A venture studio cofounds companies with expert operators inside from the first week, rather than funding companies that already exist. The liquidity complaint LPs have with traditional VC is real, and the problem underneath it is that a check buys information after the decisions are made.
We put a line on our one-pager this year that I keep coming back to. Most first-time founders with deep industry expertise get one of two things from the venture world: a check and a pat on the back, or advice from people who've never operated.
I wrote it for founders. The longer I sit with it, the more I think it describes the LP's problem too.
The complaint I hear about early-stage venture is liquidity. Funds raised a decade ago that have returned little, and a whole generation of LPs who've learned to treat a 10-year lockup as the price of admission. I think the complaint underneath it is about influence. A seed check buys you a seat at a quarterly update, which means you get information after the decisions are made. When a company you're in starts drifting, the model hands you a board deck and a hope.
Venture as most of us know it prices the picking. Write the check and wait. The picking matters, and it's also the part of the job with the least control over the outcome, and we've built an entire asset class around it.
A venture studio cofounds. The operators are inside the company from before there's a company.
When ForwardShare cobuilds a venture, we sit in the build with the founder the way a cofounder would, from the idea through the first real traction. Operators who've built and scaled companies are on the team from the start. We back three to five founders a year, not a hundred, and every month we make the call together: double down, pivot, or stop. That monthly call is the thing a check can't buy. It's how we stay efficient with money and honest about what's working, and it's the reason the studio model lets us de-risk a bet instead of spraying and praying.
Industry-published data says this shows up in outcomes. The Global Startup Studio Network's own report puts studio-backed companies at Series A in roughly 25 months, against something like 56 for the typical startup. Those are the studios' numbers about themselves, so read them the way you'd read any trade association's report. The direction matches what I see on the ground, though. Companies with operators in the building move faster because the mistakes that cost a first-time founder a year get skipped.
Our thesis is what we call seedstrapped. Enough capital to get to revenue, structured so the company can't outrun its own proof. Roughly 70% of startups that fail do it by scaling too soon, and a seedstrapped company is built so that it can't.
For an LP, this changes what you own. You hold positions in companies built to be default alive, where the exit doesn't have to be a billion dollars to matter. A studio can win on a $30M or $40M outcome because the ownership is real and the capital in was small. The traditional fund needs the unicorn, and we don't.
It also changes when money comes back. Capital efficiency creates more than one path to liquidity, and we design for those paths on purpose rather than treating a decade-long lockup as a law of nature. We're early on the capital side, and I'd rather say that plainly than dress it up. The proof gets built one venture at a time, in the open.
Ask who's actually in the company between board meetings, and ask when, specifically, money comes back.
If a manager can't answer both in plain language, the picking was never the hard part.