Venture Labs Insights

#TeachMeTuesday We often assume that venture capital (VC) simply “finds the best startups.” But what actually shapes which high-tech ventures get funded - especially when science and universities are involved? 👉 This paper dives into a crucial but underexplored space: VC investment in university spin-offs - firms built to commercialize academic research. 📄 In a @Journal of Corporate Finance article, @Xiaoqing Maggie Fu, Richard Harrison, and @Dongfu Franco Li analyze VC investment patterns in university spin-offs in China. We already know that VC plays a central role in scaling innovation. It brings not just funding, but networks, expertise, and credibility. That is why in the GII VC has lots of variables and that we "track" VC closely at World Intellectual Property Organization – WIPO - https://lnkd.in/eeb2brM8 and https://lnkd.in/esuVZ7uV (using VC to uncover the global top 100 top innovation clusters). But the key question is: how do investors navigate the uncertainty and information gaps around these science-based ventures? This paper offers three important insights: 🔍 1. No simple bias against university spin-offs Despite higher uncertainty, private VCs do not systematically avoid university spin-offs. The idea that academic ventures are “too risky” is more nuanced than often assumed. 🏛️ 2. Government VC plays a catalytic role Rather than crowding out private investment, government VC can crowd in private capital - acting as a signal of quality and reducing uncertainty. 🤝 3. Signals matter—deeply University spin-offs attract more VC when founders send credible signals: - Strong initial equity commitment (“skin in the game”) - Willingness to share control - Clear value proposition rooted in science 🧠 What this implies for innovation policy Before capital flows, there is a problem of information and trust. Science-based ventures are complex, uncertain, and long-term. Investors are not just funding ideas—they are interpreting signals under uncertainty. 🏛️ What could better support look like? Building on the paper, three directions stand out: 🔔 Strengthen early-stage signaling environments (e.g. proof-of-concept funding, translational programs) 🔔 Use public VC strategically to de-risk and certify high-potential science ventures 🔔 Support founders not just financially, but in governance, credibility, and investor readiness I wonder if anybody knows how the evidence looks in OECD type economies, feel free to put papers in the comments. 🚀 This connects directly to the upcoming Global Innovation Index 2026 theme: “Powering Entrepreneurs at the Frontier of Science: Turning Pilots into Pipelines.” Dealroom.co Lorena Rivera León Science-based start-ups - whether in quantum, biotech, clean energy, or advanced materials - face exactly these challenges: long timelines, high capital intensity, and deep uncertainty. #TeachMeTuesday

𝗩𝗲𝗻𝘁𝘂𝗿𝗲 𝘀𝘁𝘂𝗱𝗶𝗼𝘀 𝗻𝗼𝘄 𝗵𝗮𝘃𝗲 𝘀𝘁𝗮𝗻𝗱𝗮𝗿𝗱𝘀 And we're making it free for everyone. After years analyzing 500+ studios globally, we've released the Venture Studio Index as an open-source framework through the Venture Studio Forum. This isn't just another methodology. It's the first standardized approach for defining, measuring, and reporting venture studio performance, enabling true transparency and comparability across the ecosystem. 𝐖𝐡𝐚𝐭'𝐬 𝐢𝐧𝐜𝐥𝐮𝐝𝐞𝐝: - VSI definitions and standard KPIs - Report formats and templates - Cost structure methodology across five capital categories - Guidance on interpreting and using VSI outputs Studios can now benchmark operations, report to stakeholders consistently, and align with industry best practices. Investors get standardized due diligence frameworks. Researchers gain consistent data for ecosystem analysis. The goal isn't complexity, it's clarity. We've designed this as a practical tool that translates operational differences into actionable investment insights. 𝐓𝐡𝐢𝐬 𝐦𝐚𝐭𝐭𝐞𝐫𝐬 𝐛𝐞𝐜𝐚𝐮𝐬𝐞: The venture studio model needs standards to attract institutional capital at scale. By standardizing evaluation criteria, we're creating the common language that unlocks the next phase of growth for systematic company creation. This is part of 9point8 Collective's "give-first" commitment to the Venture Studio Forum and community, ensuring high-quality tools are accessible to all, not locked behind consulting fees. 𝐑𝐞𝐚𝐝𝐲 𝐭𝐨 𝐝𝐢𝐯𝐞 𝐝𝐞𝐞𝐩𝐞𝐫? 📄 Read the full VSI methodology: https://lnkd.in/erZjJvgH 📰 Explore the foundational articles that shaped VSI: https://lnkd.in/ezJRXmSS https://lnkd.in/eQwjCZVp https://lnkd.in/eyJC7mAG  https://lnkd.in/eSUwmjfg https://lnkd.in/eHvAMz-M 🌐 Access all VSI resources: https://lnkd.in/eK8cNVFp Who else believes the venture studio ecosystem deserves standardized evaluation tools?

As part of my role at HearstLab, I regularly engage with investors, sit on early-stage boards, and meet with startup founders. Across these conversations, one thing is clear: the venture market in 2025 is lopsided—tight for many, but frothy for a few. Three key takeaways on startup investing in 2025: 🔹 Valuations are all over the place. AI-first and deep tech startups are commanding sky-high multiples (20–200x revenue!), while traditional SaaS companies are seeing more moderate valuations. Growth-stage SaaS multiples are typically in the 4x–8x range, but can stretch higher for capital-efficient, high-retention businesses. Consumer is even lower. If a startup isn’t demonstrating strong growth, operational efficiency, and execution, valuation multiples take a hit. 🔹 The bar has moved. “Pretty good” isn’t cutting it. Investors expect execution against plan, growth with capital efficiency, and a repeatable sales process with a strong pipeline. Without these, raising capital is an uphill battle. 🔹 Exit strategies are top of mind. Investors want to see realistic pathways to liquidity—whether through PE rollouts, market consolidation, or strategic buyouts. The days of funding growth at all costs are long gone. The Good News? 💰 There’s still capital. Strong companies with great founders and clear product-market fit are getting funded. 🚀 AI continues to drive excitement across industries, from enterprise software to compliance, fintech, and healthcare. 🙌 Investors are backing impact-driven businesses, even in a shifting political and economic climate. At HearstLab, we’re actively investing and always open to introductions and referrals. If you’re seeing similar (or different) trends, let’s discuss!👇

Just published our 2025 VC Forecast Mid-Year Update, analyzing Q1's $121 billion in venture funding—the highest quarterly total since Q2 2022. Key findings from analysis of PitchBook, CB Insights, Carta, and National Venture Capital Association data: -Seed-to-Series A progression has declined to 9% (from historical 15-20%) -60% of 2019 vintage funds report zero distributions after 5 years -46% of seed-stage investments are now bridge rounds -First-time fund formations dropped 64% year-over-year (77 vs. 215 in 2023) The data reveals significant structural shifts. While firms like Andreessen Horowitz, New Enterprise Associates (NEA), and Tiger Global deploy capital into large AI rounds, analysis projects the early stage funding gap could reach $30B by 2026. This concentration—with the top 5% of firms controlling 73% of capital—creates both challenges and opportunities. Historical precedent suggests market dislocations often catalyze innovation in funding models. Y Combinator emerged during the 2005 downturn, while Techstars launched amid the uncertainty of 2008. Full analysis: https://lnkd.in/dqkhuDBP Share your thoughts and observations about the state of early-stage startup funding! #VentureCapital #StartupFunding #MarketAnalysis #Innovation #InvestmentTrends #VentureStudios

Accelerators and venture studios don’t just back climate tech. They build it. 🛠️ Founding teams. 🧪 Techno-economics. 📞 Customer intros. 📊 Stress-testing the first business model. Before most climate startups reach VC decks, they’ve already been forged in these early-stage ecosystems - and yet we rarely spotlight the people doing that groundwork. So we decided to change that. 📝 Today, we published the second edition of Endgame Capital’s Perspectives series: a report on the frontline of climate venture building - from labs and pilots to companies with scale potential. From methane slip in shipping, to soil microbiomes in agriculture, to closed-loop systems for steelmaking, the contributors in this edition are backing the next wave of early bets. The report includes sharp insights from: 👷🏼♂️ Maiko Schaffrath at Undaunted: Tackling climate change with innovation 🏢 Tyler Hamilton at MaRS Discovery District 💨 James Hayward at Cambridge Future Tech 🔋 Roel Van Diepen at InnoEnergy 🌱 Jean Boudillon at StartLife 🚢 Gyen Ming Angel at Prosemino 🏭 Sara Jones at Carbon13 🤖 Matthew Jaeh at Techstars 🧶 Brittany G. at Foresight Canada Each piece is short and tactical. No fluff, just a glimpse into what’s really working and where they see the next wedge of opportunity. 👇🏼 Read the report below! 👇🏼 If you’re building something in climate tech, or supporting those who are, this is the early scaffolding that shapes what comes next. Kudos to everyone who contributed and to my teammate Jinna Li & John Mairlot at Endgame Capital who helped pulled it all together. #ClimateTech #VentureStudios #Accelerators #ClimateStartups #VentureCapital #Perspectives

Unlocking Startup Success: Key Insights from Blume Ventures's 'The Omega Files - Episode 2' Blume VC's last report offers a comprehensive analysis of Fund I's performance, shedding light on factors influencing venture success. Some of the most intensive insights include: ✅ Founder Dynamics: Multi-founder startups demonstrated superior performance compared to single-founder ventures due to collaborative leadership, risk-sharing, and diverse skills. Stability in leadership roles and well-defined responsibilities played a crucial role in long-term success. ✅ Capital Efficiency: Frugality and effective runway management proved more impactful than raising excessive funds. Startups practicing disciplined capital allocation often achieved sustainable growth and reduced dependency on continuous external funding rounds. ✅ Market Size Matters: Companies targeting larger Total Addressable Markets (TAM) consistently generated stronger returns, highlighting the importance of selecting markets with both scale and long-term growth potential. ✅ Timing & Pivots: Strategic pivots and optimal market timing were pivotal in scaling businesses successfully. Companies that adapted quickly to market feedback often outperformed those that stuck rigidly to initial strategies, showcasing the importance of flexibility in execution. Blume VC’s commitment to transparency and data-driven insights offers valuable lessons for the Indian startup ecosystem. These findings emphasize the importance of strategic capital management, market selection, and collaborative leadership as pillars for building scalable, sustainable businesses. #StartupSuccess #VentureCapital #BlumeVC #LeadershipInsights #GrowthStrategies

The venture studio model is quickly becoming one of the most effective ways to launch and scale startups. Why? Because it’s designed to reduce risk, maximise efficiency, and significantly increase the chances of success for both founders and investors. Consider these stats: - 75% of venture studio startups advance to Series A, compared to just 42% of traditional startups. - Venture studios are 5x more productive, creating significantly more startups than traditional incubators or accelerators. - 62% of venture studios achieve positive returns within three years of launching their first brand — a stark contrast to the 26% of traditional venture-backed companies achieving the same milestone. - Studios are faster to market, leveraging in-house expertise to launch brands with precision and speed. The key difference lies in the structure: Hands-On Support: Studios work side-by-side with startups, providing resources, expertise, and guidance from day one. De-Risked Investments: By focusing on validated ideas and leveraging shared resources, studios reduce the failure rate of early-stage ventures. Repeatable Success: A portfolio approach means diversifying risk across multiple startups while maintaining focus on scalable growth. For investors, this model offers higher success rates, faster ROI, and a smarter approach to startup building.

Here are some key learnings from my ongoing PhD project about venture builders Also referred to as venture studios, start-up studios, company builders and venture factories, there are many different ways of organizing a venture builder. Here are key learnings rendering from my research: 👇 ➡️Equity Split - Venture builders typically make initial capital investments and retain equity in the startups they help build. I have seen venture builders retaining everything from a 25-86% equity stake. ➡️Luck and timing - Success in startups often involves a mix of hard work and luck—being in the right place at the right time. Experienced venture builders recognize that some elements of success are beyond their control. Failure is always a possible outcome. ➡️”Entrepreneurial platform” and not “education” - Most studios function as a commercial platform to reduce the barriers to entrepreneurship rather than as educational programs. Entrepreneurs aren’t joining to learn in a traditional sense; they’re there to actively build companies with support. Learning is a secondary effect. ➡️Team-First vs. Idea-First - Different studios use different models for venture creation. Some focus on assembling the team first and then finding a business idea, while others start with a concept and then recruit a suitable team. There’s no single right answer; successful models may vary. ➡️Process and validation – Venture builders bring immense value by providing structured processes, checklists, and methodologies (like design thinking and lean startup). This approach ensures ideas are validated thoroughly before scaling, helping founders avoid costly missteps. ➡️Phases of growth - Venture builders see startup growth in phases, often distinguishing between activities to reach "pre-product-market fit" and activities "post-product-market fit”. ➡️Testing and elimination - The goal is to identify and discard unviable ideas early. Venture builders conduct data-driven testing and validate business models rigorously to minimize false positives, ensuring only the best ideas proceed. ➡️ Guidance in early stages - Venture builders offer extensive guidance to startups in the initial stages. This includes preparing for funding, reviewing applications, screening candidates, and providing support in recruitment and decision-making. ➡️Ambition and culture - Gathering ambitious people creates an environment of creativity and action. People who are driven and have a strong desire to build something tend to thrive in this collaborative setup. 💡Initiating and investing in the new ventures they build together with entrepreneurs, makes venture builders committed and motivated to strive for excellence. Would you consider collaborating with a venture builder when starting your next venture? #venturebuilders #venturestudios #startupstudios #companybuilders #venturefactories _____________________ Did you like this post? Connect or Follow John-Erik Hassel

Could the humble Venture Studio steal the crown from the mighty Venture Capitalist? "Welcome to the Venture Studio era" proclaims John Cowan, and what a proclamation it is. Cowan’s VC extinction thesis begins with the 'four horsemen of the Power Law Cartel’ - the four VC firms exerting an unhealthy and disproportionate influence over the ‘Unicorn market’ - and moves to the plummeting 2024 VC fundraising levels (down 48% from 2021) along with the dismal failure rates of VC seed-stage startups (86%). According to Cowan, the VC model is broken with their focus on finding unicorns, creating ‘irrational valuations and a lack of genuine innovation as firms focus on scaling a few high-potential companies at the expense of broader, more sustainable growth.’ In contrast, Venture Studios achieved a ‘44% improvement in company success rates’, much of this attributed to ‘deeper involvement’ and being ‘embedded in operations’ compared with the VC ‘distance from daily operations’. This enables Venture Studio operators to better understand: the market, technology, competitive landscape, and potential problems, all providing early risk mitigation and enhancing the likelihood of success. The Venture Studio’s ‘supportive framework’, ‘bringing on board seasoned entrepreneurs’, and ‘extensive network and expertise’ is juxtaposed with the ‘isolated environment of traditional VC-backed startups.’ Cowan cites research Venture Studios achieve an average internal rate of return (IRR) of 53%, more than double the 21.3% average for traditional venture funds and argues a ‘model yielding higher returns with lower risk and greater efficiency will attract more investors over time’. As for me, the rise of Venture Studios is a delicious prospect, for all the reasons above, and more. The experienced core team swarming around the newly-born startup, the rapid prototyping, innovation, and testing, the willingness to pivot and morph, the deliberate resource constraints (necessity is the mother of invention), and the cross-pollination possibilities nurturing multiple startups simultaneously. Cowan notes Max Pog’s research on the explosion of Venture Studios in recent years and believes this reflects an ‘increasing recognition of the venture studio model's advantages’ and ‘testament to the growing acceptance and effectiveness of the venture studio model, indicating a fundamental shift in how startups are built and funded.’ I, for one, hope he’s right. #venturestudio #startups #venturecapital

𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐑𝐞𝐚𝐥𝐢𝐭𝐲 𝐂𝐡𝐞𝐜𝐤 𝐅𝐨𝐫 𝟐𝟎𝟐𝟓 Venture funding hit a 2-year high in Q4’24 – but not for the reasons you think. ❖ Key Insights from the State of Venture 2024 Report → Global deal volume is at an 8-year low, dropping 19% YoY. → AI is absorbing venture capital – 37% of all funding went to AI startups, an all-time high. → Late-stage startups are staying private longer, median time to IPO has jumped to 7.5 years. → Mega-rounds ($100M+) dominated Q4, making up 60% of total funding. ❖ What This Means for Founders → AI is a magnet for capital, but early-stage valuations are sky-high –, another hype cycle in the making. → The days of easy IPOs are over – longer funding cycles and tougher investor scrutiny are here to stay. → Late-stage startups are getting creative – secondary sales and structured deals are replacing traditional exits. ❖ If You're Raising Capital in 2025, Be: → Strategic – The funding environment demands sharp positioning. → Resilient – Expect longer timelines, conservative term sheets, and a greater emphasis on profitability. → AI-conscious – Investors are prioritizing AI-driven innovation, but differentiation is key. Want more insights? Connect with me and comment "AI" below. I’ll DM you a curated list of VCs investing in AI Companies (Seed Round) in USA. #VentureCapital #Startups #InvestmentTrends #AI #VC