The Startup Studio: New Phenomenon or Rebranding of Existing Support? by Maximilian Haffen Lamm & Jack Peters May 2019 Master’s Programme in Entrepreneurship & Innovation Supervisor: Hans Landström Examiner: Gustav Hägg Abstract Research Problem - Considering the increasing trend towards startup studios in the business world, the literature does not provide much information regarding these start-up support organisations. In recent years, researchers have put their attention on accelerators, creating a broad understanding of this concept. It is important for entrepreneurs to be aware of the different support organisations available. Research Aim - The study explored both an accelerator and a startup studio to understand what they want to achieve, how they intend to achieve it, and how they operate to realise this. Thus, to know whether startup studios are a new phenomenon or another name for already existing supports. Methods - The study used a qualitative semi-structured interview base with one accelerator and one startup studio. In total, thirteen interviews were conducted exposing different perspectives to better understand these two structures. An analysis of four entrepreneurial methods was conducted to better distinguish their work. Results - The results highlighted differences between the organisations, in terms of both their business models and their approach to supporting start-ups. There were similarities and differences with regards to the entrepreneurial methods promoted and utilised at each organisation, with their aims, motivations and philosophy being strong influencing factors as to why. Implications - The startup studio studied, differed to several aspects of the literate covering accelerators. Literature on startup studios is limited, therefore, future research is recommended, especially through quantitative methods to find a generalisable result. Founders seeking start-up support should be aware of the potential differences of the two organisations. Directors and managers of these organisations should consider partnerships as profitable symbiosis is possible. Keywords - startup studio, accelerator, start-up support organisation, entrepreneurial method i Acknowledgements We would like to acknowledge and thank our supervisor, Hans Landström, for his support and guidance throughout the writing. Also, we would like to thank our classmates for their feedback and recommendations throughout the year. We are most grateful for the time the participants took to help us with our study. Knowing how busy the entrepreneurial life is, we are thankful for their support and willingness to help us in our journey. It would not have been possible to write this without the constant and tireless support of our mentors, families, and friends. Thank you. ii Table of Contents 1 Introduction ...................................................................................................................... 1 1.1 Background ................................................................................................................ 1 1.1.1 Accelerator ......................................................................................................... 1 1.1.2 Startup Studio ..................................................................................................... 2 1.2 Research Purpose ....................................................................................................... 3 1.3 Outline of Study ......................................................................................................... 3 2 Literature Review ............................................................................................................. 5 2.1 Definitions .................................................................................................................. 5 2.1.1 Accelerators ........................................................................................................ 5 2.1.2 Startup Studios ................................................................................................... 8 2.2 Entrepreneurial Methods ............................................................................................ 9 2.3 Entrepreneurial Methods in the Context of Research .............................................. 12 3 Methodology ................................................................................................................... 15 3.1 Research Design ....................................................................................................... 15 3.2 Sample Selection ...................................................................................................... 16 3.3 Data Collection Method ........................................................................................... 18 3.4 Data Analysis ........................................................................................................... 19 3.5 Validity and Reliability ............................................................................................ 20 3.6 Delimitations ............................................................................................................ 21 4 Results Description and Analysis .................................................................................. 22 4.1 Characteristics of the Accelerator and Startup Studio ............................................. 22 4.1.1 Overview of Cases’ Characteristics ................................................................. 22 4.1.2 Specific Characteristics of the Accelerator ...................................................... 23 4.1.3 Specific Characteristics of the Startup Studio .................................................. 23 4.1.4 Characteristic – Analysis .................................................................................. 26 4.2 Design Thinking ....................................................................................................... 27 4.2.1 Design Thinking - Accelerator ......................................................................... 27 4.2.2 Design Thinking - Startup Studio ..................................................................... 28 4.2.3 Design Thinking - Analysis .............................................................................. 30 4.3 Lean Startup ............................................................................................................. 31 4.3.1 Lean Startup – Accelerator ............................................................................... 31 4.3.2 Lean Startup - Startup Studio ........................................................................... 32 4.3.3 Lean Startup - Analysis .................................................................................... 34 iii 4.4 Effectuation .............................................................................................................. 34 4.4.1 Effectuation - Accelerator ................................................................................ 34 4.4.2 Effectuation - Startup Studio ............................................................................ 35 4.4.3 Effectuation - Analysis ..................................................................................... 37 4.5 Business Planning .................................................................................................... 37 4.5.1 Business Planning - Accelerator ...................................................................... 37 4.5.2 Business Planning - Startup Studio .................................................................. 38 4.5.3 Business Planning - Analysis ........................................................................... 38 5 Discussion ........................................................................................................................ 39 5.1 Research Aims & Objectives ................................................................................... 39 5.2 Literature Implications ............................................................................................. 39 5.2.1 General Characteristics .................................................................................... 39 5.2.2 Entrepreneurial Methods .................................................................................. 41 5.3 Practical Implications ............................................................................................... 43 6 Conclusion ....................................................................................................................... 45 6.1 Limitations ............................................................................................................... 46 6.2 Future research ......................................................................................................... 47 References ............................................................................................................................... 49 Appendix A: Form for General Information ....................................................................... 54 Appendix B: Interview Guideline for Accelerator/ Startup Studio ................................... 55 Appendix C: Interview Guideline for Companies ............................................................... 60 Appendix D: Description of Participants’ companies ......................................................... 63 iv List of Tables Table 1 Tools for design thinking processes. Adapted from Liedtka