Venture Studio Resources
What are Venture Studios?
A venture studio is a powerhouse for building startups. Unlike traditional investors who back external ideas, venture studios take a hands-on approach. They create, fund, and launch companies from the ground up, combining internal ideas with seasoned leadership and a shared infrastructure to bring concepts to life.
This model reduces risks and increases the chances of success by offering founders access to resources, proven processes, and a team of experts focused on execution. Venture studios don’t just invest—they co-create. While some question if this structured environment limits the raw creativity of independent startups, the results speak for themselves: an efficient, focused path to scalable, impactful businesses.
Resources:
- Startup Studio Research – https://inniches.com/startup-studios-research
- HBR – Entrepreneurs, Is a Venture Studio Right for You?
- MIT Thesis – Venture Studios: Analyzing a New Asset in the Venture Ecosystem
"Boring" Venture Studio Manifesto
-
High Target Returns: Target 3-3-3 profile generates annual return of 44.2%, “Boring” Venture Studios aim to deliver superior, consistent gains.
- Lower Risk Profile: A standard deviation of 25% reflects reduced volatility, attributed to operating in predictable markets with established demand.
- Accelerated Time Horizon: Achieving the $9 million target in just 3 years demonstrates start-up efficiency.
- Outstanding Risk-Adjusted Returns: A Sharpe Ratio of 1.69 significantly surpasses other asset classes, indicating exceptional returns per unit of risk.
| Asset Class | Target Annual Return | Standard Deviation | Capital Required | Time Horizon | Target Returns | Sharpe Ratio |
|---|---|---|---|---|---|---|
| Equities | 8% | 15% | $3 million | 14.3 years | $9 million | 0.40 |
| Private Equity | 17.5% | 25% | $3 million | 6.8 years | $9 million | 0.62 |
| Venture Capital | 25% | 100% | $3 million | 4.9 years | $9 million | 0.23 |
| Search Funds | 32.5% | 40% | $3 million | 3.9 years | $9 million | 0.76 |
| Traditional Venture Studios | 30% | 40% | $3 million | 5 years | $9 million | 0.70 |
| “Boring” Venture Studios | 44.2% | 25% | $3 million | 3 years | $9 million |
1.69
|
On Creativity
Destruction and Creation - by John Boyd
Full text of Boyd’s 1976 bombshell on the process of creativity here. The full text is a dense read, a summary is below.
Destruction and Creation: A Love Letter to Chaos
Survival requires breaking what you love to build something that works. Welcome to the endless cycle of destruction and creation, where chaos is your best friend, and entropy is always watching.
John R. Boyd wasn’t just some Air Force thinker with time on his hands. He was the kind of guy who looked at the universe and saw a giant battlefield of ideas. His essay Destruction and Creation explores how humans survive—and thrive—in a world that refuses to sit still. The answer, Boyd argues, is both painful and exhilarating: we destroy the ideas that no longer serve us and build new ones from the rubble. It’s messy. It’s relentless. It’s also the only way forward.
This essay isn’t about stability or peace. It’s about learning to love the chaos, to see destruction as a form of creation, and to embrace the glorious absurdity of a universe that demands we adapt or perish.
The Goal: Survive, But Do It on Your Own Terms
Let’s start with survival. Not the “huddled in a cave gnawing on roots” kind of survival, but the good kind—the kind where you get to live life on your terms, free from meddling forces that want to shove you into a box. Boyd believed this drive for independence was the engine behind human behavior.
But here’s the twist: no one does it alone. We form groups—nations, corporations, unions, even chess clubs—because the world is full of sharp rocks, and we need friends to help us lift the big ones. These groups are pragmatic, not romantic. They exist to pool skills and overcome obstacles. But when they stop being useful, when they start holding people back, those people leave. They break away, find a better tribe, or go rogue.
Boyd’s point is simple: the need for independence drives everything. It’s why we form alliances and why we abandon them when they stop working. Nothing—no system, no group, no idea—lasts forever.
The Problem: Reality Won’t Sit Still
Here’s where it gets tricky. To act in the world, we build mental models—maps, if you will. These maps are how we make sense of reality. But reality doesn’t care about your map. Rivers dry up. Forests turn to parking lots. Your favorite diner becomes a vape shop. The terrain shifts, and suddenly, your map is useless.
Boyd describes this mismatch as the central challenge of survival. Our mental models are never perfect because reality keeps changing. The only solution is to destroy the old map and make a new one. And then another. And another. This isn’t a one-time deal; it’s a lifelong process. It’s how we adapt to a world that refuses to sit still.
The Method: Smash, Stir, Rebuild
Boyd calls this process Destruction and Creation. It’s not as violent as it sounds—okay, maybe it is. First, you take your old ideas and smash them into tiny pieces. This stage, which Boyd calls “destructive deduction,” is unsettling but necessary. You can’t build something new without clearing away the debris of the old.
Now comes the fun part: you sift through the rubble, looking for patterns. You take the bits and pieces of shattered ideas and connect them in new ways. This is “creative induction,” where chaos becomes opportunity. If you’ve ever dumped a box of Legos on the floor and built something amazing from the mess, you’ve got the idea.
But don’t get too comfortable. The terrain will shift again, and your shiny new model will break. And the process will start all over. This endless loop of destruction and creation is how we survive.
The Cosmic Joke: Gödel, Heisenberg, and Thermodynamics
Boyd isn’t content to keep things simple. He brings in three intellectual heavyweights—Kurt Gödel, Werner Heisenberg, and the Second Law of Thermodynamics—to hammer home the point that perfection is a fool’s errand.
- Gödel’s Incompleteness Theorem: No system can explain itself. There’s always something outside the system that doesn’t fit. Translation: your mental models will always have blind spots.
- Heisenberg’s Uncertainty Principle: The act of observing changes what you observe. Translation: the closer you look, the blurrier things get.
- Entropy (Thermodynamics): Everything falls apart eventually. Leave a system to itself, and it’ll decay into chaos. Translation: stability is temporary.
Taken together, these ideas paint a bleak but liberating picture. You’ll never perfectly understand reality, and that’s okay. The point isn’t perfection—it’s adaptability.
The Dialectic Engine: Chaos as Fuel
Boyd describes the destruction-creation cycle as a “dialectic engine” that powers human progress. When old ideas crumble, the resulting chaos creates opportunities for innovation. By embracing this process, we develop new systems that help us act more effectively in a shifting world.
But here’s the catch: this engine isn’t self-sustaining. If we focus too much on perfecting our current model, we get stuck. Boyd calls this “entropy’s revenge.” The solution? Step outside. Gather new perspectives. Smash the old system and build something better.
This isn’t just a personal process—it’s a societal one. History is full of civilizations that refused to adapt, clinging to brittle ideas until entropy devoured them. The lesson is clear: adapt or die.
The Implications: Build, Destroy, Repeat
The implications of Boyd’s ideas are as unsettling as they are inspiring. Nothing is static. Not your ideas, not your institutions, not your favorite pair of jeans. But in this constant cycle of destruction and creation lies a profound hope: the chance to grow, to innovate, to build something better.
Boyd’s dialectic engine isn’t just a tool for survival—it’s a blueprint for progress. The chaos is scary, sure, but it’s also beautiful. It’s where all the best ideas are born.
The Closing Note: So It Goes
Here’s the deal, folks: chaos isn’t the enemy. It’s the spark. Boyd’s essay is a hymn to humanity’s ability to adapt, to tear down and rebuild, to find meaning in a world that refuses to sit still.
So go ahead. Smash your mental maps. Build new ones. When they fail—and they will—smash them again. This isn’t a bug in the system; it’s the system. And maybe, just maybe, if you embrace the process, you’ll create something that lasts longer than your favorite diner.
Good luck out there.