In a rapidly changing business landscape, innovation has become a critical priority for companies, with start-ups outpacing traditional corporations in speed and agility to innovate. Despite their potential, these start-ups often face high failure rates and struggle to cross the
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In a rapidly changing business landscape, innovation has become a critical priority for companies, with start-ups outpacing traditional corporations in speed and agility to innovate. Despite their potential, these start-ups often face high failure rates and struggle to cross the “valley of death” due to gaps in resources and commercialization expertise. To address these challenges, new venture building models such as the venture studio and venture clienting model have emerged, aiming to systematically de-risk new ventures and support them in successfully commercializing their innovations. This thesis explored these models, seeking to bridge the gap between practical applications and academic research, with the goal of developing a new model that enhances start-up success by reducing failure risks, improving time-to-value, and optimizing cost and performance. This graduation project for Business Models Inc. explored different venture building models to identify and design the most optimal model for BMI to introduce into their portfolio of service offerings. Utilizing the Double Diamond methodology (Design Council, 2005), the project began with a research phase involving a literature review and expert interviews, focusing on venture building, corporate venturing, and factors influencing start-up success and failure. This phase led to the identification of the start-up studio model as highly beneficial for BMI, due to its potential for high financial value and control over start-ups’ strategic direction. Insights from the research highlighted three critical pillars for building strong ventures: the Human factor, the Resource factor, and the Opportunity factor. Interviews revealed three key stakeholder archetypes that are relevant for designing a new venture building model for BMI: the Driving Force, the Investor, and the Supporter. The second phase of the project, the design phase, transformed these insights into a tangible value proposition named “the Studio”. This startup studio model for BMI is designed to scout technologies, ideate and validate radical venture ideas, assemble the ideal founding teams, and provide ongoing support to ensure growth. It aims to mitigate risks associated with the three identified pillars by involving a diverse mix of individuals in the founding teams, offering initial investment, and support with studio services. The outcome includes a pitch deck to communicate the studio model’s benefits to stakeholders, a minimum viable organization structure with necessary roles and capabilities, financial forecasts, and a roadmap for implementing the studio model at BMI.