Free the best entrepreneurs in the world to continue to invent

Thomas Edison was not only known for his startup, the Edison Company. He was known as an inventor – and prolific in addition. He has contributed to innovations, including the phonograph, electric light bulb, motion picture camera and so on. By generating ideas and inventions that have a profound and lasting impact on the world, Edison has become synonymous with invention. How to free the best entrepreneurs in the world to continue inventing today?

Silicon Valley does not produce new "Edisons" to continue to invent.

Nowadays, Silicon Valley has become synonymous with the concept of invention, even to satire. But Silicon Valley does not produce new Edisons. The fundamental model behind Silicon Valley's innovation goes against what is needed to encourage and empower the greatest inventive minds among us.

According to the traditional model of venture capital, Silicon Valley entrepreneurs can rarely be content with more than one invention, as each company represents a 7 to 10 year journey from start to finish. Given the low chances of success and the high stress this implies, entrepreneurs often hang up after one or two outings.

Most enter the world of venture capital itself – a form of high-end retirement that allows you to participate in the action of invention, without the stress of operating companies. It's an accepted model, but it's also a waste of unique creative potential.

Fortunately, a new path is emerging by helping entrepreneurs to invent and grow their businesses faster.

The best entrepreneurs can grow their business faster and adapt to more businesses. These studios are known as corporate studios or startups and are highly successful in today's market.

Silicon Valley does not produce new Edisons to continue to invent.
Silicon Valley does not produce new Edisons to continue to invent.

Startups that create startups

Over the past year, venture capital studios have experienced an impressive influx of funds, marking the beginning of a radical change in the design and growth of new businesses. At the end of last year, for example, the startup studio Atomic closed with the second fund of 150 million dollars. Then, this spring alone, Madrona Venture Labs announced new funding of more than $ 11 million.

The Risk Studio Model is designed to attract and nurture novice and experienced entrepreneurs.

The development studio provides more than just capital, advice and presentations to entrepreneurs; it provides practical help. This is why we will see this model become more popular over time. Where traditional venture capital funds provide capital and adapt their bets through several start-up companies that fit into a set of pre-established parameters.

Venture Studios generates in-house startup ideas and works with a well-established team of entrepreneurs to develop concepts within their own walls. According to this model, experienced entrepreneurs can become more prolific inventors because the risk creation studio associates them with talented entrepreneurs and operators for the first time to create the companies themselves.

The business creation studio mitigates the typical disadvantage of tying a contractor to a single company for a decade or more.

Overall, the risk studio model is advantageous for many. The existing venture capital model is inherently risky and requires novice entrepreneurs to become CEOs and novice operators. In this necessary transition from inventor to operator, many VC-based startups fail or are not up to their potential.

In contrast, the venture studio model solves the problem of inexperience by putting more hands on the bridge (and experienced hands) around a good idea. In this way, not only do they reduce risk, they relieve the best entrepreneurs and allow them to adapt to many inventions.

Place better bets to free the best entrepreneurs to continue to invent.

The sustainability of the venture studio model will be proven by its alignment with the very nature of entrepreneurship. Overall, investment studios are driving innovation in the right direction, freeing the best inventors to do what they do best: invent. This is important because today, there is more money than excellent entrepreneurs in the investment. Companies that follow the capital will probably evolve faster than the number of quality founders.

The investment studio is likely to be more sustainable than the current venture capital model, with talent becoming scarcer than capital.

The investment studio model – which does not accept 10 investments lost to get a single winner. The investment studio is likely to be more sustainable than the current venture capital model, with talent becoming scarcer than capital. Betting and supporting many of the best entrepreneurs' ideas is a more effective way of deploying capital. In the end, this leads to better returns, better companies and more invention.

Less satire, more Edison.

Justin Choi

Justin Choi

Justin Choi is a serial entrepreneur who has founded and sold successful businesses in a variety of industries, including mobile games, advertising and media, as well as application development. He holds numerous patents and advises organizations, from start-ups to large companies, in terms of innovation and technology. Justin is currently responsible for product strategy at Cie Digital Labs and the CEO of Nativo.