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.

AI Startups in PE/VC: Overhyped or Underestimated?

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

The Theater of Hype: Where Valuations Defy Gravity

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

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"AI washing" by skeptics, has created a parallel universe where traditional business fundamentals seem quaint and outdated.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

The Hidden Gems: Where Value Hides in Plain Sight

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

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

The Sophistication Gap: Why Traditional Frameworks Fail

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

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

Sector Dynamics: The Tale of Three Markets

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

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

Investment Philosophy: Threading the Needle

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

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

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

Final Thoughts 

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

Why Corporates Are Launching Their Own Venture Studios

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

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

What Is a Corporate Venture Studio?

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

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

Why the Shift to Venture Studios?

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

1. Faster Innovation Cycles

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

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

2. Strategic Diversification

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

3. Access to Entrepreneurial Talent

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

4. De-risked Corporate Innovation

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

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

5. IP Ownership and Strategic Alignment

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

Real-World Examples of Corporate Venture Studios

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

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

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

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

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

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

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

How Corporate Venture Studios Work

The typical CVS model includes the following steps:

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

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

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

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

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

Common Challenges

Despite the potential, corporate venture studios face some pitfalls:

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

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

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

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

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

Final Thought

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

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

3 Reasons Why LPs Should Look at Studio Models in 2025

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

1. Superior Returns and Risk-Adjusted Performance

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

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

2. Accelerated Time-to-Market and Capital Efficiency

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

3. Market Momentum and Strategic Positioning for the Future

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

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

Final Thoughts 

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

Studio vs Accelerator: Which Model Drives Better Founder Outcomes?

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

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

What Is a Venture Studio?

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

Key characteristics of venture studios include:

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

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

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

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

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

What Is an Accelerator?

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

Features of accelerators include:

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

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

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

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

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

Key Differences

Which Drives Better Founder Outcomes?

  For First-Time Founders: Venture Studios

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

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

• Entrepreneurs who want operational backing

• Those who prefer execution over ideation

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

For Experienced Founders: Accelerators

Accelerators work best for founders who:

• Already have a clear idea or MVP

• Seek exposure, mentorship, and network effects

• Can leverage the accelerator’s brand to raise funding

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

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

A Hybrid Approach?

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

Final Thoughts

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

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

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

How We See the Future of Company Building at Mandalore Partners

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

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

Our Vision: Beyond Capital to Strategic Partnership

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

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

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

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

Our 6 Ss Framework: The Architecture of Success

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

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

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

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

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

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

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

How We're Leveraging Technology Convergence

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

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

Our Take on Market Corrections and Opportunities

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

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

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

What We Predict for the Next Decade

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

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

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

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

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

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

Our Competitive Advantage

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

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

Why This Matters Now

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

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

Our Commitment Moving Forward

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

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

Final Thoughts 

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

How Venture Studios Are Redefining Early-Stage Investment in Europe

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

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

What Is a Venture Studio?

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

They typically provide:

• Business ideas

• Early-stage funding

• Design and development resources

• Marketing and go-to-market strategies

• Recruitment of founding teams

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

The Rise of Venture Studios in Europe

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

Some notable venture studios in Europe include:

• Founders Factory (UK)

• Antler (Pan-European)

• eFounders (France & Belgium)

• Zebra Labs (Germany)

• Rainmaking (Denmark)

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

Why Venture Studios Are Gaining Ground

1. De-risking Early-Stage Investment

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

• Carefully selecting problems worth solving

• Testing ideas before significant capital is deployed

• Bringing in proven operational teams

• Providing institutional knowledge and repeatable processes

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

2. Combining Capital and Execution

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

3. Faster Time-to-Market

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

4. Stronger Founder Matches

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

Case Studies: Success Stories from European Venture Studios

eFounders: Reinventing the Future of Work

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

• Spendesk – a corporate expense management platform

• Front – a shared inbox for teams

• Aircall – cloud-based phone systems

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

Founders Factory: Partnering with Corporates

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

Challenges for the Venture Studio Model

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

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

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

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

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

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

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

The next decade looks bright for venture studios in Europe.

1. Niche Studios Will Emerge

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

• HealthTech

• ClimateTech

• InsurTech

• Food and Agriculture

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

2. More Corporate-Backed Studios

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

3. Studio-VC Hybrids

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

4. More Government and EU Support

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

Final Thoughts

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

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

Investing in Artificial Intelligence: Key Trends for Funds

Methodology: A Fund-Focused View on AI Investment Dynamics

This article draws from market reports, fund manager insights, and AI ecosystem analyses to outline the main trends shaping how venture, growth, and corporate funds are investing in artificial intelligence today. We look at deal activity, sector focus, and strategic themes guiding capital allocation.

In Brief: What Funds Need to Know

• AI deal volume remains strong, with funds focusing on core infrastructure, applied AI, and ethical frameworks.

• Large funds and corporate VCs are increasingly backing AI tools that reshape entire industries.

• Geopolitics, regulation, and responsible AI principles are playing a bigger role in diligence.

• The next wave of winners may emerge from vertical AI not general-purpose models.

AI Investment Is Maturing But the Opportunity Remains Huge

Over the past decade, funds have steadily increased their exposure to artificial intelligence. From early bets on core machine learning platforms to today’s more refined focus on vertical applications (healthcare AI, legal tech AI, climate AI), the landscape has evolved.

AI deal activity remains resilient even in cautious markets, as funds seek companies offering real, scalable applications rather than AI hype.

According to PitchBook, AI and machine learning startups captured over $50 billion in venture funding globally in 2024, with enterprise AI infrastructure and applied AI solutions leading the way.

Key Trend 1: From General AI to Vertical AI

• Fund managers are shifting attention from general-purpose AI tools to sector-specific solutions. Why?

• Vertical AI startups typically show faster paths to product-market fit.

• Customers value AI embedded in their existing workflows (e.g., legal document review, clinical trial analysis).

• Regulatory clarity is stronger in narrow-use cases.

Funds investing in AI are looking for companies that deeply understand their end markets, not just ones building horizontal tools.

Key Trend 2: Responsible AI Moves Front and Center

Ethical AI isn’t just a discussion point anymore, it's a diligence priority.

LPs increasingly expect funds to assess AI safety, bias mitigation, and explainability during investment screening. Startups offering transparency features (e.g., model audits, bias dashboards) are gaining an edge in fundraising.

Funds that position themselves as champions of responsible AI will not only de-risk portfolios but also build brand credibility with partners and regulators.

Key Trend 3: Corporate Venture Capital Is Leading in AI Scaling

Corporate funds are playing a growing role in AI funding rounds especially at the growth stage. Why?

• AI solutions often require integration with large enterprise systems.

• Corporate VCs provide go-to-market pathways AI startups need to scale.

• Strategic investors are focused on AI that directly augments their core business lines.

We see funds co-investing alongside corporates in areas like AI-driven cybersecurity, supply chain optimization, and predictive analytics.

Final Thought: What’s Next for AI-Focused Funds?

The AI gold rush is shifting from model-building to real-world deployment. Funds that succeed will:

• Back founders solving specific industry problems.

• Prioritize responsible, explainable AI.

• Align with partners who can accelerate adoption at scale.

For investors, artificial intelligence isn’t just a theme, it's becoming an essential part of any modern portfolio.

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

Executive Summary

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

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

Our Approach to Impact

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

Our Investment Thesis

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

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

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

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

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

Our Differentiation

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

Our Companies and Their Impact

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

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

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

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

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

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Capsix

Source used for this section: Résultats Impacts iYU Capsix

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

Figure 1: iYU massage robot by Capsix

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

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

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

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

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

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

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

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

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Isahit

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

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

Figure 6: Isahit Platform

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

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

Figure 7: Effects of Isahit on personal growth

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

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

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

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

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

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AUM Biosync

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

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

Figure 9: AUM Biosync platform

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

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

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

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

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

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

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

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

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

Financial Commitment to Protection and Safety

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

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

Enhanced Emergency Response Capabilities

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

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

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

Strengthening Workforce Engagement

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

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

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

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

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Impact Track

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

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

Figure 15: Impact Track platform

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

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

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

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

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

Figure 16: User Feedback on Impact Measurement and Platform Usability

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Conclusion

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

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

Corporate Venture Building : un levier stratégique pour les conseils d’administration

À l’ère du digital, la survie des grandes entreprises dépend de leur capacité à innover rapidement. Alors que l'espérance de vie moyenne d'une entreprise est passée de 90 ans en 1935 à un peu plus de 10 ans aujourd’hui, les conseils d’administration doivent désormais jouer un rôle actif dans la transformation de leurs organisations.

Le Corporate Venture Building : une réponse stratégique

Le Corporate Venture Building (CVB) s’impose comme un levier stratégique puissant pour créer de nouvelles sources de revenus tout en renforçant la résilience de l’entreprise. Ce modèle hybride permet de :

• Tirer parti des actifs internes (clients, données, expertise sectorielle…)

• Reproduire l’agilité des start-ups

• Réduire les risques tout en accélérant l’innovation

Selon les experts, les entreprises qui adoptent ce modèle peuvent multiplier par 14 leurs chances de bâtir un business à forte croissance par rapport aux start-ups classiques.

🎯 4 leviers clés pour réussir un programme de Corporate Venture Building

Fixer des objectifs clairs et ambitieux

Définir une vision long terme, des axes de développement prioritaires, et des indicateurs de performance (OKR) est essentiel. Le conseil d’administration doit aussi statuer tôt sur la stratégie : spin-in (intégration au cœur de l’entreprise) ou spin-out (filiale autonome).

Adopter une logique de portefeuille et de financement progressif

Plutôt que de miser sur un seul projet, les entreprises les plus performantes adoptent une approche portefeuille, avec des décisions d’investissement basées sur des étapes clés (stage-gates). Cela permet d'optimiser le capital investi tout en réduisant les risques.

Mettre en place une gouvernance agile

L’un des freins majeurs à l’innovation est la lenteur des processus décisionnels. Pour réussir, il faut donner aux équipes une réelle autonomie, instaurer un cadre clair, et s’inspirer des meilleures pratiques des fonds de capital-risque.

Attirer et fidéliser les meilleurs talents entrepreneuriaux

Le succès d’un corporate venture repose sur ses fondateurs. Il faut savoir attirer des profils entrepreneurs/intrapreneurs et mettre en place des systèmes d’incentives inspirés des start-ups (participations, phantom shares, autonomie stratégique…).

📌 Leçons du terrain : le cas Axiata Digital

Le groupe télécom Axiata a lancé son programme de CVB en 2014. Résultat : des filiales comme Boost (wallet), ADA (data & marketing) ou Aspirasi (micro-financement) ont levé plus de 100 millions de dollars et généré des relais de croissance majeurs.

Leur recette du succès ?
👉 Une gouvernance claire, un capital dédié, des équipes autonomes, et une approche rigoureuse du portefeuille.

✅Pourquoi les conseils d’administration doivent s’impliquer dès aujourd’hui

Dans un monde où l’innovation est une question de survie, les conseils d’administration doivent :

• Challenger la vision long terme

• Soutenir l’investissement dans des projets disruptifs

• Créer un environnement favorable à l’expérimentation et à la prise de risque contrôlée

Le Corporate Venture Building est bien plus qu’un buzzword. C’est une stratégie d’innovation structurée, mesurable et scalable, capable de transformer en profondeur les modèles économiques.

Cap Table Management and Adverse Talent Selection: Navigating the Startup Growth Minefield

What Is a Cap Table and Why It Matters

A cap table tracks ownership stakes, including founders, employees, investors, and option holders. It determines who owns what—and by extension, who has power and incentives. A clean, transparent cap table is essential for:

• Attracting investors

• Retaining top talent

• Making strategic decisions

The Link Between Cap Tables and Talent

Early hires are often granted equity in lieu of high salaries. But if the cap table becomes bloated or unbalanced, top talent may be disincentivized. For example:

• Too little equity left in the option pool = weak incentive for new hires

• Over-diluted founder stakes = loss of strategic vision

• Complex or unclear ownership = legal or trust issues

This can result in adverse talent selection—where top candidates decline offers due to poor equity packages or unclear growth prospects, leaving the company with suboptimal hires.

Avoiding Adverse Selection

• Plan the Option Pool Early: Allocate enough equity for future hires. Revisit regularly.

• Balance Stakeholder Interests: Align investor returns with talent retention.

• Be Transparent: Clearly communicate equity value, vesting schedules, and growth potential.

• Seek Legal Expertise: Poorly structured cap tables can have long-term legal and tax consequences.

Long-Term Cap Table Strategy

Managing a cap table isn’t just about this round—it’s about the next 5 to 10 years. Founders should:

• Model dilution scenarios in advance

• Keep clean records and use tools like Carta or Pulley

• Align equity strategy with business milestones

Conclusion

Cap table management is one of the most underappreciated disciplines in startup building. Done well, it becomes a growth enabler. Done poorly, it becomes a silent killer. When combined with smart hiring strategies and transparent communication, it lays the foundation for sustainable growth and a high-performing team.

Private Equity in Company Building: Fueling Long-Term Growth

Private equity (PE) is often associated with large-scale buyouts, corporate restructuring, and financial engineering. However, in recent years, PE has increasingly positioned itself as a powerful partner in company building. Rather than simply optimizing existing businesses, many private equity firms are now focused on creating long-term value through hands-on operational support, strategic planning, and growth acceleration.

Understanding Private Equity’s Evolving Role

Historically, private equity was primarily viewed as a financial tool—buy a company, optimize it, and sell it at a profit. While this remains part of the playbook, the role of PE is evolving. Today’s investors are increasingly hands-on, bringing in talent, tools, and methodologies that help startups and growth-stage companies scale sustainably.

These investors are not just financiers; they act as co-builders. They offer deep expertise in areas such as market expansion, talent acquisition, technology integration, and operational efficiency. This model of active ownership is becoming a core element of modern private equity.

Why Private Equity Matters in Company Building

PE firms bring a unique set of advantages to the table:

• Capital Injection: Provides the necessary funding for product development, talent acquisition, or market expansion.

• Strategic Guidance: Helps refine go-to-market strategies and unlock new revenue streams.

• Operational Support: Offers access to a network of experts who can support execution across sales, finance, HR, and more.

• Governance and Accountability: Introduces performance metrics and milestones to ensure progress is measurable and continuous.

This combination of capital and capability makes private equity a strategic ally for founders and executives looking to scale their ventures.

Case Study: From Startup to Market Leader

Consider a SaaS startup with a strong product-market fit but limited resources to scale. A private equity firm steps in, not only providing capital but also bringing in a new COO, revamping the sales strategy, and introducing OKRs (Objectives and Key Results). Within two years, the company expands into three new markets, doubles its revenue, and becomes a category leader.

This illustrates how PE firms can shift from being reactive investors to proactive builders.

Challenges and Considerations

Despite the benefits, founders should be cautious:

• Loss of Control: PE involvement often comes with board seats and voting rights.

• Short-Term Pressure: Some firms may push for rapid returns over sustainable growth.

• Cultural Fit: Not all PE firms align with startup culture and vision.

Choosing the right partner is crucial. Founders should look for investors who understand their vision and are committed to long-term value creation.

Final Thoughts

Private equity in company building represents a strategic evolution in the investment landscape. With the right partnership, it can offer far more than funding—it can be a catalyst for growth, innovation, and long-term success.

Liquidity Along the Path to Exits: Smart Moves for Founders and Investors

Understanding Liquidity Before the Exit

For years, liquidity in startups meant one thing: wait for the big exit. Whether through an IPO or an acquisition, that was the long game for everyone involved: founders, employees, and investors alike. But today’s startup landscape is different. Companies are staying private longer. Funding cycles have expanded. And liquidity, once a distant milestone, is becoming a necessary tool along the way. In this post, we will explore how liquidity works before the exit, the options available to founders and early stakeholders, and what you need to consider if you're building or investing in a company with a long road to a traditional exit.

Why Liquidity Matters More Than Ever

Startups are maturing differently now. Ten years ago, companies like Facebook went public in under a decade. Today, many high-growth businesses operate privately for 10, even 15 years. That long timeline can make it difficult for early employees and investors to access any return on their equity, often their most valuable asset. 

Pre-exit liquidity. It's become a lifeline for founders and team members looking to fund new ventures, pay taxes on stock options, or simply achieve personal financial goals. For investors, it’s a way to de-risk a long-term position without abandoning support for the company.

The Rise of Secondary Transactions

One of the most common ways to unlock liquidity is through secondary sales, when existing shareholders sell their shares to new investors.

Secondary sales don’t generate capital for the company, but they do serve a vital purpose: allowing founders, employees, and early backers to realize value without forcing a company into an early exit.

Platforms like CartaX, Forge, and EquityZen have made this easier by streamlining transactions and verifying pricing. Secondary markets are now playing a bigger role in the startup economy, especially in later-stage companies where demand from outside investors remains high.

Equity-Backed Loans: Borrowing Without Selling

Another liquidity option gaining traction is loans backed by startup equity. In this model, individuals use their shares as collateral to access cash, often without selling a single share.

Here’s how it works:

• A founder or early employee borrows from a lender based on the current valuation of their equity.

• The loan typically carries interest and is structured to be repaid at the time of an eventual exit or liquidity event.

• Some companies even offer internal lending programs as a benefit to key team members.

While this option avoids dilution and keeps cap tables intact, it does carry risks, especially if the company’s valuation drops or an exit is delayed. Still, for those confident in the future of their startup, it’s a compelling way to stay invested and financially flexible.

Private Equity as a New Liquidity Channel

Traditionally, private equity firms entered the picture much later, usually post-exit. But today, many PE firms are acquiring minority stakes in growth-stage startups, offering direct liquidity to founders and early investors.

This approach has become especially appealing in tech. Firms like KKR, General Atlantic, and Insight Partners are investing in companies that may not go public for years but have strong fundamentals and clear revenue models. These investments give the startup fuel to grow, while giving shareholders a chance to take some chips off the table.

Best Practices for Startup Liquidity

If you're considering liquidity for yourself or your team, here are a few best practices to keep in mind:

1. Get Clear on the Company’s Position: Liquidity should support growth, not signal weakness. Ensure the company is in a strong financial and strategic position before exploring options.

2. Protect the Cap Table: Too many secondary sales or poorly timed loans can impact the cap table and scare off future investors. Maintain transparency and cap table hygiene.

3. Understand the Tax Implications: Secondary sales and equity-backed loans can have complex tax consequences. Involve a tax advisor early in the process.

4. Communicate with Stakeholders: Be transparent with your board, co-founders, and team. Liquidity decisions affect everyone, not just the seller.

Final Thoughts: Liquidity Is Now Part of the Growth Journey

Liquidity is no longer a one-time event at the end of a company’s story—it’s now a thoughtful part of the journey. Founders don’t need to wait a decade to see the value they’ve built. Employees shouldn’t have to walk away from great companies just to pay down loans or fund life goals.

As long as it’s managed with care, liquidity can strengthen startups, fuel new ventures, and keep everyone motivated along the way.