Magnitt Venture Studio
VENTURE STUDIOS OFFER A HYBRID SOLUTION BETWEEN START UP INCUBATORS AND VENTURE CAPITAL
- An estimated 90% of startups fail, 10% fail in the first year
- The number one reason why businesses fail is due to the fact that there’s no market need.
- Venture studios challenge the premise that failure is the default by substantially increasing the odds of startup success.
- Start ups that launch from studios experience 30% higher company success rates.
- Venture studios continue to prove their success, with 84% of studio startups going on to raise a seed round.
- On average, studio startups go from day zero to seed round in 10.7 months, and seed round to series A in 14.5 months vs ~18 months for VC.
- Of those startups that make it to the seed round, 72% of those ventures make it to Series A.
- Compare this figure with traditional startups where only 42% of ventures that get to seed make it to Series A.
- The industry average for a traditional investment to exit is about 6.6 years, while startups created in studios showed that the average age of a company at exit was 3.85 years.
Magnitt Venture Capital
SUPPORTING START UP FOUNDERS, WITH BOTH CAPITAL AND EXPERTISE, TO ENSURE BUSINESS OPERATIONS AND FUNDING MILESTONES ARE MET – MINIMIZING RISKS AND DELIVERING VALUE FOR INVESTORS
BUSINESS MODEL STEPS
Magnitt Venture Studio
realizes value for Capital Partners by lower the risk of failure and increasing the return on investment in its ventures
