Category
- 🚗 The Invention Lab Story
Date of issue
Feb 6, 2026
Implications of the venture studio model for accelerators
And how to utilize existing traditional companies
The hottest buzzword in the Korean startup ecosystem right now is undoubtedly " venture studio " or "company builder." This concept isn't new; it's a new startup model that emerged in Silicon Valley in the early 1990s, pioneered by Bill Gross of IdeaLab. So why is it suddenly receiving renewed attention?
Is this particularly relevant to the accelerator industry, which specializes in nurturing and developing early-stage startups, which typically rely on small investments? And how will this concept be perceived from a change management strategy perspective by legacy companies that have leveraged open innovation methodology to find new businesses? Jinyoung Kim, CEO of The Invention Lab, who has been disseminating domestic open innovation methodologies to established companies since 2017 and has developed and implemented an investment-linked open innovation model, shares his thoughts.
If you are interested in the Corporate Venture Studio model, please feel free to contact us at any time!
CEO Jinyoung Kim | david@roailab.com
A New Systematic Approach to Innovative Startups: The Return of the Venture Studio
The Origin of Venture Studios: Bill Gross's 'Idealab'
The venture studio model originated in 1996 with Idealab, founded by Bill Gross in Silicon Valley. He viewed startups not as something left to chance, but as a "systematic, repeatable process." The characteristics of the new style of venture studio pursued by Idealab are as follows.
[Characteristic]
We simultaneously test numerous ideas internally, and focus resources and manpower only on items with proven marketability.
We simultaneously test numerous ideas internally, and focus resources and manpower only on items with proven marketability.
[Success Story]
He has launched over 150 companies, including GoTo.com, the world's first search advertising model, and CitySearch, an online city guide, and has achieved over 45 IPOs and M&As.
He has launched over 150 companies, including GoTo.com, the world's first search advertising model, and CitySearch, an online city guide, and has achieved over 45 IPOs and M&As.
Korean model: Fast Track Asia
In Korea, Fast Track Asia pioneered this model in the early 2010s. It established a startup as a holding company and oversaw the entire process, from selecting management to raising funds and exiting. This represents a high-risk, high-return structure, far exceeding typical equity investments. It was difficult to access without the capital (finance) and operational expertise (experience) of successful entrepreneurs.
In short, for accelerators, which have traditionally focused on nurturing early-stage startups through early-stage investments, particularly small-stake equity investments, it's been challenging to fully adopt company builder or venture studio models into the startup ecosystem. As with Fast Track Asia, successful startup founders must boldly pool a portion of their exit funds (in the form of a fund or capital contribution) as seed capital, and, based on this seed capital, must possess the capabilities to launch at least two or three new businesses within their startup. This model is inherently unapproachable.
Deregulation by 2025: The Turning Point Brought About by the Revision of the Venture Business Act
Accelerators (startup planners) have been strictly prohibited by law from establishing subsidiaries for the purpose of controlling management, limiting their ability to build companies. However, this restriction will be removed with the revision of the Venture Investment Promotion Act (Venture Promotion Act) in the first half of 2025. Now, the legal foundation has been established for accelerators to officially operate as venture studios and become active participants in "planned startups."
Why are venture studios on the rise now?
① Presenting a new revenue structure to address accelerators' "emptiness."
First, most existing accelerators' equity investments typically range from 100 million to 200 million won (based on TIPS). Even after five to seven years of growth, the low equity ratio leaves a clear limitation on actual cash-outs. In a typical round-based investment mechanism (early seed investment > Pre-A > Series A > B > C > Pre-IPO, etc.), as the company's value increases, the investment amount increases, while the initial seed investor's stake is diluted, leaving a meaningless stake), accelerators operating small funds experience a deepening sense of relative deprivation, which inevitably leads to frustration. Ultimately, in this investment ecosystem, those with more money tend to outperform those with less, leading to lower multiples but higher cash-outs. This leads early-stage accelerators to ask themselves this question:
"I did all the selection, nurturing, and seed investment, and if they had any concerns, I listened to them, helped them, and supported them.
Even after 5~7 years, this is all I can do...."
Even after 5~7 years, this is all I can do...."
Venture studios are, in a nutshell, a "planned startup." From the outset, they meticulously research and analyze potential products before selecting them. They then build a team of individuals best equipped to execute them. They hold a 30% or higher stake (effectively acting as co-founders and co-promoters). They rapidly launch and grow the venture, achieving a rapid strategic exit. Compared to traditional startup models, they can expect significantly higher returns.
Over the past decade, quality accelerators with a capital network and nurturing capabilities have become capable of launching so-called "planned startups" on their own. They also possess the expertise to select entrepreneurs or startup teams.
In other words, rather than pursuing the traditional startup growth model where the founding team grows while many different follow-up investment institutions add value, the Company Building model, where co-founders and co-promoters participate in business items that can be sold through small deal M&A at an appropriate corporate value (less than 5 to 10 billion won) within 3 to 5 years, can be a sweet temptation for these accelerators.
Division | Traditional Accelerator (AC) | Venture Studio (VS) |
Secured share ratio | Usually around 5% | 20~50% level |
Rate of return (IRR) | Approximately 5-10% (it is not uncommon for domestic funds to recover at an average IRR of 7% or less) | 53% or more (target) |
Payback period | 7 years or more (long and uncertain) | Strategic recovery possible from the early stages (3-5 years) |
TVPI personality | High multiple but low absolute amount | Achieving overwhelming recovery amount with high stake ratio |
Source: The Invention Lab
② Advances in AI technology and rapid declines in startup costs
Second, AI is becoming a powerful engine that enables venture studios to create "more companies" with "fewer resources."
As can be seen in the table below, traditional startups and AI-based planned startups are creating a situation where the speed and cost of startups are incomparable to those of the past.
[Table: Comparison of Traditional Startups vs. AI-Based Planning Startups]
Item | Legacy | AI-based planning and startup (Next Gen) |
Development personnel | A team of at least 3-5 people is required. | 1 developer + AI Agent/Copilot |
Infrastructure costs | High-cost cloud/server deployment | Low-cost structure centered on SaaS and AI APIs |
MVP production period | 3~6 months | Within 2 to 4 weeks |
Core Assets | Labor-intensive services | Advanced AI workflows and data |
Source: The Invention Lab
Now, with a single skilled developer able to create a global AI SaaS, venture studios can simultaneously run multiple businesses (parallel entrepreneurship) at a much lower cost than before.
For accelerators, this is a game changer. The combination of AI and cloud environments, coupled with their rapid development, has made it incredibly flexible and easier for them to connect with highly qualified entrepreneurs within their diverse startup networks, build business ideas together, and immediately launch a company as co-founders or co-founders.
So what about companies? : Strategic use of companies: Innovation through 'planned startups'
Meanwhile, the open innovation methodologies attempted by existing legacy companies have reached their limits. The limitations of the open innovation model, which has been sweeping Korea like wildfire since 2017, are now beginning to become apparent.
[Table: Limitations of Existing Open Innovation Models]
Method | Main activities | Maximum |
Outside-In | External startup competition and PoC | -Short-term collaboration -Events/contests end as mere events and lack sustainability -Frequent replacement/transfer of OI department heads - Absence of performance management and incentives (There are virtually no incentives for success for internal OI teams) |
Inside-Out | In-house venture development and spin-offs | -Internal politics -Lack of market sense - Due to the system of being able to return to work after failure, there is a lack of urgency and risk-taking ability compared to existing Real Startups. |
Source: The Invention Lab
The model that can fill this gap is ‘Venture Building.’
What is Venture Building?
A strategic startup model that commercializes unused IP, technology, and market infrastructure within large corporations, mid-sized companies, and listed companies by forming an optimal external startup team in a "pincer-like" manner with an accelerator.
A strategic startup model that commercializes unused IP, technology, and market infrastructure within large corporations, mid-sized companies, and listed companies by forming an optimal external startup team in a "pincer-like" manner with an accelerator.
What opportunities does this type of planned startup offer for existing legacy companies? We can look at it from three perspectives.
Three major opportunities for businesses
1.
IP Monetization: Rapidly commercialize technologies that have been dormant due to internal business unit priorities by transferring them to an external startup team (possibly a combination of internal personnel and external experts).
2.
Simple governance and speed: Professional ACs partner with TIPS and other R&D programs (funding a minimum of 800 million won) to directly nurture them. This allows for rapid commercialization without the complex intervention of follow-up investment institutions.
3.
Securing a solid new growth engine: Once market stability is confirmed after 2-3 years, large corporations can internalize the company through M&A or participate as lead investors to spearhead its entry into the global market.
To summarize, planned startups can be described as a "high-density execution model" designed to address the "loose coupling" and "internal politics" issues of existing models. It shifts from the unpredictable, multi-participatory, competitive process of team selection, incubation and training, and task force formation or spin-offs to a customized startup approach, enabling rapid market entry and growth.
Division | Traditional OI (Outside-In / Inside-Out) | Venture Building |
Key Concepts | Exploring external startups or spinning off internal ventures | Combination of internal IP + external experts + AC |
Staffing | Existing startup team or internal staff | Forming a team of 'tweezers' experts optimized for each item |
Governance structure | Dependence on complex stakeholders or internal organizations | Simple governance (AC and shared buildings) |
Funding | Need to attract own budget or external VC investment | Securing initial funding through R&D programs (TIPS, etc.) |
Driving force for success | Short-term PoC-focused, lack of urgency | Professional execution targeting IP monetization and M&A |
Recovery perspective | Low stakes, long-term uncertainty | Strategic recovery based on high stake (30% or more) |
Source: The Invention Lab
The crucial winning moves that traditional large and mid-sized companies can make when pursuing new businesses through venture studio model-type startups are as follows.
1) Strategic monetization of dormant IP
•
Risk Removal: Spin off technologies or patents that have been neglected due to low priority within internal business units and commercialize them.
•
Gain flexibility: By breaking free from the rigidity of internal organizations and leveraging the execution power of an external startup team, you can quickly validate your technology's market value. (You can even form a single team, combining internal experts with a thorough understanding of the technology and external experts with exceptional management skills.)
2) Maximizing capital efficiency (using TIPS and specialized AC)
•
Leverage Effect: By partnering with a professional accelerator (AC), you can secure government R&D funding, including TIPS, worth at least KRW 800 million, reducing the direct investment burden on companies.
•
Expertise Transfusion: With close management from an AC equipped with both nurturing and investment capabilities, you can expect a high level of business completion without internal personnel being immersed in new business.
3) Building a controllable M&A pipeline
•
Simple governance structure: Unlike typical startups where external VCs participate in large numbers and dilute stakes, the company and AC have control from the outset (set up with a 20% corporate, 10% AC, and 70% founding team structure).
•
Acquisition after verification: After 2-3 years of operation, when sales and popularity have been confirmed, internalization through M&A can be decided.
In short, while traditional OI is more like exploring restaurants created by others, planned startups are like hiring a professional chef based on a company's own recipe and establishing a franchise headquarters.
Implications
So far, we have briefly looked at the concept and birth of venture studios, the background and reasons why they were not developed in Korea and are only now emerging, the discovery and education of early-stage entrepreneurs/teams - why venture studios can be a new business model for accelerators with investment capabilities, and how existing legacy companies can utilize venture studios (start-up startups) from a planning and entrepreneurship perspective to pursue a change management strategy different from the existing open innovation model.
The rise of the venture studio model isn't simply a shift in investment methods. It represents the "industrialization of startups," a highly strategic innovation model that combines capital, technology, and operational capabilities.
For the accelerator
It will be a new business model that can overcome low profitability and lead the entire investment cycle.
It will be a new business model that can overcome low profitability and lead the entire investment cycle.
For legacy companies
Beyond high-failure in-house ventures and loose collaborations, it will become the most dense innovation tool for transforming a company's core assets into market value.
Beyond high-failure in-house ventures and loose collaborations, it will become the most dense innovation tool for transforming a company's core assets into market value.
Now, with the powerful tools of AI and the winds of deregulation, those who proactively adopt the venture studio model will become the next generation of "unicorn factories."
Next Episode Preview: [Series ②] Core Operational Processes of Venture Studios: A Practical Guide from Idea Generation to Team Building
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