The Rise of Venture Studio Funds in Emerging VC

Emerging venture capital is evolving, and one of the most evident shifts in recent years has been the rapid surge of venture studio funds. These funds combine capital with company-building infrastructure and help to launch startups from the ground up. The model offers a compelling alternative to traditional VC by aligning capital deployment with hands-on operational support.

While historically a small part of the ecosystem, venture studio funds are growing fast—rising from 6% of emerging funds in 2024 to 13% in 2025. With leaner target sizes and strong early fundraising performance, they are carving out a strategic niche among emerging managers.

This analysis draws on data from 600 emerging VC funds that completed the VC Lab accelerator by Decile Group, highlighting venture studio fund structures, leadership profiles, sector focus, and early-stage fundraising outcomes.

Read the full research article here: https://govclab.com/2025/08/25/the-surge-of-venture-studio-funds-in-emerging-vc/

What Are Venture Studio Funds?

Venture studio funds operate differently from traditional VC funds. Instead of investing in external startups, they are attached to studios that build companies in-house. This includes developing ideas, assembling teams, and providing operational support from day one.

This model allows GPs to exert more control over execution, founder selection, and product development while reducing early-stage risk. Studio funds benefit from predictable deal flow and a clear fund thesis, making them attractive to LPs. However, operational intensity and potential conflicts between fund economics and studio ownership require strong internal execution.

Growth and Momentum

Venture studio funds are still a minority, but proportional growth among emerging funds is rapid:

• 2022: 3%

• 2023: 4%

• 2024: 6%

• 2025: 13%

Accelerator funds have remained at 5–7% over the past years, and traditional funds still dominate at 76% in 2025, but the rising adoption of studios shows increasing interest from GPs and founders seeking to pair capital with hands-on company-building.

Leadership and GP Profiles

Teams vs. Solo GPs: 53% of venture studio funds are led by solo GPs, 47% by teams. This balance reflects flexibility in leadership while benefiting from operational depth.

Gender Diversity: Leadership is overwhelmingly male: 86% all-male teams, 11% mixed-gender, 3% all-female.

Age: 40% of GPs are 40–50 years old, with 30% under 40 and 30% over 50.

Sector Focus, Fund Sizes, and Early Fundraising

Sector Specialization: 65% of venture studio funds focus on a single sector, prioritizing AI (28%), software (16%), B2B (13%), deeptech (9%), and impact (9%).

Lean Fund Targets: Venture studio fund sizes average at $6.4MM compared to $7.7MM for accelerator funds and $10.6MM for traditional funds. Smaller, focused targets support intentional capital deployment and higher LP confidence.

Early Fundraising Performance: In the first 6–12 months, studio funds on average report:

• $2.8MM in PACTs (soft commitments) versus $2.2MM for traditional and $0.9MM for accelerator funds

• 50% of target raised in PACTs compared to 31% for traditional and 16% for accelerator funds

This strong early traction suggests growing investor confidence in the studio model. GPs benefit from clear strategies and structured operating models, while LPs are more likely to commit early when they trust the teams building the startups internally.

Key Takeaways for Emerging GPs

1. Consider the Studio Model: Combines capital efficiency with operational control, ideal for focused early-stage investing.

2. Set Realistic Targets: Smaller funds can reach larger portions of their target early, boosting LP confidence.

3. Leverage Early Traction: Strong early fundraising demonstrates execution credibility to investors.

4. Flexible Leadership Structures: Solo GPs and teams alike can succeed, offering adaptable frameworks for venture studio fund management.

5. Prioritize Diversity: With 86% male-led, increasing representation could foster more inclusive innovation.

Venture studio funds remain a growing, high-impact path for emerging managers. With operational control, lean capital strategies, and clear LP alignment, this model is reshaping how the next generation of VC funds is launched and managed.