The Neighborhood Studios team spent the last few days thinking about our new idea pipeline and its output. Tons of thoughts on this after being in a venture studio for 2 years. Here are some summary stats... - 1,750 new (raw) ideas considered per year. - 110 of those are given a second glance. - 66 of those are seriously considered. - 10 of those become experiments...real products in the hands of customers. - 2 of those are spun-out into studio companies. What the studio team has been discussing over the past few days is that 66 number. That's the number of ideas that 3 people on the team can dig into every year. Venture studios can be perceived as a "startup factory"...an engine to launch startups. The reality is that venture studios are a machine to invalidate ideas. We invalidate many more ideas than we validate. We touch 1,750 ideas per year, seriously dive into 66 of them, build experiments for 10 of them and only launch 2 of them. All that work turns into 2 studio companies per year that have a way higher success rate than the average startup in the wild. Said another way...startups are hard. Talk with Tapan Patel Gabe Hart Whit Anderson IV Jonathan Brinson if you wanna talk about this. They are world class.
These numbers show the creativity and innovation that is required to come up with a successful startup. 1750 is a whole lot of creative, out of the box thinking!!
Sadly it also represents the punch in the face founders get every day. And sadly there are swaths of investors/studios who will drag founders through a laborious process of wasting their time and building up hope.
It is hard but I know you are all putting endless thought and effort into those and while it may seem small it is worth it. Still remember the conversation we had two years ago to this day.
Most people do not see the funnel involved in investing (time, or money) into a startup. Thank you for sharing this. The team is doing incredible work and putting in an incredible effort. No doubt those numbers will evolve.
I’d be curious about the other 8 from the top 10…why those didn’t make the cut and could those still be viable or for sale
Willing to share capital spend along that same funnel?
Love this
Impressive numbers. it'd be marvellous to peek into "considering" part of the process. If not by running experiments, then how those 56 ideas were dismissed.
I would put this on the wall so every startup founder can see it when they think, “I have a brilliant idea”
Dave, Could I recommend our new book to you? I hope it might offer some fresh perspective that you might find helpful in the work. Merrick The Heart of Innovation: A Field Guide for Navigating to Authentic Demand https://a.co/d/dIxAiO9