What Is A Start-Up Studio & How It Works

A start-up studio is also known as a start-up foundry or start-up factory. It is where an organisation builds companies in succession. It is like a start-up company that builds other start-up companies. They use pooled resources such as expertise, financial capital, management processes, strategies and other technical tools that help establish the business. 

There are generally 5 steps as to how start-up studios work. 

  1. Ideation.  2. Validation.  3. Creation.  4. Spinning Out.  5. Scaling Up.


Ideation is the initial stage where they will brainstorm and ideate to come up with business ideas regarding the concerning subject at hand. It is the first stage where the initial idea is discussed regarding the subject and is further evaluated to create a business idea to put in place.


This stage discusses the feasibility of the idea and whether or not it is doable. This involves evaluating the scalability and doing thorough market research to understand the options and available paths to take. Many businesses have their own internal screening mechanisms that they will use to test the idea before deciding on anything. Once the idea passes the test, they would move on to the stage of actual planning. If the idea doesn’t pass the test, then it would have to be re-evaluated and other viable options would have to be considered.


Creation is the stage where the idea is converted into a working business plan. They will develop prototypes and designs that will be put into the final product. This is a lengthy process since designing and making the actual product is quite a task and has to take into consideration quite a few things concerning quality, quantity, costs etc. At this stage, they would also look for feedback from the prototypes to determine what changes would still be required and what works seamlessly. This stage involves a lot of development and improving the product as necessary. 

Spinning Out.

After completion of the creation stage, they move on to the production of the actual product. They begin to spin out and work either with their own executives and teams or with an externally hired team. They begin to launch ideas etc and move on to other aspects before putting out the final product.

Scaling Up.

The final stage is scaling up where the ideas and plans are completely drawn out. The business plans and strategy are finalised and put forward. The business then raises funds to begin and at this point, they are ready to begin all the work on their own.