What is a startup studio?
Funding and set-up costs are major pain points of almost every entrepreneur in the region. Startup studios, also known as a venture builder, is a new model that is being built to reduce the cost and risk of building startups.
Enhance is one such startup studio in the middle east. It has released its white paper, “Startup Studios – Innovating Innovation,” talking about how this model could become the new norm.
Only 0.1% of startups and 10% of venture capital funds provide venture returns. We at Enhance believe that there is a better model to build startups especially in fragmented markets such as the Middle East. We believe the startup studio model is a new norm that increases the chance of success for startups through sharing of expertise and resources.Alper Celen, Founder at Enhance
Startup studios are based on the principle of sharing know-how and resources across multiple ventures to increase their viability. As such, they share resources such as marketing know-how, databases, technology, funding, and talent.
Considering entrepreneurship in the startup scene has become very popular, and competition is heating up, founding startups could become the new normal. However, with competition, risks increase. And any model that provides a safety net, will become popular.
The concept is already gaining traction in the US and Europe, with 178 startup studios currently operating around the world. It seems the trend will soon catch up in the Middle East.
Learn more about this new norm here.