Startup studios are reshaping the way new companies are launched—offering a structured, repeatable approach to building startups. If you've ever wondered how some entrepreneurs seem to launch multiple successful businesses back-to-back, chances are they’re backed by a startup studio.
In this guide by Novelventures, we’ll walk you through exactly what a startup studio is, how it operates, how it makes money, and whether it's the right model for your entrepreneurial journey.
A startup studio, also known as a venture studio or startup foundry, is an organization that builds startups in-house from the ground up, rather than investing in existing ones. It operates like a startup factory—generating ideas, validating them, assembling founding teams, and launching companies in a repeatable system.
Startup studios are different. They ideate, build, and launch startups internally, often acting as the co-founder with shared operational resources, tech teams, and playbooks.
Some of the most successful startup studios have launched game-changing companies:
At Novelventures, we follow a similar model—blending innovation, execution, and long-term support to create high-growth, scalable businesses.
Startup studios run like well-oiled machines, moving through a consistent, repeatable process:
Ideas are generated internally, often based on industry trends, market gaps, or team insights. At Novelventures, we emphasize data-backed problem identification.
Ideas are vetted through rapid prototyping, user interviews, and MVP testing. Only the most promising move forward.
Once validated, the studio assembles a team—usually a founding CEO or operator—with design, development, and marketing support provided in-house.
With product-market fit established, the startup receives funding, growth strategy support, and help with hiring and operations.
The startup studio typically retains 25–60% equity in each venture, depending on how much of the early work it contributes. Founders receive a significant equity share and future investment opportunities.
Startup studios are not just idea labs—they’re businesses. Here’s how they generate revenue:
Studios like Novelventures don’t chase quick wins. Instead, they invest time, capital, and talent in ideas with long-term potential, aiming for sustainable exits over 5–10 years.
Atomic, one of the most prominent U.S. startup studios, has launched over 15 companies and raised hundreds of millions across its portfolio. Their success shows how tight control, shared resources, and full-cycle support can produce unicorns.
Like any business model, startup studios come with advantages and trade-offs.
If you’re an entrepreneur who thrives on execution and wants to co-build with a proven system and team, partnering with a studio like Novelventures might be the best move you make.
A startup studio builds companies in-house from scratch, while an incubator supports external startups with resources and mentorship.
Studios like Novelventures rely on data, market analysis, and team expertise to identify scalable, real-world problems worth solving.
Yes. Most studios provide initial capital, often pre-seed or seed-stage, to validate and grow the startups they create.
Reach out directly! Startup studios are often looking for entrepreneurial operators, engineers, designers, and marketers to help launch their next company.
Yes—when well-run. Studios like Atomic, eFounders, and Novelventures show that a disciplined, repeatable process can build lasting companies and deliver strong returns.
Startup studios are rewriting the rules of entrepreneurship. By systematizing innovation and de-risking early-stage company building, they create a powerful engine for scalable, investable businesses.
At Novelventures, we’re more than just a venture studio, we’re your co-founder, your growth team, and your launch partner.
Have an idea or want to work with us? Get in touch with Novelventures and let’s build something extraordinary.