Venture studios promise to "manufacture startups" at scale, offering a shortcut to high-performance growth. But according to Jeffrey Paine of Golden Gate Ventures, the reality is often far less glamorous, with many studios collapsing within 24 months.



In this episode, Jeffrey breaks down why he believes the venture studio model rarely delivers fund-level returns. He explains the dangers of "zombie companies," the misalignment of incentives between studios and founders, and why a non-standard equity structure can make future fundraising nearly impossible.



We discuss:


The difference between a venture studio and a traditional VC.


Why operational overload and a lack of discipline kill most studios.


The "incentive trap": why studios struggle to kill weak ideas.


How non-standard equity structures scare off future investors.


What high-performance studios do differently (specialisation & surgical focus).



For founders considering joining a studio and investors evaluating the model, this is a critical look at the economics and pitfalls of "manufacturing" startups.

Venture studios promise to "manufacture startups" at scale, offering a shortcut to high-performance growth. But according to Jeffrey Paine of Golden Gate Ventures, the reality is often far less glamorous, with many studios collapsing within 24 months.In this episode, Jeffrey breaks down why he believes the venture studio model rarely delivers fund-level returns. He explains the dangers of "zombie companies," the misalignment of incentives between studios and founders, and why a non-standard equity structure can make future fundraising nearly impossible.We discuss:<ul><li>The difference between a venture studio and a traditional VC.</li><li>Why operational overload and a lack of discipline kill most studios.</li><li>The "incentive trap": why studios struggle to kill weak ideas.</li><li>How non-standard equity structures scare off future investors.</li><li>What high-performance studios do differently (specialisation &amp; surgical focus).For founders considering joining a studio and investors evaluating the model, this is a critical look at the economics and pitfalls of "manufacturing" startups.</li></ul>

Helping you navigate the ever-changing universe of business, from headlines to the bottom line

Helping you navigate the ever-changing universe of business, from headlines to the bottom line

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