The classic startup has been working according to the same old formula for many years: someone notices a problem, comes up with an idea how to solve it, gets the funding, and tries to scale. However, despite being quite successful for a number of startups, this model also entails a lot of failure.
In most cases, startups do not fail due to bad execution, but rather due to the fact that they spend too much time and effort building the product without confirming the market demand for it first.
Due to the fast development of technologies, a new formula of startups has started to gain popularity – venture studio.
Instead of waiting for a team to come up with an idea and execute it, venture studios look for opportunities, confirm their market demand, put together the necessary team, and build startups.
Aperture Venture Studio (https://apertureventurestudio.com/) combines the above mentioned principles with a focus on AI, IoT, and industrial innovation.
Starting with Technology and Not a Problem
There are several ways to ruin a startup, and one of the most popular ones is to start working on a product by looking at technology rather than the problem you need to solve.
New technologies appear, people get excited, and entrepreneurs try to develop products based on those technologies. It happens that sometimes it turns into groundbreaking discoveries, but more often than not, it becomes the solution without the problem.
Nowadays, the field of AI is a great example of that – thousands of startups are developing products based on similar technologies and algorithms. And although technology looks impressive, there is no guarantee of the success unless the problems solved by the company are valuable for customers.
This is the main reason why venture studios prefer market validation over product development.
It is not the question "What can we create?"
It is the question "What should be solved?"
Opportunities Where They Are Greatest
There are many industries today that continue to function with inefficiencies even after years of technological advancements.
There are industries like manufacturing, logistics, warehousing, infrastructure, healthcare, and supply chain management that produce huge amounts of data but fail to derive actionable insights from them.
Some of these areas include:
- Asset tracking and visibility
- Predictive maintenance
- Worker safety
- Inventory optimization
- Operations analytics
- Industrial automation
These problems faced by the actual industry make it an exciting area of opportunity.
Instead of just focusing on digital experiences, new ventures today are increasingly focused on integrating software with operations.
The Potential of AI and IoT
AI and the Internet of Things are changing the way companies look at themselves and run their business operations.
The information collected by the connected devices is constantly analyzed by artificial intelligence solutions and used to recognize trends, make predictions, and automate decisions.
Such potential makes the company much more proactive than reactive.
Businesses no longer wait until the machine breaks down but predict when maintenance is needed; no longer manually follow up assets, they control the movements in real-time; no longer use past reports, they have live intelligence on operations.
Why Venture Studios Are Important
Creating successful technology firms entails much more than just good ideas.
It includes knowledge of the market, validation, execution, recruitment, and strategic planning.
Venture studios offer an organizational model for tackling all these issues.
Through blending entrepreneurial acumen with new technologies, venture studios can foster innovation at lower risks of the uncertainties that come with startups.
Such an approach is especially useful in industries that are increasingly embracing technology without solving the issues of implementation.
Looking Ahead
The future of innovation won’t be all about the companies with the latest technology.
It will be about companies who are able to find relevant problems and build solutions that make a difference.
Artificial intelligence, Internet of Things, and operational intelligence will continue to transform industries, but the effectiveness of application of these tools will decide the winner.
Aperture Venture Studio believes that the next wave of disruptive businesses will come out of the combination of all these elements.
More details on the venture building at Aperture Venture Studio you can learn at https://apertureventurestudio.com/.
The future is not only about technology development. It’s about companies solving problems worth solving.
