strategic support, and entrepreneurial talent to build new businesses from scratch. But why exactly are corporates launching their own venture studios, and what outcomes are they expecting?

Let’s explore how this shift is reshaping corporate innovation across Europe and beyond. 

What Is a Corporate Venture Studio?

A corporate venture studio (CVS) is an in-house or partnered entity that helps corporates build and launch startups aligned with their long-term strategic goals. Unlike accelerators or incubators that support external founders, a CVS usually creates startups internally, recruits entrepreneurs, and co-owns the ventures.

By leveraging internal resources (capital, data, customer base, infrastructure) and combining them with startup speed and culture, venture studios give corporates a faster, more agile way to explore new markets, technologies, and business models.

Why the Shift to Venture Studios?

Here are five key reasons why corporates are launching venture studios:

1. Faster Innovation Cycles

Corporates typically suffer from bureaucracy and slow decision-making. Venture studios allow them to test and launch ideas in months, not years. Studios build multiple MVPs (minimum viable products), iterate quickly, and kill bad ideas early, much like startups.

This agile experimentation drastically reduces time-to-market and enables corporates to stay ahead of disruptors.

2. Strategic Diversification

Many industries, from insurance and banking to manufacturing and healthcare, are undergoing digital disruption. Corporates can’t afford to stand still. Launching a studio lets them diversify their business models and experiment with innovations outside of their core business, all while maintaining ownership and oversight.

3. Access to Entrepreneurial Talent

Attracting and retaining top entrepreneurial talent within a corporation is notoriously difficult. But a venture studio structure is appealing to founders who want to build, scale, and exit without starting completely from scratch. Corporates are using studios to recruit founders-in-residence, giving them equity, autonomy, and a clear runway to build new ventures.

4. De-risked Corporate Innovation

Studios are designed to fail fast and cheap. Instead of risking millions on a single product that may not fit the market, corporates can spread risk across multiple experiments. When one venture succeeds, it can produce significant ROI. If others fail, they offer learning at a much lower cost than failed internal projects.

This portfolio approach is much more efficient than traditional R&D or M&A strategies.

5. IP Ownership and Strategic Alignment

Unlike investing in external startups or using accelerators, a corporate venture studio allows the parent company to retain full or partial ownership of IP, build ventures that complement their core operations, and align innovation with long-term strategy. This gives them better control over growth areas and exit options.

Real-World Examples of Corporate Venture Studios

Across Europe and globally, several corporates have launched successful venture studios:

• Allianz X (Germany) – A venture arm of Allianz, focused on building and investing in startups in insurtech and beyond.

• Engie Factory (France) – The venture studio of energy giant Engie, which co-creates cleantech startups.

• BCG Digital Ventures (Global) – Although not a corporate itself, BCGDV partners with corporates to co-found and scale ventures that fit their strategic needs.

• Bosch Startup Harbour (Germany) – Focuses on IoT and connected products that can extend Bosch’s innovation capabilities.

• Telefonica Alpha (Spain) – Launched by telecom firm Telefonica to build moonshot tech companies.

These studios often have dedicated teams of product managers, engineers, marketers, and venture architects who operate semi-independently but are strategically aligned with the parent company’s goals.

How Corporate Venture Studios Work

The typical CVS model includes the following steps:

1. Opportunity Identification: Studios analyze trends, gaps, and strategic goals to define promising venture ideas.

2. Venture Design: Teams prototype business models, develop MVPs, and test market traction.

3. Recruitment of Founders: Studios bring in experienced operators or domain experts to lead the startup.

4. Funding & Incubation: The corporate funds the startup’s early stages and provides access to distribution channels, customers, and infrastructure.

5. Spin-Out or Integration: If successful, the startup can either become a standalone company (with shared equity) or be integrated back into the corporate entity.

Common Challenges

Despite the potential, corporate venture studios face some pitfalls:

• Cultural Clashes: Corporate risk-aversion can conflict with the startup mentality.

• Decision-Making Bottlenecks: Too much red tape can slow progress.

• Talent Drain: Retaining entrepreneurial talent after a spin-out can be tough.

• Unclear Exit Plans: Without a clear commercialization or M&A strategy, studios risk building “zombie” startups that don’t scale.

That’s why successful studios build strong governance, KPIs, and incentives from the beginning.

Final Thought

As markets continue to evolve and competition intensifies, corporates can no longer rely solely on internal R&D or passive venture investments. Launching a venture studio offers a powerful way to own the innovation process, unlock new revenue streams, and drive cultural transformation.

For corporates serious about long-term growth, building a venture studio is no longer a luxury, it’s a strategic necessity.

3 Reasons Why LPs Should Look at Studio Models in 2025

The venture capital landscape is experiencing a seismic shift. With traditional VC funds struggling to deliver consistent returns and Limited Partners (LPs) facing unprecedented challenges in deploying capital effectively, a new model is emerging as a compelling alternative: venture studios. As we navigate through 2025, the data tells a clear story, venture studios are not just outperforming traditional investment models, they're redefining what institutional investors should expect from their venture allocations.

1. Superior Returns and Risk-Adjusted Performance

The numbers don't lie: venture studios are delivering exceptional results that should make every LP take notice. Venture studios demonstrate Internal Rates of Return (IRR) that are approximately double those of traditional venture capital benchmarks, with a 24% exit rate compared to just 14% for both accelerators and founders-first VCs. This outperformance becomes even more impressive considering speed to liquidity, studio startups are acquired 33% faster and take 31% less time to IPO.

The systematic approach delivers consistent results: 84% of studio startups raise seed rounds and 72% reach Series A funding, compared to just 42% of traditional ventures reaching Series A. Real-world success stories like Moderna, Twilio, and Bitly demonstrate this isn't coincidence but systematic value creation. For LPs grappling with poor distributions from traditional VC funds, less than 10% of 2021 funds have had any DPI after 3 years, venture studios offer a proven alternative with both higher returns and faster liquidity events.

2. Accelerated Time-to-Market and Capital Efficiency

The venture studio model delivers unprecedented speed and capital efficiency, with startups reaching Series A in just 25.2 months compared to industry averages. This acceleration stems from studios' systematic approach, proactively identifying opportunities, assembling expert teams, and providing comprehensive operational support from day one, eliminating the founder learning curve that typically consumes years and millions. The operational leverage is particularly evident in AI-driven markets, allowing studios to deploy cutting-edge infrastructure across their entire portfolio simultaneously. 

3. Market Momentum and Strategic Positioning for the Future

The institutional investment landscape is rapidly shifting toward venture studios, positioning early LP adopters for significant advantages. In 2024, venture studio funds were nearly twice as common as accelerator funds, accounting for 10.3% of all venture capital funds launched compared to 5.5% for accelerators.

This trend reflects a broader recognition among sophisticated investors that the traditional VC model faces structural challenges. VC fundraisers raised $76.1 billion in 2024, making it the lowest fundraising year since 2019, while only 30% of Limited Partners (LPs) are looking to add VC managers to their portfolios, down 36 points from previous years. The shift represents more than just performance metrics, it's about alignment and control. Traditional VC funds face inherent conflicts between generating management fees and optimizing portfolio returns. Venture studios, by contrast, earn equity through direct value creation and capital investment, aligning their interests more closely with LP returns.

Final Thoughts 

The venture capital industry stands at an inflection point, with traditional models struggling to deliver consistent returns in today's fast-paced, technology-driven market. Venture studios represent a fundamental reimagining of how institutional capital can be deployed, offering LPs superior risk-adjusted returns, faster liquidity, and strategic positioning for the future backed by robust data and proven track records. The question isn't whether venture studios will continue to outperform traditional VC models, the data already confirms this reality, but whether LPs will recognize this shift early enough to capture the significant alpha still available. As we progress through 2025, the LPs who embrace venture studios today will likely look back on this decision as a defining moment that positioned them at the forefront of the next generation of venture capital.

Studio vs Accelerator: Which Model Drives Better Founder Outcomes?

In the fast-evolving startup ecosystem, founders face a fundamental question: Should I launch my startup through a venture studio or an accelerator? Both models offer unique advantages, but they cater to different founder profiles and startup stages.

This article explores the key differences between venture studios and accelerators, and which model ultimately delivers better outcomes for founders.

What Is a Venture Studio?

also known as a startup studio, company builder, or venture builder, is an organization that ideates, builds, and launches startups internally. Unlike accelerators that assist external startups, venture studios create their own concepts in-house, test them for market fit, and then recruit co-founders or CEOs to lead these ventures.

Key characteristics of venture studios include:

• Idea Generation: Studios develop startup ideas internally, based on market gaps, trends, and research.

• Validation: These ideas are tested and refined before any company is formally created.

• Founder Recruitment: Once the idea is validated, the studio brings on founders to execute and scale the startup.

• Infrastructure and Capital: The venture studio provides initial funding, legal support, design, product, HR, and technology resources, removing much of the early operational burden from founders.

This model allows founders to focus purely on execution with much less risk. Instead of starting from zero, they’re stepping into a machine that’s already moving, with a pre-validated idea, seed capital, and expert support.

What Is an Accelerator?

A startup accelerator supports early-stage companies through fixed-term programs that typically last between three and six months. Unlike venture studios, accelerators work with startups that already exist and have a founding team in place.

Features of accelerators include:

• Founders Apply With Their Own Idea or MVP: Startups need to be at the idea or product stage to be considered.

• Mentorship and Training: Accelerators offer guidance through workshops, networking, and mentor matching.

• Seed Funding: Participating startups receive small amounts of funding (e.g., $100K–$150K) in exchange for equity.

• Demo Day and Investor Access: At the end of the program, startups pitch to investors for future funding rounds.

Well-known examples include Y Combinator, Techstars, and 500 Startups. These programs often boost visibility and credibility, opening doors to venture capital and strategic partnerships.

Key Differences

Which Drives Better Founder Outcomes?

  For First-Time Founders: Venture Studios

Venture studios de-risk entrepreneurship. Founders join validated projects with funding, a support team, and a clear go-to-market strategy. This is ideal for:

• Domain experts (e.g., engineers, marketers) new to startups

• Entrepreneurs who want operational backing

• Those who prefer execution over ideation

 Example: Antler and eFounders in Europe have helped dozens of first-time founders build multi-million-dollar SaaS and fintech companies with minimal prior startup experience.

For Experienced Founders: Accelerators

Accelerators work best for founders who:

• Already have a clear idea or MVP

• Seek exposure, mentorship, and network effects

• Can leverage the accelerator’s brand to raise funding

Accelerators can supercharge momentum and lead to large seed or Series A rounds, especially in hot sectors like AI and fintech.

Example:Flutterwave (a leading African fintech unicorn) emerged from the Y Combinator accelerator and rapidly scaled after launch.

A Hybrid Approach?

Some founders even benefit from a hybrid approach: building with a studio, then joining an accelerator to scale and raise capital. As startup ecosystems mature, the lines between the two models are beginning to blur.

Final Thoughts

Both venture studios and accelerators have their place in the startup journey. The key is knowing your stage, strengths, and support needs.

If you need structure, capital, and deep operational support, studios are the way to go.
If you already have traction and seek funding and connections, accelerators will help you scale faster.

The best model for founders depends on their experience, the idea stage, and the kind of startup they want to build.

How We See the Future of Company Building at Mandalore Partners

At Mandalore Partners, we believe the future of company building is fundamentally different from what we've seen before. As we navigate through 2025, we're witnessing a paradigm shift that goes beyond traditional venture capital models, and we're positioning ourselves at the forefront of this transformation.

The old playbook of throwing capital at promising startups and hoping for exponential returns is not just outdated; it's counterproductive in today's complex business environment. We've observed that the most successful companies of the past five years weren't just well-funded, they were strategically guided, operationally supported, and deeply integrated into their target industries from day one.

Our Vision: Beyond Capital to Strategic Partnership

We've spent years observing the venture capital landscape, and frankly, we believe the traditional model is broken. The industry generated $149.2 billion in exit value in 2024, yet despite a $47 billion increase in overall deal value, we saw 936 fewer deals compared to the previous year. This tells us something profound: the market is demanding quality over quantity, strategic depth over transactional relationships.

At Mandalore, we see this as validation of our core thesis. The future belongs to companies that receive more than just capital, they need strategic expertise, operational support, and deep industry integration. This is why we've pioneered our Venture Capital-as-a-Service (VCaaS) model.

What We Mean by Venture Capital-as-a-Service

At Mandalore Partners, we don’t just write checks and step back, we embed ourselves as strategic partners through our VCaaS model, transforming how corporations build and scale innovation. Unlike traditional VCs, we stay hands-on from idea to market leadership, providing not only capital but deep regulatory expertise, industry networks, and operational insight. Our work with insurtech startups shows how this integrated approach turns potential into market dominance, proving that success hinges on more than just technology—it demands the right strategic guidance. With 93% of CEOs set to maintain or grow corporate venture investments in 2024, our model is exactly what forward-thinking companies need: a trusted partner to co-architect their future.

Our 6 Ss Framework: The Architecture of Success

We've developed what we call the 6 Ss model, our proprietary framework that has become the gold standard for successful company building in the modern era. This isn't theoretical; it's battle-tested across dozens of portfolio companies and multiple market cycles:

1.Strategy: We believe every successful company begins with a clear strategic vision aligned with market realities. Our data-driven approach ensures the startups we partner with address genuine market needs rather than pursuing solutions seeking problems.

2. Sourcing: We've built a global network and AI-powered sourcing capabilities that enable us to discover breakthrough technologies and visionary entrepreneurs before they become obvious opportunities. We're not followers, we are discoverers.

3. Scaling: Growth without foundation leads to failure. We provide operational expertise that helps companies build sustainable scaling mechanisms, from technology infrastructure to team development and market expansion strategies.

4. Synergy: We facilitate strategic partnerships that amplify growth potential and create competitive advantages. The most successful companies of the future will be those that create meaningful connections within their ecosystems.

5. Sustainability: Our investment thesis prioritizes companies building solutions for tomorrow's challenges. We consider long-term viability across financial, environmental, and social dimensions.

6. Success: We measure success not just in financial returns, but in creating lasting value for all stakeholders, entrepreneurs, corporations, and society at large.

How We're Leveraging Technology Convergence

We're particularly excited about the convergence of artificial intelligence, IoT, and robotics. These technologies aren't just changing how companies operate, they're fundamentally transforming how they're built.

Our portfolio companies are reimagining traditional industries through technological integration. We're backing robotics companies creating new paradigms for industrial automation and AI-powered startups revolutionizing risk assessment in insurance. What excites us most is witnessing the emergence of hybrid business models that combine digital innovation with deep industry expertise, creating defensible moats that traditional tech companies can't replicate.
This convergence represents more than technological advancement; it's the foundation of sustainable competitive advantage in the next decade.

Our Take on Market Corrections and Opportunities

The valuation corrections from 2021 highs have created what we see as unprecedented opportunities. While others view down rounds and unicorn devaluations as challenges, we see them as market efficiency improvements that favor strategic investors like us.

We're witnessing trends like co-investments, extensions, and significant valuation cuts, all of which play to our strengths as strategic partners who provide more than capital. When financial investors retreat, strategic value becomes even more important.

This market correction has also revealed something crucial: companies built on solid fundamentals with strong strategic partnerships weather economic storms better than those relying solely on financial backing. Our portfolio companies have demonstrated remarkable resilience during this period, with several achieving profitability ahead of schedule while their purely VC-backed competitors struggled with runway management.

What We Predict for the Next Decade

Based on our market position and portfolio insights, we see several key trends defining the next decade of company building:

• Ecosystem Integration: We believe successful companies will be those that seamlessly integrate into broader innovation ecosystems, creating value through partnerships rather than competition. This aligns perfectly with our VCaaS model. Companies that try to build everything in-house will find themselves outmaneuvered by those that strategically leverage ecosystem partnerships.

• Regulatory Proactivity: Companies that anticipate and shape regulatory frameworks rather than merely comply with them will gain significant competitive advantages. Our deep industry expertise positions us to help companies navigate this complexity. We've seen companies gain 18-month market advantages simply by understanding regulatory trends before their competitors.

• Stakeholder Capitalism: We're investing in companies that create value for all stakeholders, customers, employees, investors, and society, rather than optimizing for single metrics. This isn't just about ESG compliance; it's about building sustainable business models that can weather long-term market cycles.

• Global-Local Balance: Future companies will need to operate globally while maintaining deep local expertise and cultural sensitivity. Our network enables this balance, helping companies expand internationally while maintaining local market authenticity.

• AI-Human Collaboration: The future belongs to companies that enhance human capabilities rather than replace them. We're particularly excited about companies that use AI to augment human decision-making rather than automate it away entirely.

Our Competitive Advantage

What sets us apart is our unique position at the intersection of corporate strategy and entrepreneurial execution. We combine the best of corporate strategic thinking with entrepreneurial agility, creating sustainable competitive advantages for all stakeholders.

Our VCaaS model enables corporations to maintain focus on core operations while building breakthrough innovation capabilities. We're not just facilitating transactions, we're architecting the future of corporate innovation.

Why This Matters Now

The companies that will define the next decade are being built today. We're not just predicting this transformation, we're actively creating it through strategic partnerships with forward-thinking corporations and breakthrough technology companies.

Our approach transcends traditional venture capital limitations by creating a new category of value creation. We're building bridges between corporate resources and entrepreneurial innovation, enabling both to achieve outcomes neither could reach alone.

Our Commitment Moving Forward

At Mandalore Partners, we're committed to leading this transformation in company building. We're creating exceptional value for entrepreneurs, corporations, and society at large by reimagining how strategic capital, operational expertise, and market access can be combined.

The future of company building belongs to those who can successfully navigate the intersection of technology, strategy, and execution. We're not just participants in this evolution, we're architects of it.

Final Thoughts 

The venture capital industry is at a turning point, and Mandalore Partners is leading the way with a bold alternative to outdated, transactional investing. Through our Venture Capital as a Service (VCaaS) model, we combine the strategic resources of established corporations with the agility of innovative startups to create lasting value beyond traditional VC limitations. As markets demand quality, strategic depth, and sustainable growth, we’re building companies that leverage technology, industry expertise, and regulatory foresight to drive real impact. At Mandalore, we’re not just funding businesses, we’re designing the infrastructure for tomorrow’s economy. Join us to shape this transformation, not just react to it.

How Venture Studios Are Redefining Early-Stage Investment in Europe

In recent years, the European startup ecosystem has witnessed a quiet revolution,one led not by individual entrepreneurs or traditional venture capitalists, but by venture studios. Also known as startup studios, company builders, or venture builders, these organizations are fundamentally transforming how startups are launched, scaled, and funded.

From Berlin to Stockholm, venture studios are redefining early-stage investment by creating startups from scratch, combining operational expertise, in-house resources, and capital, and this model is gaining significant momentum across Europe.

What Is a Venture Studio?

A venture studio is a company that creates new startups. Unlike accelerators or incubators that support existing startups, venture studios build their own ventures. They identify business opportunities internally, develop prototypes, and assemble teams to lead the new companies.

They typically provide:

• Business ideas

• Early-stage funding

• Design and development resources

• Marketing and go-to-market strategies

• Recruitment of founding teams

The goal is to reduce startup risk and increase the chances of success by providing hands-on support from day one.

The Rise of Venture Studios in Europe

While the model originated in the U.S. (with pioneers like Idealab and Rocket Internet), Europe has rapidly embraced the venture studio approach, adapting it to local contexts.

Some notable venture studios in Europe include:

• Founders Factory (UK)

• Antler (Pan-European)

• eFounders (France & Belgium)

• Zebra Labs (Germany)

• Rainmaking (Denmark)

The rise of these studios aligns with Europe's growing appetite for innovation, digital transformation, and scalable tech-driven solutions,particularly in sectors like fintech, insurtech, and AI.

Why Venture Studios Are Gaining Ground

1. De-risking Early-Stage Investment

Traditional early-stage investment is risky. Many startups fail due to team mismatches, lack of product-market fit, or execution issues. Venture studios address these challenges by:

• Carefully selecting problems worth solving

• Testing ideas before significant capital is deployed

• Bringing in proven operational teams

• Providing institutional knowledge and repeatable processes

This de-risks early-stage investment, making it more attractive for investors who want exposure to innovation without shouldering all the volatility.

2. Combining Capital and Execution

Venture studios provide more than just money, they bring in execution. Studios typically invest capital alongside deep operational support in product development, marketing, legal, and hiring.

3. Faster Time-to-Market

With in-house resources and processes, studios can launch startups in months rather than years. Time is money in the startup world , and venture studios know how to save both.

4. Stronger Founder Matches

Studios recruit and match founders to ideas after validating those ideas. This approach ensures founders work on something with traction, not just personal passion. It increases the likelihood of founder-market fit.

Case Studies: Success Stories from European Venture Studios

eFounders: Reinventing the Future of Work

Paris-based eFounders has launched over 30 companies in the SaaS space, including:

• Spendesk – a corporate expense management platform

• Front – a shared inbox for teams

• Aircall – cloud-based phone systems

With a portfolio now valued at over $2 billion, eFounders is a prime example of how studios can build repeatable, scalable, and high-value businesses.

Founders Factory: Partnering with Corporates

Founders Factory, headquartered in London, takes a collaborative approach by partnering with corporates like Aviva, L’Oréal, and easyJet to co-create new ventures. This model blends industry expertise with startup agility, resulting in better distribution and exit opportunities.

Challenges for the Venture Studio Model

While the benefits are significant, venture studios also face key challenges:

1. High Operational Costs – Running a studio with multiple teams, developers, and resources is expensive.

2. Talent Bottlenecks – Finding experienced, entrepreneurial founders is not easy, especially for niche industries.

3. Ownership Structures – Studios often retain significant equity in startups they build, which can sometimes discourage later-stage investors or founders.

4. Scalability Issues – Unlike VCs who can deploy capital across dozens of deals, studios require hands-on involvement, making scaling slower.

Yet, many of these challenges are being overcome with better models, diversified funding sources, and growing demand for startup building.

The Future: What’s Next for Venture Studios in Europe?

The next decade looks bright for venture studios in Europe.

1. Niche Studios Will Emerge

Expect to see industry-specific venture studios in areas like:

• HealthTech

• ClimateTech

• InsurTech

• Food and Agriculture

These studios will leverage sector expertise and regulatory knowledge to build highly targeted solutions.

2. More Corporate-Backed Studios

Corporations looking to innovate outside their core business are increasingly turning to studios. This trend will grow as legacy firms in banking, insurance, and logistics face digital disruption.

3. Studio-VC Hybrids

Some studios are evolving into studio-VC hybrids, combining the company-building model with traditional fund investing. This allows them to back external founders while still building in-house ventures.

4. More Government and EU Support

As European governments continue to promote entrepreneurship and innovation, expect more support for venture studios via grants, incubator partnerships, and regulatory incentives.

Final Thoughts

Venture studios represent a powerful shift in how startups are built and funded in Europe. By reducing risk, providing hands-on support, and accelerating time-to-market, they are making early-stage investing more efficient and effective.

As innovation becomes a priority across sectors, and the demand for high-quality startups continues to rise, venture studios are well-positioned to become a central pillar of Europe’s startup ecosystem.

Is AI Transforming Venture Capital?

Methodology: Mapping AI’s Impact Across the VC Value Chain

This analysis draws from recent VC investment trends, AI tooling adoption across fund operations, startup market behavior, and published reports from leading firms in venture and enterprise AI. We focus on identifying how artificial intelligence influences sourcing, due diligence, portfolio support, and decision-making within venture capital firms, and whether it’s enhancing efficiency or replacing core human functions.

In Brief: What’s Changing?

• AI tools are being widely adopted for deal sourcing, screening, and due diligence.

• LPs are showing increased interest in VC funds with a defined AI advantage.

• New firms are emerging with AI-built investment platforms, offering algorithmically driven portfolios.

• Portfolio support is becoming more data-informed, from hiring intelligence to pricing optimization.

• The human element of venture capital: relationships, trust, judgment, remains irreplaceable, but it’s being redefined

Rethinking Venture Capital: Why Evolution Isn’t Optional

While venture capital has long been considered a relationship-driven business, it’s also a sector rich in data, startup metrics, founder backgrounds, market dynamics, and exit multiples. As these datasets grow, VCs are increasingly turning to AI-powered platforms to extract insight, surface opportunities, and reduce operational burden.

Tools like Affinity, PitchBook’s AI modules, and custom GPT-based systems are now used to automate initial sourcing and provide predictive scoring on potential investments. Some firms, like SignalFire and Zetta, have fully integrated AI into their scouting stack.

“What used to take weeks of founder outreach and CRM updates can now be done in hours,” says one GP at a data-native early-stage fund.

AI-Driven Deal Flow: Filtering Noise with Signal

One of AI’s most impactful applications has been in the triage of inbound deal flow. Firms now deploy models that rank incoming decks and emails based on historic performance patterns, investment thesis fit, and keyword matching.

Some early-stage firms are even experimenting with LLM-powered memo generation, allowing analysts to summarize founder calls and create investment memos in minutes rather than days.

However, this is not about removing human insight; it's about freeing teams to focus on founder evaluation, industry diligence, and partnership building.

Due Diligence Gets Smarter and Faster

Diligence used to be slow, expensive, and heavily manual. With AI, venture teams now automate:

• Market sizing analysis

• Competitor landscape mapping

• Sentiment tracking across social/web

• Technical benchmarking using code or API audits

Firms like a16z and FirstMark have invested in internal tools that run structured diligence pipelines, combining data scraping with analyst review. AI makes the process leaner without compromising depth.

Still, human interpretation, especially for early-stage, pre-revenue bets, remains essential.

AI at the Portfolio Level: Coaching and Insight at Scale

Beyond the investment decision, AI is reshaping how firms support their startups. From hiring intelligence (e.g,. identifying likely candidate attrition) to churn risk detection and customer segmentation, venture teams are leveraging platforms to give founders smarter feedback, faster.

Portfolio dashboards with embedded AI modules offer near real-time insights, transforming GPs into strategic advisors supported by robust tooling.
Some emerging fund models even offer “productized venture support”, giving founders access to plug-and-play AI toolkits as a default benefit of the partnership.

What AI Won’t Replace

For all its analytical power, AI has limitations. Venture remains a trust business. Relationship building, founder empathy, and strategic thinking still matter deeply, particularly at the earliest stages, where conviction often precedes data.

The winning firms in this new landscape won’t be the ones that replace people with bots, but those that use AI to scale what humans do best: pattern recognition, intuition, and judgment.

Final Thought: AI Is Reshaping Venture Quietly and Permanently

AI is not replacing venture capital but it is changing the pace, process, and precision with which it’s practiced. Firms embracing this shift are seeing faster cycles, smarter insights, and a competitive edge in both sourcing and portfolio management. Those resisting risk falling behind not because they can’t find deals, but because they’re spending time where AI can already add value. The future of VC isn’t fully automated. It’s augmented and the transformation is already well underway.

From Payment Rails to Embedded Finance: What VCs Are Betting on in Fintech

The fintech revolution has evolved far beyond simple payment apps and digital wallets. As we advance through 2025, venture capitalists are recalibrating their strategies, moving away from traditional fintech plays toward sophisticated infrastructure and embedded financial services that promise to reshape how businesses and consumers interact with money.

The Great Fintech Reset: Where the Smart Money Is Going

The numbers tell a compelling story of transformation. While overall VC investment in fintech remains near six-year lows, strategic investors are doubling down on specific segments that demonstrate exceptional growth potential. The embedded finance market, valued at $104.8 billion in 2024, is projected to explode to $690.39 billion by 2030, a staggering 36.4% compound annual growth rate that has captured the attention of sophisticated investors worldwide.

This isn't just another tech trend. It represents a fundamental shift in how financial services are delivered, consumed, and integrated into daily life. Smart VCs recognize that the future belongs to companies that can seamlessly weave financial functionality into existing platforms rather than building standalone financial products

Payment Rails: The Infrastructure Play That's Paying Off

The backbone of modern finance is undergoing a radical transformation, and investors are taking notice. FedNow, the Federal Reserve's instant payment system, is processing $190 million in payments daily, while Real-Time Payments (RTP) networks reported a remarkable 94% increase in transaction volume throughout 2024. This explosive growth has tripled participation in instant payment rails over the past year, with over 1,200 financial institutions now connected to these systems.

For VCs, this represents more than just impressive statistics, it signals a massive opportunity in payment infrastructure. Companies building the pipes that enable instant, seamless transactions are attracting significant investment because they're positioned to capture value from every transaction flowing through their systems. The shift from traditional payment processing to instant settlement creates entirely new revenue streams and business models that savvy investors are eager to fund.

Embedded Finance: The Trillion-Dollar Opportunity

The embedded finance sector is where VCs are placing their biggest bets, and the data supports their enthusiasm. Multiple market research firms project the sector will reach between $570.9 billion and $1.73 trillion by 2033, depending on adoption rates and regulatory environments. These aren't just optimistic projections, they're backed by real market momentum.

Consider the rapid expansion beyond traditional sectors. Healthcare, construction, and hospitality, industries previously slow to adopt financial technology, are now integrating tailored financial services directly into their platforms. This expansion is driving what investors call the "invisible finance" trend, where financial services become so seamlessly integrated that users barely notice they're engaging with sophisticated financial products.

The retail sector alone demonstrates the power of this shift. Fintech companies have grown from handling 22% of personal loan originations in 2019 to approximately 39% in 2024. This isn't just market share displacement, it's evidence of a fundamental change in how consumers prefer to access financial services: embedded within the platforms and services they already use.

The AI Wild Card: Intelligent Financial Services

Artificial intelligence has emerged as a bright spot in an otherwise cautious investment environment. VCs are particularly excited about AI applications that enhance embedded finance platforms, enabling real-time credit decisions, personalized financial products, and predictive analytics that can anticipate user needs before they're explicitly expressed.

The convergence of AI and embedded finance is creating opportunities for companies to offer hyper-personalized financial services at scale. For investors, this represents the holy grail of fintech: technology that can increase conversion rates, reduce risk, and create sticky customer relationships simultaneously.

Geographic Hotspots: Where the Action Is

The global nature of fintech investment is creating interesting regional dynamics. China's embedded finance market is expected to grow at a remarkable 32.8% CAGR through 2030, driven by tech giants like Alibaba and Tencent integrating financial services into their ecosystems. Meanwhile, India is witnessing significant growth with a 19.5% CAGR, fueled by a massive underbanked population and supportive regulatory environment.

These geographic variations are creating opportunities for VCs to invest in region-specific solutions that can later be adapted for global markets. The most successful fintech companies are those that can navigate diverse regulatory environments while maintaining their core value propositions.

The Regulatory Reality Check

Smart investors are also paying close attention to the regulatory landscape. Increased regulation, predicted as one of the top fintech trends for 2025, isn't necessarily a headwind, it's an opportunity for well-positioned companies to create competitive moats. Firms that can navigate complex compliance requirements while maintaining user experience advantages are attracting premium valuations.

The regulatory environment is actually accelerating the embedded finance trend, as companies seek to partner with established financial institutions rather than navigate licensing requirements independently. This creates opportunities for B2B fintech companies that can serve as bridges between traditional financial institutions and technology platforms.

The Investment Thesis: Infrastructure Over Apps

The most successful fintech VCs are shifting their focus from consumer-facing applications to the infrastructure that powers them. The companies receiving the largest funding rounds are those building the rails, APIs, and platforms that enable other businesses to offer financial services seamlessly.

This infrastructure-first approach reflects a mature understanding of the fintech ecosystem. While consumer apps can achieve viral growth, infrastructure companies build sustainable, defensible businesses with predictable revenue streams and strong network effects.

Looking Forward: The Next Wave

As we move deeper into 2025, the fintech landscape is being reshaped by three key forces: the maturation of instant payment rails, the explosive growth of embedded finance, and the intelligent application of AI to financial services. VCs who understand these dynamics and invest accordingly are positioning themselves to capture outsized returns in what promises to be the most transformative period in financial services history.

The message is clear: the future of fintech isn't about building better banking apps, it's about making finance invisible, instant, and intelligent. The companies and investors who embrace this reality will define the next decade of financial innovation.

Final Thoughts

The fintech evolution we're witnessing today represents more than just technological advancement, it's a fundamental reimagining of how financial services integrate into human and business experiences. For venture capitalists, this moment presents both unprecedented opportunity and significant risk. 

The data overwhelmingly supports one conclusion: the age of standalone fintech products is ending, and the era of invisible, embedded financial services has begun. The question isn't whether this transformation will happen, it's whether investors will have the vision to back the companies that make it reality.

A summary of Mandalore Partners’ portfolio companies’ impact - 2024

Executive Summary

Mandalore Partners is a leading impact investor, committed to generating positive change alongside strong financial returns. We strategically invest in innovative companies that leverage impact as a driver of performance and differentiation. This report showcases the tangible impact achieved by our portfolio companies in 2024, highlighting their contributions to a healthier, more inclusive, and sustainable world.

Our portfolio companies have collectively improved the well-being of over 81,000 individuals through access to healthcare and optimized work environments. They have facilitated economic empowerment for women in emerging countries, enabling financial stability and skills development. Furthermore, they have enhanced emergency response capabilities, protecting a territorial area of 126,021 km² and improving public safety. Finally, our portfolio companies have empowered organizations to effectively measure and optimize their impact, driving accountability and transparency in the impact sector. These achievements demonstrate the power of impact investing to create a better future, and underscore Mandalore Partners' leadership in driving positive change.

Our Approach to Impact

At Mandalore Partners, we invest in high-growth potential companies that leverage impact as a driver of performance and differentiation. Unlike traditional investment funds, we work closely with our portfolio companies to structure and maximize their impact while ensuring profitable and sustainable growth. Our approach is built on rigorous criteria for evaluating and supporting businesses, focusing on innovative business models that can positively transform their markets.

Our Investment Thesis

We invest in companies that use technology and innovation to address major challenges and have strong scalability potential. Our portfolio consists of companies that meet three fundamental criteria:

Measurable and Tangible Impact: We ensure that companies deliver verifiable value to their stakeholders, with clear performance indicators.

Solid and Scalable Business Model: Impact should not be a constraint but rather an accelerator of growth.

Sustainable Competitive Advantage: We seek companies that can innovate and distinguish themselves sustainably in their market.

We don’t just invest: we actively collaborate with leadership teams to refine their strategy, structure their impact, and strengthen their market positioning.

Our Differentiation

Unlike conventional investment funds, Mandalore Partners does not position itself as an impact fund, but as a pragmatic investor who integrates impact as a lever for value creation. Instead, it actively supports its portfolio companies to align growth with impact without compromising on performance and adopts a targeted sector approach, focusing on technology companies with real potential to transform their markets.

Our Companies and Their Impact

We have invested in several companies that integrate impact as a core element of their business model:

Capsix
Capsix is developing a revolutionary robotic solution to democratize access to body care and reduce chronic pain. This innovation enables broader and more accessible treatment, particularly in workplaces where preventing musculoskeletal disorders (MSDs) is essential.

Isahit
Isahit operates a digital micro-work platform that provides economic opportunities to women in developing countries. It combines social impact and economic performance by meeting corporate needs while promoting the financial empowerment of its workers.

AUM Biosync
AUM Biosync develops AI-driven solutions to improve the quality of life for shift workers. Its goal is to optimize biological rhythms and reduce negative health impacts.

Impact Track
Impact Track offers a platform that helps impact-driven organizations measure and optimize their results. Its data-driven approach structures impact measurement and attracts funding.

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Capsix

Source used for this section: Résultats Impacts iYU Capsix

Capsix has developed a cutting-edge robotic solution designed to democratize access to physical care and reduce chronic pain, especially in environments where musculoskeletal disorders (MSDs) are prevalent. By focusing on improving employee wellness and preventing injuries, Capsix contributes to healthier and more productive workplaces. The innovative approach is particularly beneficial in industries where physical labor is required, offering workers accessible and effective solutions for chronic pain management and overall well-being.

Figure 1: iYU massage robot by Capsix

In 2023, Capsix achieved notable improvements across several key impact indicators. These results were based on a study spanning two months, conducted on a stressed population of 27 people, during which participants received 20 minutes of IYU massages twice a week. The solution led to a significant reduction in stress levels, with a decrease of 37%, and anxiety was reduced by 64%. Depression levels saw a 33% reduction, and latency (the time it takes for users to feel the benefits of the solution) decreased by 44%. Additionally, users experienced a 25% reduction in various disorders and an 11% improvement in overall physical condition. Serenity and calmness were also notably improved, with increases of 11% and 12%, respectively.

In another study conducted over five weeks, Capsix examined the impact of its solution on individuals suffering from chronic back pain. This study involved a group of 30 participants who received IYU massages for 30 minutes twice per week. Their results were compared with those of two other groups: one that combined 15 minutes of exercise with 15 minutes of IYU, and another that combined 15 minutes of exercise with 15 minutes of relaxation. The findings demonstrated that Capsix's robotic solution significantly alleviated physiological stress, improved perceived health, and enhanced cognitive performance. Sleep disorders were reduced, and participants reported notable improvements in flexibility, muscular endurance, and postural stability.

These benefits not only contribute to the well-being of individuals but also support businesses in creating more resilient and productive workforces. Through its innovative approach, Capsix continues to drive positive change in workplace health, offering scalable solutions that enhance both physical and mental wellness, ultimately contributing to the long-term success of its users and clients alike.

Figure 2. Results of a study spanning two months in 2023, conducted on a stressed population of 27 people, during which participants received 20 minutes of IYU massages twice a week.

Figure 3: Changes in Stress, Anxiety, and Depression Levels after the Capsix study spanning two months in 2023, conducted on a stressed population of 27 people, during which participants received 20 minutes of IYU massages twice a week.

Figure 4: Changes in Sleep Quality, Latency, and Disorders after the Capsix study spanning two months in 2023, conducted on a stressed population of 27 people, during which participants received 20 minutes of IYU massages twice a week.

In 2024, Capsix conducted a study evaluating the efficacy of its iYU robotic massage solution in alleviating low back tension and improving overall well-being. Over five weeks, 30 participants were divided into three groups: one receiving 30-minute iYU massage sessions twice per week, another combining 15 minutes of exercise with 15 minutes of iYU, and a third combining 15 minutes of exercise with 15 minutes of relaxation. The group that received iYU massages demonstrated remarkable improvements, including a 63% reduction in physiological stress (measured via cortisol levels) and a 31% decrease in perceived stress. Pain levels were reduced by 48%, while functional capacity showed significant enhancements, with a 39% and 60% increase in the Biering-Sorensen and Shirado-Ito tests, respectively. Sleep disruption decreased by 24%, and insomnia levels dropped by 28%. Participants also reported a 14% increase in perceived quality of life, a 29% improvement in well-being, and a 20% boost in recovery. These findings underscore iYU’s effectiveness in addressing both physical and mental health challenges, further solidifying Capsix’s impact in promoting holistic wellness.

Figure 5: Changes in Functional Capacity Markers after a Capsix study spanning five weeks in 2024, conducted on 30 participants receiving iYU robotic massages and/or exercise

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Isahit

Source used for this section: Annual Impact Study June 2022 - May 2023

Isahit is a key player in digital and economic inclusion, providing women in emerging countries with income opportunities while equipping them with valuable digital and professional skills. The platform operates on a dual model: offering supplemental income while fostering sustainable skills development, ensuring long-term employability and financial stability. Unlike other micro-work platforms often criticized for precarious labor conditions, Isahit prioritizes structured, meaningful engagement. By offering a framework that extends beyond immediate compensation, the platform supports professional growth, personal empowerment, and community-building.

Figure 6: Isahit Platform

The impact of Isahit is primarily reflected in the economic and professional empowerment of its beneficiaries. On average, HITers who left the platform positively earned €1,306, demonstrating the platform’s role in providing tangible financial opportunities. More than half of them, 56%, reported being able to save money, indicating improved financial stability. This economic impact is reinforced by Isahit’s structured approach to work, which differs from other micro-task platforms by offering a more sustainable and empowering experience. Rather than being limited to short-term gigs, HITers gain exposure to structured work that enhances their professional trajectory.

A key differentiating factor of Isahit is its educational and community-driven approach. The platform provides 56 free digital courses, enabling users to develop skills that align with market demands. This commitment to continuous learning is reflected in user satisfaction, with 91% of HITers reporting that the digital skills acquired on the platform met their expectations. The experience gained on Isahit is widely recognized as an asset in job searches, with 80% of HITers considering it a valuable professional credential. Furthermore, the platform serves as a catalyst for personal growth, with 70% of users stating that Isahit has helped them achieve or will help them achieve their personal projects.

Figure 7: Effects of Isahit on personal growth

The social impact of Isahit extends beyond skills development and financial gains. The sense of belonging to an international community plays a crucial role in the empowerment of HITers, with 88% of users recognizing the added value of being part of such a network. This community aspect fosters confidence, motivation, and experience-sharing, creating an environment conducive to long-term professional integration. Data also highlight significant improvements in soft skills and workplace readiness. Before joining the platform, 69% of HITers felt confident in themselves, a figure that rose to 96% after leaving. Similarly, the ability to make independent decisions improved from 69% to 95%, while comfort with entering the job market increased from 50% to 92%. These metrics underscore the role of Isahit in strengthening self-esteem, autonomy, and employability.

Figure 8: Effects of Isahit on growth in confidence and workplace readiness

Isahit’s model not only provides income but also facilitates the successful transition of HITers into the workforce. One of the most concrete indicators of impact is the realization of life projects. During the study period, 64 HITers, representing 5.2% of those who left the platform, successfully completed their professional projects after working more than 50 hours on Isahit. This data highlights the platform’s ability to serve as a stepping stone for users aiming to launch careers, businesses, or educational endeavors.

While Isahit has demonstrated a strong and measurable impact, challenges remain in sustaining its long-term effects. Ensuring that HITers continue to benefit from their experience beyond their time on the platform is a key priority. Expanding training offerings, particularly through certified learning paths, could further enhance employability and career prospects. Additionally, diversifying task opportunities to better align with individual aspirations may strengthen the platform’s role in career development.

Ultimately, Isahit goes beyond being a simple micro-work platform by integrating income generation, skills training, and personal development into a cohesive model. The high recommendation rate of 84% from HITers reflects strong overall satisfaction and confidence in the platform’s ability to drive meaningful change. By fostering digital and economic inclusion, Isahit empowers women to build stable and ambitious futures, contributing to a more inclusive global workforce.

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AUM Biosync

Source used for this section: https://page.impacttrack.org/aum-biosync 

AUM Biosync is dedicated to enhancing the quality of life for workers in high-risk and shift-based professions through AI-driven solutions that optimize biological rhythms and improve operational efficiency. By equipping emergency response teams, firefighters, and public service personnel with innovative tools, AUM Biosync contributes to improved health, safety, and performance across its client organizations. The company’s growing impact is evident in key performance indicators, reflecting its expanding role in optimizing emergency response operations and strengthening public safety infrastructure.

Figure 9: AUM Biosync platform

Between 2022 and 2024, AUM Biosync saw a substantial increase in engagement and operational reach. The total number of individuals engaged across its client base rose from 54,600 in 2022 to 81,053 in 2024, with the number of voluntary firefighters increasing from 42,700 to 56,724 over the same period. This expansion underscores AUM Biosync’s role in fostering workforce participation and strengthening emergency response capacity.

Figure 10: Total Number of personnel Engaged Across Clients (2022 vs 2024)

Operational impact has also grown significantly. The annual number of emergency interventions performed by AUM Biosync’s client organizations more than doubled, increasing from 895,000 in 2022 to 1.82 million in 2024. This surge highlights the efficiency gains facilitated by the company’s solutions, which enhance risk analysis, response coordination, and overall service delivery. 

Figure 11: Annual Interventions Conducted by Clients (2022 vs 2024)

The company’s impact extends beyond operational improvements to broader social contributions. In 2024, AUM Biosync donated €69,000 to charitable organizations supporting children, including initiatives for firefighter orphans and programs such as Pompy l’ourson and Rêves de gosses. Additionally, the total territorial area protected by client organizations increased from 94,000 km² in 2022 to 126,021 km² in 2024, reflecting a significant expansion in service coverage.

Figure 12: Territorial Area Protected by Clients (2022 vs 2024)

AUM Biosync's products and services receive strong endorsements from users, particularly in their ability to enhance emergency response efficiency, operational alignment, and crisis management. 69.7% of users strongly agree that the company's solutions contribute to the equitable and sustainable distribution of emergency services, ensuring fair access to critical interventions. Furthermore, 70.1% believe that AUM Biosync’s offerings effectively meet professional and operational expectations, reinforcing their relevance in real-world applications.

In terms of risk management, 72.9% of respondents strongly agree that AUM Biosync’s solutions enhance risk analysis and response coverage efficiency, making them a vital tool for decision-making in high-pressure environments. Additionally, 65.8% of users acknowledge that these tools improve the accessibility and sustainability of civic engagement, reflecting their role in supporting volunteer and professional emergency responders.

A particularly notable impact is seen in crisis understanding and resilience, where 76.3% of respondents affirm that AUM Biosync’s solutions help them better comprehend the complexity of major crises and resilience factors. This highlights the company's contribution to strengthening preparedness and response strategies in high-risk situations.

Financial Commitment to Protection and Safety

AUM Biosync’s client organizations collectively allocate significant resources toward the protection of people and assets. In 2024, the total budget dedicated to safeguarding personnel and infrastructure reached €2,477,300,711. This substantial investment underscores the critical role that AUM Biosync plays in optimizing resource allocation and ensuring cost-effective emergency management strategies. By integrating AI-driven predictive analytics and data-driven decision-making tools, AUM Biosync helps its partners maximize the efficiency of their financial commitments, ensuring that every euro spent contributes to enhanced safety and operational effectiveness.

The allocation of these funds supports a wide range of activities, including training programs for emergency responders, the acquisition of cutting-edge safety equipment, and the development of digital platforms for improved situational awareness. These financial investments are crucial in enabling organizations to anticipate risks, coordinate interventions more effectively, and minimize response time in critical situations.

Enhanced Emergency Response Capabilities

The operational effectiveness of AUM Biosync’s solutions is further demonstrated by the dramatic rise in emergency response activities. The total number of annual interventions conducted by client organizations surged from 895,000 in 2022 to 1,820,189 in 2024. This near doubling of interventions underscores the enhanced efficiency and coordination facilitated by AUM Biosync’s AI-powered technology, which streamlines intervention processes and improves overall response time.

By leveraging real-time data analytics and intelligent resource allocation, AUM Biosync enables emergency responders to prioritize incidents based on severity, optimize dispatch routes, and minimize delays. These improvements have a direct impact on public safety outcomes, reducing casualties and mitigating the impact of critical incidents. Additionally, the platform’s ability to analyze historical data allows for proactive risk assessment, helping organizations implement preventive measures and allocate resources more effectively before emergencies arise.

Figure 13: Total number of annual interventions conducted by client organizations (2022 vs 2024)

Strengthening Workforce Engagement

AUM Biosync’s impact is also reflected in the increasing number of personnel engaged across its client organizations. From 2022 to 2024, the number of individuals participating in emergency and protective services rose from 54,600 to 81,053. This expansion signifies the company’s effectiveness in fostering workforce engagement and reinforcing public service infrastructure. The growing number of engaged personnel highlights an increasing reliance on AUM Biosync’s technology to support first responders and ensure their well-being during high-pressure operations.

In particular, the number of voluntary firefighters has grown significantly, increasing from 42,700 in 2022 to 56,724 in 2024. This trend suggests that

AUM Biosync’s solutions not only optimize emergency response efforts but also enhance the appeal of volunteer service by providing better working conditions, more predictable schedules, and greater support for personnel. The ability to manage workloads more effectively and mitigate fatigue has been a key factor in retaining skilled professionals and encouraging new recruits to join the workforce.

Figure 14: Total Number of Personnel Engaged Across Clients (2022 vs 2024)

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Impact Track

Source used for this section: https://page.impacttrack.org/impact-track 

In a landscape where impact measurement is increasingly essential for businesses, investors, and associations, Impact Track serves as a strategic enabler by providing a robust methodological framework and specialized tools for assessing and demonstrating impact. The platform goes beyond traditional data tracking, transforming how organizations approach impact measurement by making best practices more accessible. By equipping organizations of all sizes with advanced impact measurement capabilities, Impact Track fosters data-driven decision-making and enhances strategic planning to maximize long-term outcomes.

Figure 15: Impact Track platform

A core strength of Impact Track is its ability to cultivate sustained engagement in impact measurement. Rather than serving as a one-time reporting tool, the platform integrates impact tracking into organizational workflows, enabling continuous improvement. This is reflected in user behavior, with 60.5% of organizations continuing to measure their impact beyond their initial subscription. Such long-term adoption underscores the platform’s effectiveness in embedding impact measurement as a sustainable and strategic practice.

Beyond operational benefits, Impact Track strengthens organizational credibility and visibility. In an environment where transparency and verifiable impact data are critical to securing stakeholder trust, the platform enables organizations to substantiate their claims with concrete evidence. As a result, 57.9% of users report that Impact Track has enhanced their project credibility, improving their ability to engage investors, funders, and beneficiaries. Furthermore, 59.5% of users feel confident in independently managing their impact measurement, demonstrating the platform’s role in fostering internal capacity and long-term autonomy

The adoption and utilization of Impact Track have grown significantly, as demonstrated by key performance indicators. The number of active projects tracked on the platform increased from 288 in 2023 to 359 in 2024, reflecting expanding engagement. Additionally, user satisfaction with training and support improved from 93.8% in 2023 to 97.2% in 2024, reinforcing the platform’s commitment to continuous service enhancement.

Despite strong adoption and satisfaction levels, opportunities for improvement remain. The user renewal rate stands at 43%, indicating that while nearly half of users continue beyond their initial subscription, there is room to further enhance retention. Offering more flexible plans, advanced analytical tools, and tailored support services could help convert a higher percentage of initial users into long-term subscribers. Additionally, Impact Track’s model could be adapted for new sectors, such as public administration and local governments, broadening its reach and relevance.

Impact Track is more than a technological solution; it is a driver of transformation in impact measurement practices. Its influence extends beyond the number of projects tracked, promoting a culture of rigorous, transparent, and effective impact evaluation. By equipping organizations with the tools needed to measure and optimize their impact, Impact Track is playing a critical role in strengthening accountability and fostering strategic decision-making across the impact sector.

Figure 16: User Feedback on Impact Measurement and Platform Usability

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Conclusion

Mandalore Partners is dedicated to building a future where positive impact and financial success go hand-in-hand. We believe that investing in companies that are committed to solving critical challenges is not only the right thing to do, but also a smart investment strategy. The achievements of our portfolio companies, as detailed in this report, demonstrate the power of impact investing to create a better world.

By leveraging innovation, technology, and a rigorous impact measurement framework, we are confident that our portfolio companies will continue to generate significant positive change while delivering strong financial performance. Mandalore Partners remains committed to our mission of investing in a better future, and we invite you to join us on this journey.

The Most VC-Funded Sectors in Europe

The Most VC-Funded Sectors in Europe

Europe’s startup ecosystem has grown rapidly over the past decade, attracting billions in venture capital (VC) from both local and global investors. While overall funding levels fluctuate with macroeconomic conditions, certain sectors consistently draw strong VC attention. From climate tech and deep tech to fintech, health innovations, and enterprise software, the continent’s innovation landscape is increasingly diverse and resilient.

Climate Tech Leads the Pack

Climate tech and energy transition startups are now Europe’s single largest VC-funded sector, accounting for approximately 27–30% of total venture capital investment in 2023 (Dealroom/Sifted). This surge reflects the EU’s ambitious carbon neutrality targets, supportive policy frameworks, and the growing appetite among investors for climate-positive solutions.

Startups tackling renewable energy, sustainable mobility, carbon capture, and circular economy solutions are driving the trend. Countries like the Netherlands, Germany, and the Nordics are at the forefront, combining strong cleantech ecosystems with dedicated climate funds.

AI & Deep Tech Keep Rising

AI and deep tech (which includes frontier technologies like advanced hardware, quantum computing, and automation) accounted for about 17% of Europe’s VC funding in 2023. The rise of generative AI and automation tools is accelerating investor interest, with large rounds for companies like Mistral AI, DeepL, and Aleph Alpha showing the strength of the ecosystem.

Key hubs for AI and deep tech include Berlin, Paris, and London, all benefiting from talent density and supportive research institutions.

Fintech Remains a Pillar

Fintech remains a major draw, attracting roughly 15–19% of total VC investment, down slightly from its peak but still firmly in the top three sectors. From digital banks to blockchain platforms and payments solutions, European fintech leaders like Revolut (UK), N26 (Germany), and Lydia (France) continue to scale, supported by consumers’ shift away from traditional banking.

London remains Europe’s fintech capital, thanks to its mature regulatory environment and deep investor pools.

Healthtech & Enterprise Software Stay Solid

While harder to split precisely, healthtech and enterprise software together continue to be pillars of European VC activity. Over the last 20 years, they have consistently accounted for a combined ~40% of total VC funding (Dealroom). Healthtech startups in telemedicine, AI diagnostics, and mental health are still seeing healthy long-term growth, while B2B SaaS and cloud solutions remain attractive bets for their scalability and recurring revenues.

Companies like Doctolib (France), Kry (Sweden), and Celonis (Germany) show how Europe’s healthtech and enterprise software scenes remain globally competitive.

Emerging Sectors to Watch

Beyond these leading sectors, several emerging areas are gaining momentum:

• AgriTech: With food security and regenerative farming in focus, AgriTech is steadily attracting more funding.

• Cybersecurity: Increasing digital threats are driving larger rounds for European security startups.

• Edtech: While post-pandemic growth slowed, niches like corporate training and AI-driven learning are evolving.

• Space Tech: Once US-dominated, Europe’s space tech sector is quietly expanding, supported by national programs and private capital.

How Does Europe Compare Globally?

According to Dealroom’s 2023 and early 2024 data, Europe’s top-funded sectors now mirror global trends in the US and East Asia. In the US, the top sectors by VC investment are:

1. Health & Biotech

2. Enterprise Software / AI

3. Fintech

East Asia follows a similar pattern, with deep tech, fintech, and industrial tech attracting the biggest rounds. Notably, Europe’s climate tech stands out: its share of total VC funding is higher than in North America or Asia, thanks to EU policy incentives and investor demand for sustainable growth.

Final Thoughts

The European VC landscape is dynamic, but certain sectors continue to stand out for their scale, impact, and resilience. Climate tech, deep tech, fintech, healthtech, and enterprise software together account for the lion’s share of VC investment, while emerging verticals like AgriTech and space tech hint at the next wave of innovation.

For founders, understanding which sectors attract capital and why can shape how you position your startup. For investors, the current trends reflect where both opportunity and responsibility intersect in the next era of European innovation.

What Are the Characteristics of a Unicorn Founder?

Unicorn founders possess distinct traits and strategies that set them apart in the entrepreneurial landscape. Contrary to the belief that technological innovation is the primary driver of success, evidence shows that effective strategy, leadership, and timing are crucial for building billion-dollar companies. Here are the key characteristics of successful unicorn founders:

1. Strategic Vision

Unicorn founders excel at identifying and capitalizing on emerging trends. They have a keen ability to spot opportunities in the market and navigate their ventures with a strategic mindset. This skill allows them to lead their companies effectively, even in competitive environments.

Example:

• Steve Jobs improved existing technology rather than creating it from scratch, demonstrating that strategic enhancement can lead to substantial success.

2. Focus on Execution Over Innovation

While innovation is important, it is not the sole factor for success. Many billion-dollar entrepreneurs succeed by imitating and refining existing ideas rather than relying on breakthrough technology. They understand that execution and strategy often outweigh raw innovation.

Notable Founders:

• Bill Gates purchased software and enhanced it.

• Jeff Bezos imitated online booksellers and revolutionized e-commerce infrastructure.

3. Independence from Venture Capital

A significant percentage of billion-dollar entrepreneurs—94%—build their businesses without heavy reliance on venture capital (VC). They prioritize maintaining control over their companies, often delaying or avoiding VC funding until they are in a position of strength.

Key Cases:

• Mark Zuckerberg delayed VC involvement to retain control of Facebook.

• Jan Koum bootstrapped WhatsApp before its acquisition for $19 billion.

4. Leadership Skills

Unicorn founders possess strong leadership capabilities that enable them to guide their companies through various stages of growth. They are adept at rallying teams, making pivotal decisions, and executing their vision effectively.

Leadership Insights:

• Founders who remain in control often retain 2x to 7x more wealth compared to those who hand over leadership to professional CEOs after receiving VC funding.

5. Ability to Adapt and Scale

Successful unicorn founders can adapt their strategies to changing market conditions and scale their businesses efficiently. They leverage their understanding of the industry to navigate challenges and capitalize on new opportunities.

Examples of Adaptation:

• Brian Chesky (Airbnb) took the concept of online rentals and significantly improved it, helping landlords maximize their rental potential.

6. Emphasis on Wealth Creation and Impact

Unicorn founders focus not just on building successful companies but also on creating lasting impact and wealth for themselves and their stakeholders. They understand that true success encompasses both financial rewards and positive societal contributions.

Conclusion

The characteristics of unicorn founders challenge the conventional narrative that technology alone drives success. Instead, it is the combination of strategic vision, execution, independence from VC, leadership skills, adaptability, and a focus on impact that defines these exceptional entrepreneurs. As we rethink entrepreneurship education, it is essential to emphasize these traits to cultivate the next generation of successful founders.

Exploring the Link Between Venture Building and VC-as-a-Service

In the ever-evolving startup ecosystem, two models have emerged as key players in fostering innovation and entrepreneurship: venture building and VC-as-a-Service (Venture Capital-as-a-Service). While their approaches differ significantly, they are interconnected in ways that create synergies and drive value for startups, investors, and corporations alike. This article explores the definitions, differences, and the link between these two models.

What is Venture Building?

Venture building refers to the process of systematically creating startups from scratch within a structured environment, often led by venture studios or startup studios. These studios act as co-founders, providing resources, expertise, and funding to build and launch startups.

Key characteristics of venture building include:

• Idea Generation: Studios identify market gaps and develop startup ideas.

• Operational Involvement: They take an active role in building the team, developing products, and managing operations.

• Shared Resources: Startups benefit from shared infrastructure, such as legal, marketing, and technical support.

• Equity Ownership: Studios typically hold equity in the startups they create.

Venture building minimizes the risk of failure by providing startups with a strong foundation and access to expertise, making it an attractive model for entrepreneurs and investors alike.

What is VC-as-a-Service?

VC-as-a-Service is a model where a venture capital firm offers its expertise and services to manage investments on behalf of external entities, such as corporations, family offices, and institutional investors. Instead of raising a traditional VC fund, these firms act as strategic partners, deploying capital into startups that align with the client’s goals.

Key characteristics of VC-as-a-Service include:

• Customized Investment Strategies: Investments are tailored to the client’s objectives, whether financial returns, strategic innovation, or market access.

• Outsourced Expertise: Clients leverage the VC firm’s network, deal flow, and knowledge without building an internal team.

• Focus on Innovation: Corporations often use VC-as-a-Service to invest in disruptive startups that align with their long-term vision.

This model is particularly appealing to organizations looking to innovate through external investments while mitigating the risks and complexities of direct startup engagement.

How Venture Building and VC-as-a-Service are Linked

Though venture building and VC-as-a-Service serve different purposes, they intersect in several ways, creating opportunities for collaboration and mutual benefit:

1. Complementary Roles in the Startup Ecosystem

• Venture builders focus on creating startups from the ground up, often in the pre-seed or seed stage.

• VC-as-a-Service providers focus on funding and scaling startups, often at later stages.

This complementary relationship allows venture studios to collaborate with VC-as-a-Service firms to secure funding for their portfolio startups, while VC-as-a-Service firms gain access to high-quality, de-risked investment opportunities.

2. Partnerships for Strategic Investment

Venture studios often partner with VC-as-a-Service providers to attract external capital for their startups. For instance:

• A corporation using a VC-as-a-Service model might invest in startups created by a venture studio as part of its innovation strategy.

• Venture studios benefit from these partnerships by securing funding and strategic support for their startups.

3. Integrated Models

Some organizations combine both models under one roof. For example:

• A venture studio may offer VC-as-a-Service to external partners, allowing them to co-invest in the startups the studio creates.

• This hybrid approach aligns the interests of venture builders and investors, creating a streamlined pipeline from startup creation to scaling.

4. Focus on Innovation and Risk Mitigation

Both models aim to foster innovation while reducing risks:

• Venture building reduces the risk of startup failure by providing operational support and expertise.

• VC-as-a-Service diversifies investment risks by spreading capital across multiple startups.

Together, they create a robust ecosystem where startups are not only built but also funded and scaled efficiently.

Key Differences Between Venture Building and VC-as-a-Service :

Conclusion

Venture building and VC-as-a-Service are two distinct yet interconnected models that play vital roles in the startup ecosystem. Venture studios focus on the creation of startups, while VC-as-a-Service enables the funding and scaling of these ventures. Together, they form a powerful combination that drives innovation, reduces risks, and creates value for all stakeholders involved.

As the startup ecosystem continues to evolve, the collaboration between venture builders and VC-as-a-Service providers is likely to grow, creating new opportunities for entrepreneurs, investors, and corporations to thrive.

Leçons de la mise en sauvegarde d’Ÿnsect : ce que Mandalore IndustryTech fait différemment pour assurer la pérennité de ses investissements

Source : © Ynsect
https://www.reussir.fr/ladepeche/ynsect-leve-des-fonds-et-construit-une-ferme-verticale-pour-sa-production-dinsectes

Le parcours de la start-up française Ÿnsect, autrefois considérée comme un fleuron de l’agri-tech française, a pris un tournant difficile en 2024 lorsqu’elle a été placée en procédure de sauvegarde. Cette démarche, visant à réorganiser ses activités tout en conservant ses emplois et ses dettes, a mis en lumière des défis auxquels sont confrontées de nombreuses start-ups dans les secteurs industriels et technologiques. Ces défis permettent d’identifier des écueils que Mandalore IndustryTech s’efforce d’éviter pour ses propres investissements, en ajustant sa thèse pour une approche plus résiliente et adaptée.

Une vision réaliste et progressive du financement à long terme

L’ambition de Ÿnsect de construire la plus grande ferme verticale d’insectes au monde a nécessité des investissements massifs. Cependant, cette expansion rapide n’a pas permis à l’entreprise d’anticiper suffisamment les besoins de financement à plus long terme, en particulier dans un contexte de marché en ralentissement.

Chez Mandalore IndustryTech, nous intégrons cette leçon en optant pour un accompagnement rigoureux dans la gestion des financements. Nous privilégions des stratégies qui assurent non seulement la levée de fonds initiale mais aussi une planification à long terme, adaptée aux cycles financiers. En conséquence, les entreprises que nous soutenons doivent démontrer une voie vers des revenus autonomes, avec une croissance modulable en fonction de la disponibilité des ressources.

Au lieu de miser sur une expansion rapide comme Ÿnsect, Mandalore IndustryTech propose un accompagnement rigoureux dans la gestion des financements en planifiant sur le long terme.

Maîtrise des opérations industrielles : une priorité stratégique

Ÿnsect s’est lancée dans un projet ambitieux et technologiquement complexe. Mais dans un secteur industriel à forte intensité capitalistique, toute faille dans la chaîne de production ou la logistique peut rapidement devenir coûteuse.

Pour éviter ce type de problème, Mandalore IndustryTech se concentre sur des entreprises qui affichent une solide expertise industrielle et une capacité à gérer leurs opérations de manière stable et efficace. En effet, le fonds cible les startups étrangères de série B+ ou les entreprises de taille moyenne ayant des activités en Europe et cherchant à se développer en France.

Nous encourageons des partenariats industriels dès les premières phases de conception, garantissant que les projets soient soutenus par des acteurs expérimentés. Cela inclut aussi des tests de faisabilité et des études industrielles rigoureuses avant d’engager des investissements significatifs. Le fonds vise à sélectionner des acteurs étrangers capables de s’implanter en Europe à partir de la France. L’objectif est d’investir dans des entreprises souhaitant s’implanter en France pour développer leur marché européen.

Rentabilité et génération de flux de trésorerie : une condition essentielle

Dans le cas de Ÿnsect, une forte croissance n’a pas été suivie par une rentabilité suffisante, rendant la start-up dépendante des financements externes. Cette dépendance peut devenir problématique lorsque les investisseurs adoptent une approche plus conservatrice, comme cela a été le cas ces dernières années.

Mandalore IndustryTech se distingue par son exigence d’un modèle économique clair et viable dès les débuts d’un projet. Nous soutenons des entreprises qui montrent une capacité à générer des flux de trésorerie et qui ne dépendent pas uniquement de financements externes pour survivre. La rentabilité, ou du moins une voie crédible vers celle-ci, est un critère fondamental pour nos investissements, car elle permet aux entreprises de maintenir une certaine autonomie.

À la différence d'Ÿnsect, qui était dépendante des financements externes, Mandalore IndustryTech exige un modèle économique viable dès le départ. Le fonds recherche des entreprises capables de générer des flux de trésorerie et vise un rendement financier de 3x.

Adaptabilité et résilience face aux cycles économiques

La mise en sauvegarde d’Ÿnsect s’inscrit dans un contexte de ralentissement économique où les investisseurs deviennent plus prudents. Cela souligne la nécessité pour une start-up de savoir s’adapter aux fluctuations des cycles économiques.

Pour Mandalore IndustryTech, l’adaptabilité est une qualité essentielle. Nous investissons dans des entreprises capables de moduler leur croissance en fonction des conditions du marché. Cela signifie que nos investissements sont pensés pour offrir des leviers d’ajustement, permettant aux entreprises de naviguer efficacement dans des périodes de ralentissement sans compromettre leur pérennité.

Pour autant qu’il faut savoir moduler sa croissance dans les périodes compliquées, les conditions de marché sont actuellement prometteuses. En effet, le marché américain de l’Industry 4.0 devrait atteindre 9 104 millions de dollars en 2032, contre 5 342 millions de dollars en 2022. L’écosystème des start-ups spécialisées dans l’innovation technologique est florissant aux États-Unis, et de nouvelles opportunités se développent en Europe et en Asie. Les gouvernements locaux investissent massivement dans l’innovation industrielle.

Diversification des marchés et clientèle pour plus de stabilité

Ÿnsect s’est concentrée sur des segments de marché spécifiques, comme l’alimentation animale, limitant ainsi ses options lorsque ces marchés ralentissent. La diversification est un axe clé pour assurer une résilience à long terme.

Mandalore IndustryTech adopte une approche qui encourage la diversification des marchés et des segments de clientèle, afin que les entreprises puissent rebondir face aux imprévus. Nous privilégions des modèles d’affaires qui permettent une certaine flexibilité en termes d’offres et de marchés cibles, assurant ainsi que les entreprises ne soient pas vulnérables à un seul secteur.

Pour éviter les problèmes de concentration rencontrés par Ÿnsect, Mandalore IndustryTech encourage la diversification en ciblant 1000 entreprises technologiques : 40% aux États-Unis, 30% au Japon et 30% dans le reste du monde. Le fonds vise à réaliser 15 à 20 lignes d’investissement, dont 80% avec le bureau de représentation de l’UE pour la commercialisation.

En conclusion : Une approche de Mandalore IndustryTech pour des investissements robustes

La mise en sauvegarde d’Ÿnsect rappelle combien les start-ups doivent faire face à des défis complexes dans des secteurs nécessitant d’importants capitaux. Chez Mandalore IndustryTech, nous avons intégré ces enseignements dans notre thèse d’investissement pour éviter les erreurs qui pourraient compromettre la stabilité de nos participations. En misant sur la planification financière à long terme, la maîtrise opérationnelle, la recherche de rentabilité, l’adaptabilité économique et la diversification, Mandalore IndustryTech vise à construire un portefeuille d’entreprises solides, résilientes et prêtes à traverser les cycles économiques sans perdre de vue leur croissance durable.

Ces principes nous guident pour offrir à nos investisseurs des perspectives de rendement alignées avec une vision de croissance responsable et de pérennité, essentielle dans un contexte de marché en constante évolution.

Corporate Venture as a Service : Un Modèle d’Innovation selon Gartner et la Pratique de Mandalore Partners

Source : Gartner

Dans un monde où l’innovation est devenue essentielle pour répondre aux défis et opportunités des marchés en rapide évolution, les entreprises cherchent des approches efficaces pour intégrer de nouvelles idées et technologies. L’analyse de Gartner sur les modèles d’innovation met en lumière des pratiques structurées comme le Corporate Venture as a Service (CVaaS), un levier puissant pour combiner agilité entrepreneuriale et stratégie d’entreprise. Mandalore Partners, avec son expertise dans l’industrialisation de l’innovation, offre un exemple éclairant de cette approche.

Gartner et le Hype Cycle : Structurer l’Innovation

Selon Gartner, l’innovation doit s’inscrire dans des systèmes structurés pour maximiser son impact. Parmi les méthodes émergentes et éprouvées décrites dans le “Hype Cycle for Innovation Practices”, le modèle de Venture Client et d’autres pratiques similaires, telles que le Minimum Viable Innovation System (MVIS), permettent aux entreprises de collaborer avec des startups tout en minimisant les risques et les coûts. Ces approches se concentrent sur l’accès rapide à des technologies de pointe et à des talents, favorisant ainsi l’agilité et la rapidité d’exécution.

Mandalore Partners : Le Corporate Venture as a Service en Action

Mandalore Partners a développé une méthodologie basée sur le Corporate Venture as a Service, combinant les principes du Venture Client Model avec une approche holistique d’accompagnement. Voici comment :

1. Scouting ciblé des startups

Mandalore Partners identifie des startups alignées sur les besoins spécifiques des entreprises partenaires, en exploitant un réseau mondial et des outils technologiques avancés. En s’appuyant sur des radars technologiques émergents, cette étape permet de réduire le délai entre l’identification d’une opportunité et l’exécution.

2. Co-développement agile

Plutôt que d’intégrer les startups immédiatement, le modèle CVaaS met l’accent sur des projets pilotes rapides pour tester la pertinence des solutions. Mandalore Partners facilite ces tests en assurant un dialogue fluide entre les startups et les équipes internes des entreprises partenaires.

3. Modèle économique flexible

Contrairement aux approches traditionnelles de capital-risque, Mandalore Partners propose des collaborations souples : financements progressifs, partage de revenus ou options d’achat post-pilote. Cela garantit une implication minimale en capital initial tout en maximisant les résultats potentiels.

4. Intégration stratégique

Une fois les solutions validées, elles sont intégrées dans les processus de l’entreprise. Mandalore Partners met en œuvre des stratégies pour harmoniser les cultures organisationnelles, surmonter les résistances internes et pérenniser l’innovation.

Les Avantages de cette Approche

1. Accélération de l’innovation : En collaborant avec des startups spécialisées, les entreprises peuvent accéder à des solutions prêtes à l’emploi.

2. Réduction des risques : Le modèle CVaaS réduit les engagements financiers initiaux, ce qui permet une exploration plus audacieuse.

3. Adaptabilité : L’approche modulaire permet aux entreprises de pivoter rapidement en cas de besoin.

4. Différenciation compétitive : En combinant les ressources internes et externes, les entreprises deviennent plus agiles face aux disruptions.

Gartner et Mandalore Partners : Une Vision Partagée de l’Innovation

Gartner souligne l’importance des collaborations entre entreprises et startups pour maximiser les opportunités d’innovation. Mandalore Partners, avec sa pratique du Corporate Venture as a Service, incarne cette philosophie en aidant les entreprises à transformer les disruptions en avantages concurrentiels.

Pour les organisations prêtes à intégrer l’innovation au cœur de leur stratégie, le modèle CVaaS est une voie prometteuse, alliant souplesse, efficacité et vision à long terme. En combinant les recommandations de Gartner et l’expertise de Mandalore Partners, les entreprises peuvent bâtir un écosystème d’innovation robuste et pérenne.

The Venture Client Model in the Gartner Hype Cycle: A New Era of Corporate Innovation

Source : https://www.eventbrite.sg/e/how-the-venture-client-model-is-revolutionizing-corporate-strategy-tickets-1077442211659

In 2024, the Venture Client Model reached the “Peak of Inflated Expectations” on the Gartner Hype Cycle for New Innovation Practices. This recognition underscores its growing influence as a transformative approach to corporate innovation. However, while the Venture Client Model is making waves, it is important to explore how it complements—or contrasts with—models like Corporate Venture Capital (CVC) as a Service, particularly in the context of Mandalore’s innovation strategies.

What is the Venture Client Model?

The Venture Client Model, pioneered in 2014 by Gregor Gimmy at BMW, focuses on solving corporate challenges by treating startups as suppliers of innovative solutions. Corporations act as paying clients, purchasing and integrating startups’ technologies directly into their operations. Unlike traditional corporate venture capital or innovation programs, this model emphasizes:

• Rapid testing and deployment of startup innovations.

• Transactional relationships without equity investments.

• Focus on immediate operational value rather than long-term financial returns.

By 2024, this model’s inclusion in the Gartner Hype Cycle indicates that it has reached widespread interest but still faces the challenge of proving its sustained value beyond initial excitement.

What is Corporate Venture Capital (CVC) as a Service?

Mandalore’s Corporate Venture Capital as a Service (CVCaaS) model, in contrast, provides corporations with managed investment programs in startups. It offers:

• Equity investments for strategic or financial returns.

• Portfolio management services to identify and nurture high-potential startups.

• A long-term focus on influencing industry trends through strategic ownership.

CVCaaS helps corporations position themselves as stakeholders in emerging technologies while building an ecosystem of innovative startups around their core business.

How the Models Compare

While the Venture Client Model and Mandalore’s CVCaaS have overlapping goals of fostering innovation and startup collaboration, their approaches differ significantly in purpose, implementation, and outcomes. Here’s a side-by-side comparison:

Aspect Venture Client Model CVC as a Service (CVCaaS)

Objective Solve operational challenges through startup solutions. Invest in startups for strategic or financial returns.

Engagement Type Buyer-supplier relationship. Investor-investee relationship.

Risk Low—focused on transaction-level engagement. High—equity investments carry financial risk.

Commitment Short-term, project-based. Long-term equity ownership and influence.

Speed Rapid testing and integration. Slower, due to due diligence and investment processes.

Focus Operational value and innovation adoption. Strategic influence and ecosystem building.

Impact on Startups Revenue generation and market validation. Funding, strategic guidance, and scalability.

Complementary Models for Corporate Innovation

Despite their differences, the Venture Client Model and CVCaaS can work complementarily to create a holistic innovation strategy. Here’s how:

1. From Transactional to Strategic Relationships:

Corporations can use the Venture Client Model to identify and test startups with potential. Once proven, the most promising startups can be brought into a CVC portfolio for equity investment and long-term collaboration.

2. De-risking Innovation:

The Venture Client Model serves as a low-risk testing ground for corporate-startup partnerships. Startups that deliver operational value can transition to the CVC model, where corporations take on a higher commitment through equity.

3. Diverse Objectives, Unified Outcomes:

• Venture Client Model addresses immediate business needs with quick wins.

• CVCaaS builds strategic capabilities and positions the corporation as an industry leader over time.

4. Efficient Resource Allocation:

By leveraging the Venture Client Model, corporations avoid investing equity in untested startups. Only startups with proven results are funneled into the more resource-intensive CVC model.

Mandalore’s Approach: Leveraging Both Models

Mandalore’s Corporate Venture Capital as a Service is designed to align with the strategic goals of its corporate clients, focusing on industry leadership, ecosystem development, and long-term growth. By integrating principles of the Venture Client Model into its strategy, Mandalore offers a dual-track approach:

• Innovation Adoption: Using Venture Client practices to rapidly test startup solutions.

• Strategic Investments: Transitioning successful startups into its CVC portfolio for scaling and deeper collaboration.

This hybrid strategy ensures that corporations benefit from immediate operational improvements while positioning themselves for future industry leadership.

Conclusion: The Gartner Hype and the Future of Innovation

The Venture Client Model’s inclusion in the Gartner Hype Cycle signifies its growing prominence as a practical, low-risk innovation tool. However, as with any innovation approach, its long-term value depends on successful implementation and integration into broader corporate strategies.

By combining the strengths of the Venture Client Model with the strategic depth of CVCaaS, corporations can unlock a two-pronged approach to innovation—immediate results today, strategic advantages tomorrow. Mandalore’s ability to leverage both models offers a blueprint for companies looking to stay competitive in an era of rapid technological change.

The question for corporations is no longer whether to engage with startups but how to engage effectively—and the answer often lies in using the right combination of these complementary models.

グローバルな可能性を解き放つ：Mandalore IndustryTechが日本のスタートアップの欧州進出を支援

Source : https://globalventuring.com/corporate/asia/japans-startups-under-pressure-to-raise-more-money-and-go-global/

近年、日本のスタートアップエコシステムは目覚ましい成長を遂げています。2023年にはスタートアップへの投資額が54億ドルに達し、2013年と比べて25%増加しました。しかしながら、依然として課題は残っています。日本のベンチャーキャピタル（VC）市場は、隣国や世界的な市場に比べて依然として遅れをとっています。たとえば、韓国のVC市場は日本の2倍の規模を誇り、米国市場と比較すると日本はわずか3%に過ぎません。このギャップは、多くの日本のスタートアップが国内市場に焦点を当てているため、海外の投資家を引き付け、国際的に拡大する能力が制限されていることを示しています。

しかしながら、状況は変わりつつあります。政府は、スタートアップが国内外を視野に入れた事業展開を行う必要性を認識し、グローバル展開を促進するプログラムを開始しました。メンターシップ、アクセラレーター、外国企業とのパートナーシップ（例：Techstarsの日本でのアクセラレーター）などの取り組みが、スタートアップに国際的な競争力を持つためのツールやマインドセットを提供しています。それでもなお、特に欧州市場への進出は、多くの日本のスタートアップにとって複雑な課題として残っています。

欧州：日本のスタートアップにとっての未開拓のチャンス

欧州は、日本のスタートアップが市場を拡大するための重要な機会を提供しています。世界最大級の経済圏である欧州連合（EU）は、4億人以上の消費者へのアクセスを提供し、確立された産業基盤と、ロボティクス、オートメーション、IoTなどの分野で革新を推進する姿勢を示しています。しかし、欧州市場に参入するには、単なる意欲だけでは不十分です。戦略的なパートナーシップ、現地での専門知識、大規模な投資が求められます。

Mandalore IndustryTechの登場：日本のスタートアップの課題解決

Mandalore IndustryTech Growth Fundは、日本のスタートアップが欧州市場への参入における障壁を克服するための最適なパートナーです。産業技術に特化したこのファンドは、欧州全域での事業拡大を目指す高成長企業を支援することに焦点を当てています。同ファンドは、ロボティクス、産業用オートメーション、IoT、製造業向けソフトウェアソリューションなどの分野で事業を展開するシリーズB以降の企業への投資を専門としています。

Mandalore IndustryTechが日本のスタートアップを支援する主な方法は以下の通りです：

1. 戦略的投資

Mandalore IndustryTechは、日本のスタートアップが欧州でのプレゼンスを確立するために必要な資本を提供します。現地の製造拠点の設立やR&D機能の拡充など、同ファンドの投資は欧州市場で具体的な価値を創出するよう設計されています。

2. 現地の専門知識とネットワーク

Mandalore IndustryTechの欧州産業エコシステム内での深い結びつきにより、スタートアップは複雑な規制環境を乗り越え、トップクラスの人材を確保し、地域の主要プレーヤーとのパートナーシップを構築することができます。

3. インフラ開発

ロボティクスやIoT分野の日本企業にとって、現地のサプライチェーンやインフラの構築は極めて重要です。Mandalore IndustryTechは、スタートアップが欧州で成功するために必要なリソースを提供します。

4. 欧州の産業目標との連携

欧州連合は、産業セクターのGDPへの貢献を増加させるという野心的な目標を掲げています。たとえば、フランスは2035年までに産業生産を11%（2,570億ユーロ）増加させることを目指しています。Mandalore IndustryTechの焦点はこれらの目標と一致しており、この動きを活用したいスタートアップにとって魅力的なパートナーとなっています。

双方向の価値：日本のスタートアップが欧州にもたらすもの

Mandalore IndustryTechが貴重なリソースと専門知識を提供する一方で、日本のスタートアップも欧州に大きな価値をもたらします。日本はロボティクスや先進的な製造技術の分野で世界をリードしており、そのスタートアップは欧州の産業革新アジェンダにとって理想的なパートナーです。相互に利益をもたらす関係を築くことで、日本のスタートアップと欧州市場は、技術と産業のグローバルな進歩を推進することができます。

成功事例の創出

たとえば、日本のロボティクス企業がMandalore IndustryTechの支援を受けてフランスに製造拠点を設立するシナリオを考えてみてください。同ファンドの資本と戦略的ガイダンスを活用することで、スタートアップは欧州市場に参入するだけでなく、グローバルな信用も強化することができます。同様に、日本のIoT企業が欧州の急成長するスマートファクトリーネットワークに統合するためにMandaloreのリソースを活用することも可能です。

結論：未来のためのパートナーシップ

日本のスタートアップが資金調達とグローバル展開のプレッシャーに直面する中で、Mandalore IndustryTechは欧州での成功への明確な道筋を提供します。日本の技術力と欧州の産業的機会を結びつけることで、Mandalore IndustryTechは持続可能な成長と革新のための枠組みを構築します。

欧州市場への進出を目指す日本のスタートアップにとって、Mandalore IndustryTechは単なる投資家ではありません。それは、グローバルな影響を実現するためのパートナーなのです。共に、産業技術の未来を再定義し、より強力でつながりのあるグローバル経済を構築していきましょう。