RnDAO Talks Ep 42 | Denis Kovalevich

In Episode 42 of RnDAO Talks, we hosted Denis Kovalevich, a pioneer in venture studios and co-founder of TechnoSpark, one of the first hardware venture studios. With over 20 years of experience in innovation, technology, and startup creation, Denis shared insights on how venture studios are shaping the startup ecosystem and emerging as a distinct asset class.

Watch this talk on YouTube or listen to the podcast on your favorite app.

Venture Studios: A Different Approach to Startup Creation

Traditional venture capital relies on selecting a few promising startups from a large pool of founders. In contrast, venture studios take a systematic approach to startup creation, building multiple companies in parallel with a focus on repeatable processes and sustainable growth. TechnoSpark, for example, has launched over 700 startups with a 50% survival rate.

Why Venture Studios Are Gaining Traction

Denis highlighted several reasons venture studios are growing:

• Lower Risk, Higher Success Rates: By focusing on structured ideation, market research, and operational support, venture studios increase the likelihood of startup success.
• Faster Time to Market: Startups developed within studios typically reach Series A funding twice as fast as traditional startups.
• More Exits, Not Just Bigger Exits: Unlike traditional VC models that focus on high-valuation exits, venture studios optimize for a higher number of successful exits, even at moderate valuations.
• Evergreen Investment Model: Unlike venture funds with fixed timelines, venture studios operate on an ongoing basis, allowing for long-term growth.

Challenges and Considerations

Denis also addressed some common challenges:

• Defining What Constitutes a Venture Studio: Many service providers label themselves as studios, but true venture studios engage in market research, ideation, and company building.
• Equity Distribution: While studios retain significant equity in startups, they must balance this with attracting and incentivizing strong co-founders.
• Scaling and Standardization: As the model grows, there is a need for industry standards and best practices, a focus of the newly formed Venture Studio Forum.

The Future of Venture Studios

With over 1,000 venture studios globally and more emerging, Denis expects the model to expand significantly. He believes venture studios will continue to refine their approach, integrating investment and entrepreneurship while maintaining adaptability to market shifts.

‍

RnDAO Talks will continue exploring the evolving landscape of startup creation. Stay tuned for more discussions on innovation, venture building, and investment strategies.