Pierrick Bouffaron, Operating Partner for Entropia Capital, a global investor in technology with offices in Hong Kong, Luxembourg and NYC.
Unlike digital ventures, which can iterate and pivot quickly, deep-tech startups face long R&D cycles, capital-intensive prototyping, regulatory complexity and fragmented value chains. The road to commercialization is filled with hurdles that demand strategic execution and privileged access to industry networks.
Traditional venture capital has struggled with deep tech because of its long time horizons and high risk-to-reward ratio. Many investors still hesitate to back projects that require a decade of development before seeing meaningful revenue. Meanwhile, solo founders often lack the infrastructure and strategic connections needed to scale their innovations beyond the lab.
The Startup Studio Model
This is where startup studios provide a solution. By building companies from the ground up, startup studios reduce risk, accelerate execution and optimize the startup journey through structured venture creation, pre-established networks and hands-on support. This model has already proven its efficiency in sectors like biotech and advanced manufacturing.
A growing number of deep-tech hubs are recognizing the value of startup studios. In Southeast Asia, for example, deep-tech investment has grown, yet many startups continue to struggle with cross-border expansion and industrial integration. By aligning corporate resources, academic research and venture-building expertise, startup studios offer a structured solution to bridge gaps and help technologies reach commercialization faster.
Privileged Access
The defining characteristic of successful startup studios is privileged access—unique resources, networks and opportunities that are difficult for traditional startups to obtain. In deep tech, this can shorten development timelines and reduce inefficiencies.
Another significant advantage studios offer is early access to industrial and technology partnerships. The path to commercialization in deep tech requires collaboration with tier 1 players in manufacturing, supply chains and regulatory bodies. Without these connections, startups face bottlenecks in prototyping, production scaling and certification processes. Studios pre-negotiate industry partnerships, ensuring portfolio companies can integrate into existing value chains.
Another crucial dimension of privileged access is capital efficiency and early-stage funding acceleration. Many deep-tech startups face the challenge of securing long-term capital while still in the pre-revenue phase.
Studios solve this by injecting their capital early on and streamlining the fundraising process through pre-vetted investor networks and strategic co-investors. This model enables startups to spend more time on execution and less on securing funding rounds. The ability to offer early access to corporate buyers, government-backed financing and alternative funding sources also ensures studios can provide capital beyond traditional VC constraints.
The Venture Studio Playbook
Studios engineer ventures through an adaptive, portfolio-driven strategy. One critical advantage of the model is the ability to kill ideas early and repurpose assets. In a traditional VC-backed startup, failure often means complete shutdown, but studios own a majority stake in their portfolio companies and can quickly pivot underperforming teams into new projects. This increases capital efficiency. The biotech firm Recursion Pharmaceuticals, for example, pivoted multiple times before refining its AI-driven drug discovery model, ultimately securing major partnerships.
Cross-border expansion is another area where startup studios shine. In deep tech, scaling internationally is often a necessity due to fragmented regulatory landscapes and supply chain dependencies. Many investors view international expansion too early as a risk, but in reality, I’ve found deep-tech startups must establish a global footprint from day one. Studios mitigate the risks of premature expansion by pre-building strategic entry points in key markets.
Studios also redefine the founder-equity model. While traditional startups allocate large equity shares to individual founders early on, studios operate differently. Typically, they retain 30% to 60% ownership in their portfolio companies, with founder equity structured to align incentives over time. This ensures that startups remain capital-efficient while attracting talent through salary security, access to pre-built operational teams and lower personal financial risk for entrepreneurs.
Challenges Of The Startup Studio Model
While startup studios offer a highly structured approach, there are challenges. One drawback is the high capital intensity required to sustain R&D cycles. Deep-tech ventures often require years of investment before commercialization. This puts financial strain on studios, especially if they rely on short-term capital structures. To address this, studios can diversify their funding sources, leveraging hybrid financing models that include government grants, corporate partnerships and patient capital from specialized investors.
Another challenge is talent alignment and founder autonomy. Since studios retain a significant equity stake, some experienced entrepreneurs may feel constrained by reduced ownership and decision making power. To attract top talent, studios can offer structured incentives, including long-term equity vesting, milestone-based bonuses and the ability to co-lead spin-offs. Aligning incentives through phased equity distribution ensures both founders and the studio remain committed to the venture’s success.
Finally, scaling across regulatory barriers remains a key difficulty in deep tech. Different regions have varying approval timelines, compliance requirements and infrastructure readiness. A solution here is for studios to pre-build regulatory playbooks and partnerships with policymakers, ensuring they can anticipate compliance hurdles and accelerate approval processes in multiple jurisdictions.
What’s Next For Startup Studios?
As governments and investors seek more effective ways to accelerate deep-tech commercialization, studios are likely to play a larger role in shaping innovation ecosystems.
One emerging trend is the rise of corporate-backed startup studios, which integrate existing industrial ecosystems to de-risk venture building. Corporate venture studios allow large industrial players to test and spin out new deep-tech solutions while leveraging their infrastructure, supply chains and customer networks.
Another trend is the evolution of hybrid funding models. Traditional VC structures are often ill-suited for deep tech, but startup studios are pioneering alternative financing approaches, combining venture capital with government-backed grants, sovereign wealth funds and industry co-investments. These hybrid models provide deeper capital reserves and allow for longer development cycles without excessive dilution.
Finally, the talent equation is changing. Many serial entrepreneurs who previously built companies from scratch are now choosing startup studios over solo ventures. Studios provide a compelling value proposition—offering founders a pre-assembled team, operational infrastructure and financial stability from day one. This shift is already evident in North America and Europe, where some entrepreneurs are now building through studios rather than traditional VC-backed pathways.
As the deep-tech revolution unfolds, startup studios are an efficient and structured way to build companies. For founders, investors and policymakers alike, I think the question is no longer if startup studios work—but how to leverage them for maximum impact.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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