The Rise of Thematic Venture Capital Funds: Climate, Deep Tech, and Impact

Venture capital is changing shape. For decades, generalist funds dominated the landscape, chasing outsized returns across consumer, fintech, and SaaS. But as the market adjusts after pandemic highs, a new type of investor is stepping into the spotlight: thematic venture capital funds. These funds concentrate on specific areas like climate, deep tech, and impact. They are not merely chasing a trend - they are reshaping how capital meets purpose, with measurable results that suggest they are here to stay.

A Market Holding Its Ground

The last few years have been turbulent for venture markets globally. Deal volume is down, valuations have corrected, and late-stage funding has become scarcer. Yet within this volatility, thematic funds have shown remarkable resilience.

PwC’s State of Climate Tech 2023 report found that while overall VC and private equity investment fell by nearly half between 2022 and 2023, climate-tech investment dropped by a smaller margin - about 40%. That still amounted to roughly $32 billion globally in 2023, and since 2020, cumulative climate investment has surpassed $140 billion across 4,000 deals. According to Silicon Valley Bank’s Future of Climate Tech report, U.S. clean energy and power companies alone attracted $7.6 billion in VC funding in 2024, a 15% increase year-over-year, with more than three-quarters of deals at seed and Series A stage.

These figures show that while venture capital has cooled broadly, investors continue to channel capital into funds aligned with structural shifts like the energy transition, technological sovereignty, and social resilience.

Climate Funds: From Metrics to Unicorns

Climate tech is the clearest example of this thematic resilience, and its story is increasingly supported by data. World Fund, a European climate VC, analyzed more than 150 climate-tech unicorns created between 2020 and 2024 in Europe and the U.S. Their research revealed that over 60% of these unicorns met their “Climate Performance Potential” criteria, meaning their technologies could deliver significant emissions reductions. By contrast, only a small minority of startups in general deal flow met this threshold. Even more telling, over 80% of climate unicorns that went bankrupt had failed to meet those impact criteria.

The implication is striking: measuring real climate performance is not just an ethical filter, but a predictor of financial resilience. In other words, impact is becoming a risk-management tool.

One case that illustrates this dynamic is Berlin-based Enpal, Europe’s fastest-growing solar company, which became a unicorn in 2021. By combining a subscription model with household solar installation, Enpal has raised more than €1.6 billion in financing. Its climate impact is measurable in the tons of CO₂ avoided each year, and its financial backing is a testament to how climate metrics can underpin durable business models.

Deep Tech and the Long View

eyond climate, deep-tech thematic funds are also gaining ground. These funds focus on frontier innovations - quantum computing, semiconductors, space, and advanced materials - that require longer time horizons and highly specialized knowledge. Historically, such ventures have been considered too capital-intensive for most generalist VCs. But governments and sovereign wealth funds are increasingly backing deep-tech funds, recognizing that technologies of this nature are critical for economic competitiveness and security.

In Europe, for instance, funds like European Innovation Council Fund and Future Ventures have stepped in to bridge the financing gap for deep-tech startups. A case in point is PsiQuantum, a U.S.-U.K. company working on photonic quantum computing, which has raised more than $600 million from backers including BlackRock and Microsoft’s venture arm. For investors, the appeal lies in both the defensibility of the science and the long-term potential to dominate trillion-dollar markets.

Impact as Risk Mitigation

Impact-focused thematic funds are no longer sidelined as philanthropic capital. Instead, they are building track records of resilience by combining rigorous impact metrics with disciplined financial frameworks. Large LPs such as pension funds and endowments are under pressure to align with net-zero goals or the UN Sustainable Development Goals, and this capital demand is flowing into dedicated impact funds.

For example, BlueOrchard, one of the world’s oldest impact investment firms, has mobilized more than $10 billion across 100 countries, targeting both financial inclusion and climate resilience. Similarly, Leapfrog Investments, an emerging-markets impact investor, has consistently delivered market-rate returns while reaching over 400 million people with essential services. The data suggests that aligning with social and environmental goals does not preclude strong returns - if anything, it de-risks them.

Policy and Capital Efficiency

A key driver of thematic funds’ rise is regulatory support. In the U.S., the Inflation Reduction Act has created clear incentives for investment in clean energy and electrification, while the EU’s Green Deal has set ambitious targets for decarbonization. These policy frameworks create predictable demand and lower the risk of market adoption for startups.

At the same time, thematic funds are embracing capital efficiency in ways that generalist investors often overlook. Early-stage climate deals are smaller and more disciplined than the frothy rounds of 2021. Founders are learning to do more with less, and thematic funds, with their sector expertise, can provide not only capital but also strategic partnerships and customer access

Global Case Examples

Thematic investing is no longer confined to Silicon Valley or Berlin. In late 2023, Climactic, a new U.S. seed-stage climate VC, closed a $65 million inaugural fund led by seasoned founders, signaling confidence in early-stage climate investing despite a tougher funding environment.

In Europe, 2023 saw climate-tech investment surge to a record quarter in Q3, with $8.8 billion invested, according to Dealroom. Meanwhile, in MENA, Flat6Labs has emerged as one of the most active climate-tech investors, supporting startups in sustainable agriculture, energy, and water. These regional examples underscore the global nature of the thematic shift.

The Next Chapter

Thematic funds are proving that specialization is not just a marketing angle - it is a structural advantage. By focusing on climate, deep tech, and impact, these investors are aligning with megatrends that will define the next several decades. They are demonstrating that measuring emissions avoided, funding quantum breakthroughs, or scaling essential services in emerging markets can all be pathways to competitive returns.

The rise of thematic venture capital is a reminder that markets evolve with the world’s biggest challenges. For investors, the lesson is clear: purpose and performance are no longer at odds. The funds that marry domain expertise with disciplined execution will not only survive the current venture downturn, they will likely define the next era of growth.

How Venture Builders Reduce Startup Failure Risks

Startups often feel like walking a tightrope in a storm: one wrong step, one misstep in timing, market, or team, and everything falls. It’s no surprise that about 90% of startups fail overall. But in 2025, a different model is proving it can lower those odds: the venture builder. These are organizations that don’t just invest - they build. They nurture ideas, assemble teams, offer infrastructure, and walk alongside founders through early storms.

Here’s how venture builders are reducing failure risks - and what data and case studies show about their effectiveness.

The Stakes: Understanding Startup Risk

The numbers are stark. Many reports show failure rates over time are steep: roughly 10% of new startups fail within their first year, and between years two through five, majority of failures happen. By year ten, few survive. These aren’t just abstract stats, they represent teams who ran out of runway, misread market demand, or couldn’t piece together strong execution. That’s the baseline. Venture builders aim to shift those odds by intervening early on the common failure triggers.

What Venture Builders Do Differently

Venture builders provide what many startups struggle to assemble quickly: clarity of idea, team strength, operational support, and effective validation.

You can think of it this way: instead of solo founders trying to juggle everything - product, user-feedback, hiring, legal, finances - the builder supplies scaffolding. They often supply shared services (legal, HR, strategy), access to domain experts, and a process for iterating ideas before major investment. This means startups born inside builder models often avoid big, early mistakes.

There are multiple pieces to this, but one that researchers call out often is the capacity to test product-market fit before “going big.” Because builders usually demand early user feedback, safe prototyping, proof of concept. That early feedback loop weeds out ideas with weak demand.

Data & Case Studies: Proof in Practice

• Venture Studio Survival & Alive Ratios

A study called Big Venture Studio Research 2024 looked at hundreds of venture studios, hybrid builders, and corporate builders. They found that hybrid venture studios (those that combine venture studio activities with things like corporate building, accelerator, VC fund) have much higher survival rates: for every studio that closes, there are ~10.86 that remain alive. Corporate builders had ~9.3:1. Pure venture studios had lower survivorship: ~4.73:1.(That means builders which diversify or bring in hybrid functions tend to reduce risk further.

• Experienced Builders vs Novice Ones

McKinsey recently published findings in “The Three Building Blocks of a Successful Venture Factory” that more experienced venture builders are about twice as likely to achieve success compared to newcomer studios. Over time, with repeat efforts, their output (in revenue in fifth year) can be 12 times higher than that of novice studios. That suggests that venture builders don’t just reduce risk by the model - they get better at reducing risk as they build more companies.

• Corporate Venture Building vs Traditional Startup Paths

An article by CreativeDock noted that corporations using venture building (internally creating new startups or spin-outs) report success rates around 66% for their ventures, far above the 20-30% or so typical for venture capital backed startups or corporate ventures without structured building. They also say that venture building-born startups achieve better IRRs (~44% higher on average) compared to traditional startups, faster transitions from seed to Series A, and earlier exits (on average under 4 years) compared to 6-7 years typical elsewhere.

Human Stories Behind the Data

Consider a venture builder that continuously launches several projects per year. With the builder model, a given project might start not with a blank page, but with a research phase. Founders test assumptions: Is there demand? Can the technology or product be built affordably? Who is competition? These early experiments expose flaws early - low demand, wrong features - so adjustments are made before major investment.

Another important case is around the “business-building muscle.” McKinsey points out that entities that build many ventures develop repeated systems: standard ways to onboard teams, validate ideas, launch MVPs, spin-outs. Over time, they make fewer rookie mistakes - less duplicated effort, fewer misfires - so each new project starts from a stronger foundation.

What Failures Are Reduced

By virtue of these mechanisms, venture builders tend to reduce risk in several specific ways:

• Team risk: builders often match people with complementary skills rather than solo founders. They bring in domain experts early.

• Market risk: they test demand, refine product-market fit before big spends.

• Execution risk: shared infrastructure and expertise mean better supply chain, legal, hiring, finance practices early.

• Timing & capital risk: because builders tend to pace investment, control burn, and have staged funding, they avoid over-extension before product is solid.

These interventions don’t eliminate risk entirely. But they shift the risk curve substantially.

Broader Trends & What Investors Are Saying

Investors in 2025 say they want a higher floor - some guarantee of minimal failure, clearer paths from concept to growth. They like models where founders aren’t isolated. Where you can see how an idea was validated, how the team was assembled. Where overhead is shared and costs are lean early.

Corporations also find benefit: many large firms are adopting corporate venture building to create new growth engines. In one survey by EY-Parthenon, nearly 45% of executives from surveyed companies reported they have launched ventures in the last five years that now generate $100 million+ in annual revenue. Venture building gives them structure to do that.

Looking Ahead: What Makes a Builder Even More Robust

The data suggests certain traits make some venture builders better at reducing risk:

• Repetition: builders who launch many ventures learn faster.

• Hybrid or diversified models: studios that also do corporate venturing, VC funds, accelerators tend to have higher survival of their ventures.

• Strong validation early: demand testing before full build.

• Deep domain or technical competence: where builders understand industry/technology well, they avoid mis-positioning or under-estimating costs.

The Next Chapter

Startups will always carry risk. That’s part of what gives them upside. But a model growing in legitimacy in 2025 is one that doesn’t treat failure as inevitable, but as something to manage. Venture builders are showing how structured support, domain expertise, shared infrastructure, and repeated experience can tilt the odds in favor of survival.

For founders thinking of starting under a builder, the message is hopeful: you don’t have to brace for failure alone. For investors, it means better early signals, stronger teams, and less wasted cost.

In a world where capital is tighter and demands are higher, venture builders are proving to be more than trend - they might be the most reliable path through the startup storm.

Comment fonctionne le modèle économique d’un Venture Studio ?

À première vue, un Venture Studio peut sembler mystérieux. Ce n’est ni tout à fait un incubateur, ni un accélérateur, ni un fonds d’investissement classique. Pourtant, il combine un peu de chacun de ces rôles, tout en ajoutant quelque chose de plus fondamental : il construit ses propres startups de l’intérieur. Alors, comment fonctionne le modèle économique de ces structures qui attirent de plus en plus d’investisseurs et de fondateurs à travers le monde ?

Pour le comprendre, il faut revenir à l’essence même du Venture Studio : sa mission est de transformer des idées en entreprises viables, en assumant une partie des risques initiaux et en mutualisant les ressources nécessaires au lancement. Mais cette promesse doit reposer sur un modèle économique robuste.

L’investissement initial : le moteur du studio

Contrairement à un fonds de capital-risque traditionnel, qui attend qu’une startup existe avant d’y investir, un Venture Studio prend l’initiative. Il commence par financer la phase zéro : la recherche d’idées, la validation des problèmes de marché, la création des premiers prototypes.

Cet investissement initial provient généralement du studio lui-même, grâce à son propre fonds ou à des partenaires financiers. Par exemple, le Venture Studio parisien Hexa (anciennementeFounders) injecte environ 800 000 € dans chaque projet dès la phase initiale. Ce capital sert à recruter une équipe fondatrice, développer un MVP (produit minimum viable) et valider les premiers retours utilisateurs. En d’autres termes, le studio prend à sa charge une étape que la plupart des startups doivent assumer seules, souvent avec des moyens limités.

Le partage d’équité : un alignement d’intérêts

L’une des spécificités du modèle économique des Venture Studios est le partage d’équité. Puisque le studio assume le risque financier et opérationnel dès le départ, il reçoit une part importante du capital de la startup en échange.

Chez Hexa, par exemple, le studio conserve environ 30 % de l’équité lorsque la startup est « spin-offée », c’est-à-dire qu’elle prend son envol comme entité indépendante. Cette part peut varier selon les studios, certains allant de 20 % à 50 % selon la taille de l’investissement initial et le niveau de ressources mises à disposition.

Ce mécanisme aligne les intérêts : le studio, les fondateurs et les investisseurs ultérieurs ont tous intérêt à ce que l’entreprise grandisse et réussisse.

Des revenus différés mais potentiellement massifs

Le modèle économique d’un Venture Studio n’est pas conçu pour générer des revenus immédiats. Contrairement à une agence de conseil qui facture ses services ou à un incubateur qui demande des frais d’entrée, un studio mise sur le long terme.

Ses revenus viennent principalement de deux sources :

1. Les exits (revente d’actions lors d’acquisitions ou d’introductions en bourse).

2. La valorisation croissante de son portefeuille à mesure que ses startups lèvent des fonds et se développent.

C’est un pari patient, mais qui peut rapporter gros. L’exemple le plus emblématique reste celui de Flagship Pioneering, un Venture Builder basé à Boston, qui a contribué à la création de Moderna. Lorsque la biotech est entrée en bourse en 2018, la valorisation a explosé, générant un retour colossal pour Flagship.

Le coût de fonctionnement : une machine bien huilée

Bien sûr, maintenir un Venture Studio implique des coûts élevés. Ces structures emploient souvent des dizaines de personnes en interne: designers, développeurs, experts en marketing, recruteurs, juristes. Ce sont eux qui fournissent les services mutualisés aux startups en construction.

Ces coûts sont couverts par le fonds du studio, parfois complété par des financements externes. En mars 2025, Hexa a ainsi levé 29 millions d’euros via un financement bancaire structuré en crédit revolving, destiné à soutenir ses activités de création et à garantir une liquidité régulière. Ce type de financement illustre bien que les studios fonctionnent comme de véritables entreprises, avec une gestion de trésorerie et une stratégie financière sophistiquées.

Une logique de portefeuille

Un Venture Studio ne mise pas sur une seule idée, mais sur un portefeuille de startups. Chaque année, il peut en lancer plusieurs, avec l’idée que toutes ne réussiront pas. Mais si une ou deux deviennent des scale-ups internationales, elles compenseront largement les échecs éventuels.

C’est ici que le modèle économique prend tout son sens : il repose sur la diversification et sur un taux de réussite supérieur à la moyenne. Selon le Global Startup Studio Network, environ 84 % des startups issues de studios réussissent à lever un seed round, et 72 % atteignent la Série A, contre environ 42 % pour les startups traditionnelles. Ces chiffres montrent que le rendement d’un portefeuille issu d’un Venture Studio est statistiquement plus élevé et plus stable.

L’intérêt croissant des investisseurs

De plus en plus de fonds traditionnels et d’investisseurs institutionnels s’intéressent aux Venture Studios. Pour eux, le modèle présente un double avantage :

• Une réduction du risque grâce à la validation précoce des projets.

• Une meilleure rentabilité potentielle grâce à la part significative du capital détenue par le studio.

Un rapport de McKinsey souligne d’ailleurs que les startups issues de Venture Builders expérimentés génèrent en moyenne 12 fois plus de revenus au bout de cinq ans que celles lancées dans un cadre classique.

Vers une industrialisation de l’innovation

En observant le modèle économique des Venture Studios, on comprend qu’il ne s’agit pas seulement d’un mode de financement alternatif. C’est une véritable industrialisation de l’entrepreneuriat. Là où les startups classiques reposent sur l’intuition d’un fondateur isolé, le Venture Studio systématise la recherche d’idées, leur validation et leur exécution.

Cette rigueur explique pourquoi tant d’investisseurs voient dans les studios un modèle du futur : ils transforment un pari incertain en une stratégie d’innovation plus prévisible.

Le prochain chapitre

Le modèle économique d’un Venture Studio est donc un pari patient : investir tôt, assumer les coûts de construction, prendre une part du capital et attendre que les pépites émergent. Cela demande des moyens, de la discipline et une vision à long terme.

Mais les chiffres parlent d’eux-mêmes : les studios produisent des startups plus solides, plus rapides à croître, et avec un risque réduit pour les investisseurs. Dans le prochain cycle d’innovation, ce modèle ne sera plus périphérique : il deviendra une infrastructure centrale de la création d’entreprises.

En fin de compte, un Venture Studio, ce n’est pas seulement une usine à startups. C’est un moteur économique où chaque idée devient une opportunité, chaque risque une expérience, et chaque succès une preuve que l’innovation peut être à la fois créative et méthodique.

Funding the Future: The Role of VCs and Sovereign Funds in Singapore’s Venture Studios

The venture studio model has redefined how startups are born. Instead of betting on lone founders, venture studios build companies from the ground up, pairing entrepreneurial talent with capital, infrastructure, and networks. But behind this model lies a critical question: who funds the future?

In Singapore, the answer increasingly comes from two powerful sources - venture capital firms and sovereign wealth funds. Together, they are shaping not just the trajectory of venture studios but the kinds of companies that will define Asia’s innovation landscape over the next decade.

Why Funding Matters in Venture Building

Traditional startups often begin with a small seed round, testing ideas with limited resources. Venture studios flip that dynamic. They require upfront investment to design infrastructure, hire operational teams, and support multiple ventures simultaneously. The model is capital-intensive, but it also increases the odds of producing sustainable startups.

This is why the involvement of venture capital (VCs) and sovereign wealth funds is so significant. They provide not only the capital but also the long-term vision needed to sustain venture studios through the uncertain early stages of building science-driven or industry-specific companies.

The Numbers Speak

In 2022, Singapore attracted more than US$11 billion in startup funding, according to Enterprise Singapore, with a growing share flowing into venture-building initiatives. The global venture studio market itself is projected to reach US$42 billion by 2027, up from around US$20 billion today, as reported by Global Startup Studio Network.

Within Singapore, sovereign wealth funds play a particularly influential role. Temasek Holdings, with assets exceeding US$287 billion, has been steadily increasing its exposure to early-stage innovation through vehicles like Xora Innovation, its venture-building arm. Meanwhile, GIC, with more than US$770 billion in assets under management, has also stepped up its participation in deeptech and sustainability-focused ventures, often co-investing alongside studios and VCs.

Case Study: Temasek and Xora Innovation

Temasek’s launch of Xora Innovation in 2019 was a milestone for Singapore’s venture building ecosystem. Xora focuses on commercializing breakthrough scientific research in fields like climate tech, healthcare, and advanced manufacturing. Unlike traditional VC, Xora doesn’t just invest - it co-builds, bringing together teams of scientists, operators, and entrepreneurs to create companies from scratch.
One example is its investment in Eavor, a geothermal technology startup developing closed-loop systems for renewable energy. By backing such ventures, Temasek shows how sovereign funds can align financial returns with global sustainability goals while anchoring these efforts in Singapore.

The Role of Venture Capital Firms

Venture capital firms, too, are leaning into the venture studio model. Global firms like Sequoia Capital and Vertex Ventures (the latter headquartered in Singapore) have backed startups emerging from studios, drawn by the de-risked nature of ventures that already have structured support and validation.

Antler, one of the world’s most prominent venture builders with a major base in Singapore, has partnered with VCs to scale its portfolio. Since its launch, Antler Singapore has created more than 100 startups, many of which have raised follow-on capital from leading VCs. This collaboration demonstrates a virtuous cycle: studios generate investable companies, while VCs provide the growth capital to scale them globally.

Why Sovereign Funds Matter More in Singapore

Singapore’s sovereign wealth funds bring something that private VCs alone cannot - patient capital. DeepTech, climate, and biotech startups often take years to become commercially viable. Sovereign funds like Temasek and GIC are uniquely positioned to absorb these long timelines while maintaining conviction in long-term returns.

Moreover, their participation signals confidence to the market. When a sovereign fund co-invests in a venture, it often catalyzes additional investment from global VCs, corporates, and even governments. This multiplier effect strengthens the ecosystem and accelerates the scale-up of ventures born in Singapore’s studios.

Singapore as a Regional Magnet for Capital

The presence of sovereign wealth funds also amplifies Singapore’s role as a capital hub for Southeast Asia. With over 650 million people, Southeast Asia represents one of the world’s fastest-growing digital economies, projected by Google and Temasek to reach US$330 billion by 2025. By anchoring venture studios in Singapore and funding them with sovereign-backed capital, the city-state effectively positions itself as the launchpad for ventures targeting this massive market.

The Challenges Ahead

While the alignment of VCs and sovereign funds has fueled the rise of Singapore’s venture studios, challenges remain. Venture building is resource-heavy, and not all studios will survive. There is also the question of focus: should capital prioritize moonshot DeepTech ventures with global ambitions, or scalable consumer-tech plays better suited for regional adoption?

Striking the right balance will be key. Too much emphasis on short-term gains risks diluting the transformative potential of venture building. Too much focus on moonshots without market validation risks creating science projects that never scale.

Looking Ahead: Funding the Next Decade

What’s clear is that the combination of VCs and sovereign wealth funds gives Singapore’s venture studios a uniquely powerful advantage. Venture capital brings agility and global networks, while sovereign funds provide stability and patience. Together, they create an ecosystem capable of nurturing bold ideas through the long road from concept to commercial success.

In the next decade, expect to see more sovereign-VC partnerships in Singapore’s venture building space, particularly in fields like climate tech, AI, and advanced manufacturing. These are areas where global challenges intersect with Singapore’s ambition to lead in innovation.

For founders, the message is clear: in Singapore, you don’t just get access to capital - you get access to aligned capital, designed to see you through the toughest years of building. For investors, the takeaway is equally strong: if you want exposure to the next generation of high-impact ventures in Asia, Singapore’s venture studios are where the story begins.

Singapore’s Role in Shaping the Next Wave of DeepTech through Venture Building

DeepTech refers to technologies rooted in scientific discoveries and engineering breakthroughs and it is increasingly seen as the foundation for solving humanity’s toughest problems. From climate resilience and quantum computing to advanced healthcare and space exploration, the promise of DeepTech extends far beyond incremental innovation. But building DeepTech startups is notoriously hard: they require long development cycles, heavy capital investment, and multidisciplinary expertise.

This is where Singapore is quietly taking center stage. Over the last decade, the city-state has positioned itself as one of Asia’s most compelling hubs for DeepTech innovation, not through chance but through a deliberate embrace of venture building. By pairing research talent with structured startup creation, Singapore is charting a path that could make it a global leader in translating science into scalable businesses.

The DeepTech Imperative

DeepTech is not just hype. According to Boston Consulting Group, DeepTech startups globally attracted more than US$60 billion in funding in 2023, double the levels seen in 2016. Yet the barriers to entry remain high. Unlike software startups, where a minimum viable product can be built in weeks, DeepTech ventures often require years of research before commercial viability.

Singapore has recognized both the challenge and the opportunity. With limited natural resources, the country has long invested in knowledge as its most strategic asset. Today, that strategy is paying off as its universities and research institutions - such as the National University of Singapore (NUS) and A-STAR - are increasingly integrated into venture-building pipelines.

A Government-Backed Ecosystem

The Singapore government has been one of the most active global backers of DeepTech venture building. Through initiatives like the SGInnovate Deep Tech Nexus Strategy, launched in 2017, the country committed more than US$150 million to support the translation of science into companies. SGInnovate itself has directly invested in over 100 DeepTech startups spanning fields like autonomous robotics, medtech, and agritech.

This model is designed not just to fund startups but to systematically derisk them. By offering labs, pilot facilities, and structured venture building programs, Singapore reduces the “valley of death” between academic research and commercial application.

Case Study: A-STAR Spinouts

One of the best examples of Singapore’s DeepTech venture building comes from A-STAR, the Agency for Science, Technology and Research. Over the past five years, A-STAR has spun out dozens of startups in biotech, advanced materials, and AI. Companies like Nanoveu, which develops nanotechnology-based films for optics and antiviral protection, have scaled regionally thanks to early support from A-STAR’s venture co-creation efforts.

Another case is RWDC Industries, a biodegradable plastics startup that originated in Singapore and has since raised more than US$135 million in growth funding. RWDC’s success underscores how research-driven ventures can become globally relevant with the right support structure.

Temasek and the Long-Term View

DeepTech requires patient capital, and few institutions embody patience better than Singapore’s sovereign wealth fund, Temasek. Through its venture-building arm Xora Innovation, Temasek partners with scientists and entrepreneurs at the very earliest stages, often before a commercial application is fully proven.

This long-term approach is critical. Traditional VCs often shy away from DeepTech because of long timelines, but venture studios like Xora de-risk the process by building operational capacity around founders. This allows breakthroughs in quantum computing or synthetic biology to be pursued without the pressure of unrealistic short-term returns.

Singapore as Asia’s Testbed

Another advantage lies in Singapore’s role as a testbed for emerging technologies. With its compact size, advanced infrastructure, and supportive regulators, the city-state often serves as a “living laboratory” for pilots.

For example, autonomous vehicle trials, drone delivery pilots, and next-gen biotech therapies have all been deployed in Singapore earlier than in most regional markets. This testbed status makes the country an attractive base for DeepTech venture builders: startups can validate complex technologies locally before scaling across Asia’s 650 million-strong Southeast Asian market.

Talent at the Core

DeepTech thrives on talent density, and Singapore has invested heavily in building a global research workforce. The country attracts scientists and engineers through initiatives like the Research, Innovation and Enterprise (RIE) 2025 Plan, which allocated US$25 billion to science and innovation over five years.

What sets Singapore apart is how this talent is integrated into venture building. Instead of leaving researchers isolated in academia, programs connect them with entrepreneurs, operators, and investors who can help translate breakthroughs into market-ready companies. This culture of collaboration is one reason why Singapore consistently ranks among the top 10 in the Global Innovation Index.

Looking Forward: Singapore’s DeepTech Ambition

The next decade will determine whether Singapore’s DeepTech bets pay off. The foundations are strong: government backing, venture studios, sovereign wealth participation, and global research talent. The challenge lies in scaling beyond local pilots into global leaders.

If Singapore’s studios can consistently produce DeepTech unicorns - companies solving real-world problems in energy, healthcare, and materials - it will cement its place not just as Asia’s DeepTech hub but as one of the world’s great innovation ecosystems.

For founders, Singapore offers a rare combination: scientific depth, supportive policy, and venture-building structures that reduce the odds of failure. For investors, it provides a gateway to high-potential DeepTech startups in Asia with the added security of government and sovereign fund alignment.

The message is clear: while Silicon Valley may dominate software, the next generation of world-changing science-driven startups could well be born in Singapore’s venture studios.

Why Singapore is Emerging as Asia’s Hub for Venture Building

Singapore has long been known as a global financial center, but in recent years, its ambitions have expanded beyond banking and trade. Today, it is carving out a reputation as Asia’s leading hub for venture building, the model where ideas are not just funded but systematically transformed into startups through the structured support of venture studios. While Silicon Valley remains the gold standard for startup culture, Singapore is demonstrating that the future of innovation in Asia might follow a different playbook.

The rise of venture building in Singapore is not accidental. It is the result of a deliberate strategy combining government foresight, investor appetite, and the city-state’s unique position as a connector between East and West. For founders and investors alike, Singapore is increasingly where the region’s most ambitious ideas are being tested, scaled, and launched into the world.

The Numbers Behind the Story

Singapore’s startup ecosystem has grown at a remarkable pace. According to Enterprise Singapore, the number of tech startups in the country jumped from around 2,800 in 2003 to more than 4,500 in 2023, employing tens of thousands of people and contributing significantly to GDP. In 2022 alone, venture funding in Singapore reached US$11 billion, accounting for more than 50% of all funding across Southeast Asia, according to DealStreetAsia.

But what’s most striking is not just the raw funding numbers. It is the structural shift toward venture building. More than 30 venture studios now operate in Singapore, ranging from independent builders like Antler, which has a strong base in the city, to corporate-backed and government-supported studios that focus on deeptech, fintech, and sustainability. This density is unmatched anywhere else in Asia, positioning Singapore as the natural hub for the model.

A Supportive Government Framework

One of Singapore’s most powerful advantages is the role of government policy. Agencies such as Enterprise Singapore and EDB (Economic Development Board) have actively fostered venture building by co-investing in studios, providing grants, and streamlining regulatory pathways for new businesses.

For instance, in 2020, the government launched the Startup SG Founder Venture Building Program, a scheme designed specifically to support venture builders in co-developing startups with entrepreneurs. This move signaled not only recognition of the venture building model but also a willingness to bet national resources on it.

The regulatory environment also plays a role. With a reputation for clarity, efficiency, and fairness, Singapore provides a rare sense of stability in a region where startups often grapple with red tape. For deeptech or highly regulated sectors like fintech and biotech, this regulatory clarity can make the difference between stagnation and scale.

Case Studies: Successful Venture Builders

The global venture builder Antler made Singapore its launchpad in Asia, running its residency program for founders and producing startups that have since expanded globally. In just five years, Antler Singapore has backed more than 500 founders and created over 100 startups, several of which have gone on to raise significant Series A and B rounds.

Another standout is Xora Innovation, the venture building arm of Temasek, Singapore’s sovereign wealth fund. Unlike traditional venture capital, Xora works directly with scientists and entrepreneurs to transform advanced research into scalable deeptech ventures. This model reflects Singapore’s ambition not just to create more startups but to anchor globally relevant ones in high-tech, defensible fields. These examples show how Singapore is positioning venture building not as a fringe experiment but as a central pillar of its innovation economy.

Location as a Strategic Advantage

Geography has always been part of Singapore’s success story, and venture building is no different. Situated at the crossroads of Southeast Asia, the city-state offers immediate access to a consumer market of over 650 million people, a young, digital-native population hungry for innovation. At the same time, Singapore remains deeply connected to Western capital markets, making it a natural bridge for global investors seeking exposure to Asia.

This dual access - emerging market scale on one side, developed-world capital on the other - is a rare combination. For venture studios looking to create startups that can expand regionally and scale globally, Singapore offers the perfect launchpad.

Why Founders Are Choosing Singapore

It’s not only investors and policymakers driving this momentum. Founders themselves increasingly see Singapore as the best place to build. The city offers one of the most connected startup communities in Asia, access to a deep pool of talent, and a cosmopolitan culture that values experimentation.

Entrepreneurs also appreciate the reduced risk profile that venture building offers. Instead of going it alone, they join studios that provide initial capital, expert support, and access to networks, dramatically improving their odds of success. For many, especially in capital-intensive sectors like biotech or climate tech, this support is the difference between a promising idea and a real company.

Looking Ahead

As venture building matures globally, Singapore is uniquely positioned to lead its adoption in Asia. With strong government support, growing investor participation, and an ecosystem of studios producing measurable results, the city-state has built the foundations of a venture building hub that rivals the best in the world.

The next chapter will depend on whether these studios can consistently produce companies that scale to unicorn status or become regional champions. If they do, Singapore won’t just be a hub for venture building - it will be the place where Asia’s most important startups of the next decade are born.

For founders, the message is clear: if you want to test bold ideas in Asia with a higher chance of survival, Singapore is the place to start. For investors, the message is equally strong: the most interesting stories in venture building are not just being written in Silicon Valley - they are unfolding right here, at the crossroads of the East.

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.

How Regulation Will Shape Fintech Innovation in Europe by 2030

As Europe continues to evolve as a global fintech powerhouse, regulation is poised to play a decisive role in shaping the pace, direction, and nature of innovation across the sector. From PSD3 and open finance frameworks to digital identity rules and crypto asset regulation, the future of European fintech will be inextricably linked to how policymakers approach oversight and enablement. By 2030, the relationship between regulators, startups, and financial incumbents may define which markets thrive and which stagnate.

The European Regulatory Landscape in Motion

The European Union has historically taken a proactive stance toward digital financial services. Initiatives like PSD2 (the Second Payment Services Directive) enabled the rise of open banking, paving the way for an ecosystem where banks must share customer data with licensed third-party providers. The upcoming PSD3 and Open Finance Regulation are expected to expand this even further, standardizing access to broader financial data and services beyond payments.

Regulatory harmonization across EU member states is creating a fertile ground for pan-European fintech models. However, the patchwork nature of national implementations still poses a challenge for startups seeking to scale. By 2030, alignment efforts—such as the Digital Finance Package and cross-border regulatory sandboxes, could dramatically lower barriers to entry and expansion.

Compliance as a Competitive Advantage

Historically, regulation has often been viewed by startups as a constraint. But modern fintech players increasingly see compliance as a strategic differentiator. RegTech solutions (regulatory technology) are helping firms automate KYC/AML, transaction monitoring, and reporting obligations, making it easier for even early-stage ventures to navigate complex compliance requirements.

Venture studios and accelerators are also embedding compliance frameworks into their support models, ensuring that new fintechs are ‘compliant by design.’ In a world where trust and security are paramount, especially with increased scrutiny around data privacy and cybersecurity, building with regulation in mind from day one could unlock greater user adoption and investor confidence.

Key Areas of Regulatory Influence by 2030

1. Open Finance and Data Portability

By 2030, open finance regulations are expected to empower consumers to share data across a wide range of financial services, including mortgages, pensions, insurance, and investments. This could drive the emergence of hyper-personalized fintech platforms, enabling tailored financial advice and products based on a 360-degree view of a user’s financial life.

2. Digital Identity and eIDAS 2.0

The revised eIDAS regulation aims to create a unified framework for digital identity across Europe. A trusted digital ID system would streamline onboarding, payments, and verification processes, making it significantly easier for fintech startups to scale across borders and compete with incumbents.

3. Crypto, Tokenization, and MiCA

The Markets in Crypto-Assets (MiCA) regulation, which provides a legal framework for crypto-assets across the EU, is expected to unlock significant growth in the token economy. From asset-backed tokens to decentralized finance (DeFi), MiCA could reduce risk and increase institutional participation in crypto innovation.

4. Green Finance and ESG Standards

The EU’s Sustainable Finance Disclosure Regulation (SFDR) and taxonomy frameworks are already influencing investment and product design. Fintechs offering green lending, carbon tracking, or impact investing services will benefit from more clarity around ESG reporting and alignment.

5. AI and Algorithmic Accountability

As AI becomes more prevalent in underwriting, credit scoring, and financial advice, regulators are proposing oversight mechanisms to ensure transparency and prevent discrimination. By 2030, successful fintechs will need to demonstrate ethical and explainable AI practices as part of their product offering.

The Role of Supervisory Technology (SupTech)

It’s not just fintechs using technology, regulators are embracing it too. SupTech refers to the use of technology by supervisory agencies to improve oversight and efficiency. From real-time transaction monitoring to AI-driven anomaly detection, these tools will make it easier for regulators to keep up with the speed of innovation without stifling it.

For fintech founders, this means greater clarity and faster feedback loops, especially when engaging with innovation hubs or regulatory sandboxes. It could also open the door to more dynamic, data-driven policy making.

Final Thought

By 2030, regulation will not simply be a set of constraints that fintechs must work around, it will be a key enabler of innovation, trust, and cross-border scale. As Europe pursues harmonized frameworks around open finance, crypto, ESG, AI, and digital identity, the fintechs that align themselves early with these regulatory shifts will be better positioned to lead. Investors, founders, and studios alike must view regulation not as a hurdle, but as an essential design layer for building the financial services of the future.

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.

What Makes a Fintech VC Fund Stand Out in a Saturated Market?

The global fintech boom has led to a surge in venture capital (VC) funds targeting financial technology startups. From digital wallets and neo-banks to embedded finance and crypto infrastructure, the competition among VC firms has never been fiercer. With thousands of funds now chasing the next fintech unicorn, differentiation is no longer a nice-to-have; it's an existential imperative. So, what truly makes a fintech VC fund stand out in today’s saturated market?

Deep Domain Expertise

Generalist VC funds often struggle to keep up with the fast-evolving fintech landscape. The most successful fintech VC firms distinguish themselves through deep domain expertise. They don’t just invest in fintech; they understand its regulatory frameworks, technological underpinnings, and historical cycles. These firms hire partners and advisors with backgrounds in financial services, economics, and emerging technologies. Their teams include former bankers, regulators, and tech entrepreneurs who have built and scaled financial products.

This level of specialization allows fintech-focused VCs to provide strategic value beyond capital. Whether it’s navigating a complex licensing process, introducing a startup to banking partners, or validating go-to-market strategies, deep expertise builds trust with founders and increases the likelihood of portfolio success.

Proprietary Deal Flow

In a crowded environment, access to the best deals is a key differentiator. Top-tier fintech VC funds cultivate proprietary deal flow through long-standing relationships, accelerator partnerships, and founder networks. Some even launch their own venture studios to incubate startups from the ground up.

Proprietary deal flow not only gives these funds early access to promising startups but also allows them to avoid overpriced rounds or me-too investments. It also enables greater influence over initial company formation, terms, and strategic direction. Funds with exclusive access to category-defining founders stand apart from those relying on inbound pitches or demo days.

Value-Added Capital

Gone are the days when writing a check was enough. Fintech founders expect more from their investors: real operational support, product feedback, hiring assistance, and access to potential customers. Leading fintech VCs offer hands-on value that impacts core business outcomes.

Some funds, for instance, have in-house legal teams to help with regulatory filings, or talent partners who assist with hiring top-tier engineers and compliance officers. Others offer custom playbooks for entering new markets or frameworks for B2B fintech sales. These tailored resources build stronger relationships with portfolio companies and increase retention rates in future funding rounds.

Brand and Thought Leadership

Strong brand equity enables fintech VC funds to attract both capital and talent. Funds that consistently publish deep-dive reports, sector analyses, and founder interviews become known for their insights and credibility. Thought leadership can also influence public perception, drive inbound interest from top-tier startups, and strengthen a fund’s negotiating position.

This brand building often extends to event hosting, webinars, podcasts, and active social media engagement. A fund with a strong public presence is often seen as more founder-friendly, more connected, and more influential within the broader ecosystem.

Strategic LP Base

The composition of a VC fund’s limited partners (LPs) can also be a differentiator. Fintech funds that attract strategic LPs,such as banks, insurers, or payment processors, can offer portfolio companies more than just capital. These LPs often become early customers, design partners, or acquirers.

Furthermore, LPs with strong distribution channels can help portfolio companies achieve scale faster. For example, a health-focused fintech backed by an insurance giant may gain early traction by integrating directly into an existing claims or benefits system.

Global and Regulatory Insight

As fintech increasingly becomes a global endeavor, VC firms with international reach gain an advantage. Funds that understand regulatory nuances across different jurisdictions can help startups expand internationally and avoid common pitfalls. Some funds even employ policy experts or maintain relationships with regulators to stay ahead of legislative changes.

Cross-border knowledge also enables fintech VCs to spot arbitrage opportunities, for example, funding a remittance company targeting corridors overlooked by U.S. or EU competitors, or supporting embedded finance models in underbanked markets.

Emphasis on Responsible Innovation

With increased scrutiny from regulators and consumers, fintech VCs that promote responsible innovation have a long-term edge. This includes emphasizing data privacy, ethical lending practices, financial inclusion, and ESG alignment. Funds that guide their portfolio companies toward sustainable practices are better prepared for regulatory changes and reputational risks.

Final Thought

In a saturated market, standing out as a fintech VC fund requires more than just capital and buzzwords. The most differentiated funds are those that combine deep domain expertise, exclusive access to high-quality startups, hands-on support, strategic partnerships, and a forward-looking approach to regulation and ethics. As fintech continues to evolve and mature, funds that offer authentic, strategic value, not just capital, will lead the next generation of innovation and enterprise growth.

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.

Fintech & Private Equity: A Growing Intersection of Value

The fintech revolution has reshaped how we bank, invest, insure, and manage money. At the same time, private equity (PE) has evolved into one of the most influential forces in global finance. Now, these two financial powerhouses are increasingly converging, transforming not only how capital is allocated but also how innovation is scaled. The intersection of fintech and private equity is creating significant value, unlocking new business models and financial outcomes that weren’t possible a decade ago.

Why Private Equity is Embracing Fintech

Private equity firms have historically excelled at acquiring, restructuring, and growing traditional businesses. However, the rise of fintech has presented a unique opportunity: to inject capital into tech-driven financial services with high growth potential and scalability.

Several factors are drawing PE toward fintech:

1. Digital Transformation in Financial Services: As financial institutions digitalize, fintech companies are often at the forefront. PE firms see value in owning or scaling platforms that help banks, insurers, and asset managers modernize operations.

2. Recurring Revenue Models: Many fintechs, especially those offering SaaS or embedded finance solutions, operate on predictable, subscription-based revenue models, appealing to PE investors who value stable cash flow.

3. Underserved Market Segments: Fintech is often aimed at niches ignored by traditional finance. From gig economy lending platforms to SME-focused banking-as-a-service, these underserved segments provide rich growth opportunities.

Key Sectors Drawing Attention

PE firms are increasingly investing in specific fintech subsectors where innovation and margins align well:

• Payments and Embedded Finance: These offer long-term contracts and scalability. PE sees this as a digital utility play, especially in emerging markets where mobile-first solutions dominate.

• Insurtech: As the insurance sector lags in digitization, PE investors are funding insurtechs that use AI and automation to improve underwriting, claims, and customer experience.

• RegTech and Compliance: Regulatory compliance is expensive and complex. Fintechs offering automated compliance and risk management solutions are prime acquisition targets for PE-backed roll-ups.

• Lending Platforms: From BNPL to SME loan marketplaces, lending is being reimagined. PE’s appetite grows for platforms with strong underwriting technology and data-driven risk models.

How Fintechs Benefit from PE Involvement

While fintechs often start with VC funding, PE involvement introduces new benefits at later stages:

• Operational Efficiency: PE investors bring strong expertise in cost control, governance, and process optimization, critical for scaling fintechs efficiently.

• Buy-and-Build Strategies: Through roll-ups, PE can help fintechs expand into new geographies or adjacent services by acquiring and integrating smaller firms.

• Access to Distribution Channels: PE firms often have broad business networks and can facilitate partnerships with banks, corporations, or government bodies to accelerate fintech growth.

• Longer Investment Horizon: Unlike VCs that seek early exits, PE firms are often comfortable holding assets longer, which aligns better with fintechs that need time to mature and monetize.

Challenges at the Intersection

Despite the synergy, there are challenges fintech founders and PE investors must navigate:

• Cultural Clash: PE firms typically bring rigorous financial discipline, while fintech founders may prioritize innovation and rapid iteration. Aligning goals is critical.

• Regulatory Complexity: As fintech companies scale, they often move into highly regulated territories. PE firms must be ready to support compliance frameworks globally.

• Overvaluation Risks: Some fintech sectors, especially during boom periods, can be overvalued. PE investors must conduct due diligence to avoid buying into hype cycles.

Future Outlook: What to Expect in 2025 and Beyond

The trend of private equity funding fintech is set to continue accelerating. As fintech matures, it’s no longer a fringe innovation sector but a core part of the financial ecosystem. PE firms increasingly view fintech as infrastructure, essential to how modern finance operates.

Moreover, we can expect to see more fintech-focused PE funds emerging, more cross-border M&A activity, and deeper integration between fintech solutions and traditional finance portfolios. Additionally, the rise of ESG-aligned fintechs (e.g., sustainable finance tools, climate risk models) offers PE investors a new path to drive both impact and returns.

Final thought

The growing intersection of fintech and private equity represents a powerful confluence of innovation and capital. While fintech brings agility, customer-centricity, and cutting-edge technology, private equity provides the structure, strategy, and scale needed to turn promising startups into dominant players. Together, they are not only driving financial returns but also redefining how modern financial services are built and delivered.

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.

The Rise of Vertical Fintechs in 2025: Why Niche Is the New Scalable

In 2025, the financial technology (fintech) landscape is undergoing a dramatic transformation. As horizontal players that aim to serve everyone face challenges in personalization and regulation, vertical fintechs, startups that target specific customer segments or industries, are taking the lead. From fintechs focused on freelancers to those designed for farmers or immigrants, the niche is no longer small, it's the new scalable.

What Are Vertical Fintechs?

Vertical fintechs are companies that design their products, services, and experiences around the unique needs of a specific market segment. Unlike horizontal fintechs like PayPal or Revolut that aim to provide general services to all consumers, vertical players dive deep into the challenges, behavior, and expectations of a narrowly defined group.

Examples include:

• Lendtable, which focuses on helping low-income workers access employer-matching 401(k) contributions.

• Daylight, a digital bank designed for LGBTQ+ individuals.

• Till, a fintech solution for landlords and tenants to manage rent flexibility.

In 2025, the rise of these verticals reflects a broader trend: consumers and businesses are demanding more tailored financial services, and the companies that deliver them are gaining traction.

Why Vertical Fintechs Are Thriving in 2025

1. Deep Customer Understanding = Product-Market Fit

The biggest advantage of vertical fintechs lies in their laser-sharp focus. By honing in on one specific user group or industry, these companies build intimate knowledge of pain points. That insight leads to stronger product-market fit, better retention, and faster word-of-mouth adoption.

For example, a vertical fintech serving migrant workers can customize onboarding, offer remittance tools, and provide local-language support, all features that horizontal platforms might overlook.

2. Better Regulatory Navigation

Financial services are inherently regulated, and different industries or customer segments often have different compliance requirements. Vertical fintechs can more easily navigate the regulatory landscape by focusing on one set of rules. For instance, a fintech that builds solutions for cannabis businesses can specialize in meeting the unique banking and licensing laws that apply to that niche.

In 2025, tighter regulatory frameworks in Europe, the U.S., and Africa are making this advantage more visible. Governments are more receptive to solutions that cater to underserved communities without overgeneralizing.

3. Embedded Finance Opportunities

Vertical fintechs often integrate financial services directly into existing workflows of their target industries. This is known as embedded finance. Whether it's payment tools inside agricultural supply chains or credit lines within e-commerce marketplaces for artisans, fintechs are transforming into essential infrastructure rather than standalone apps.

By embedding financial services where users already spend time, vertical fintechs in 2025 are improving user adoption and building stickier platforms.

4. Capital Efficiency & Lower CAC

Horizontal fintechs often burn massive capital trying to attract a wide user base. In contrast, vertical fintechs enjoy lower customer acquisition costs (CAC) due to precise targeting and high referral rates within tight-knit communities.

In 2025, investors are paying more attention to capital efficiency amid shifting venture capital dynamics. That makes vertical fintechs attractive for funds focused on sustainable growth.

5. Strategic Partnerships & Ecosystem Building

Vertical fintechs are not just building apps, they’re constructing ecosystems. Many partner with nonprofits, trade associations, cooperatives, and even government agencies to deliver value at scale.

An example is a vertical fintech in East Africa that partners with local agricultural cooperatives to offer weather-indexed crop insurance. 

Case Study: Vertical Fintech in Agriculture

Take the agricultural sector. Farmers often face unique financial challenges such as seasonal income, lack of credit history, and  price fluctuation. In 2025, a new wave of fintech startups is emerging that offer:

• Digital lending tailored to planting and harvest cycles

• Crop insurance embedded into seed purchases

• Real-time commodity pricing through mobile apps

These products aren’t just financial tools, they’re lifeline.

Challenges to Scaling Vertically

While vertical fintechs offer tremendous upside, they also face some hurdles:

• Limited TAM (Total Addressable Market): Narrow focus can sometimes limit scalability if not properly planned.

• Dependency on Ecosystem Partners: Many vertical fintechs rely on third-party players (e.g., clinics, NGOs, schools) for customer distribution.

• Product Complexity: Building hyper-specific tools often leads to longer development cycles and complex support needs.

However, these are not deal-breakers. Many vertical fintechs are addressing these issues by expanding into adjacent verticals once they gain traction or by layering horizontal capabilities (e.g., payments, lending) on top of a strong vertical core.

The Future of Vertical Fintechs

As we move through 2025 and beyond, several trends suggest vertical fintechs are here to stay:

• AI and personalization will allow for even deeper tailoring of services to niche needs.

• Open banking regulations in Europe and parts of Africa are making it easier for vertical players to access and build on top of existing financial infrastructure.

• Corporate venture studios are also starting to incubate vertical fintechs, seeing them as quicker paths to innovation in legacy industries like health, construction, or logistics.

Final Thought

In 2025, the fintech game is no longer just about size or volume, it’s about depth, relevance, and impact. Vertical fintechs are proving that when it comes to financial innovation, the riches truly lie in the niches. By serving specific audiences with empathy and precision, they are redefining what scalability means in financial services. For founders, investors, and corporates alike, vertical is not just a strategy, it’s the future.