THE ARTISTS STARTUP STUDIO – AN INTEGRATED
NEW BUSINESS MODEL FOR A NEW COMPANY
INTEGRATING ENTREPRENEURS AND ARTISTS
Netta Tzin
Dissertation submitted as partial requirement for the conferral of
Master of Science in International Management
Supervisor: Prof. Roberta Aguzzoli
2 Acknowledgme nts:
This dissertation was made possible by the help and support of numerous individuals and organizations.
First and foremost, I would like to thank supervisor, Professor Roberta Aguzzoli for providing me the advice, guidance and support through the process of conducting the dissertation.
I would like to thank all interviewees who kindly have kindly consented to spare from their time and provided me with their insights, experience and knowledge.
Special thanks I would like to pay to Mr. Enon Landenberg, for opening his doors and letting me in to s-FBI, and enabling me to conduct a case study on the company in order to collect data on the studios' operations.
Further, I would like to thank the group of artists with whom I have conducted an actual case study of new products development, and contributed to the results of the thesis. I would like to thank all the writers, contributors and academic researchers for writing their insightful papers, without them this dissertation couldn't have been accomplished.
Finally I would like to thank the ISCTE-IUL business school for providing me the tools and means for writing this dissertation.
3 Abstract:
This thesis proposes an integrated business model designed for a new company, set to facilitate artists who are creative entrepreneurs. The model proposes integration between different business practices, including new product development, multiple startup development simultaneously and communication and strategy services for brands; all practices integrate in the development and execution processes the artists who are creative entrepreneurs.
The company proposes an innovative and integrated approach, combining few segments deriving from different business models in order to match the needs of the creative entrepreneurs to thrive in the business world on the one hand, and of the cultural and creative industries on the other, including:
The unique set of characteristics of the creative entrepreneur, what defines a artist as a creative entrepreneur; what are the needs of the creative
entrepreneur in order to thrive in the business world and manage to develop their ideas into a business;
The methodology of idea developed into product, as a properly defined method which will reduce to minimum the risks and range of mistakes in the product development is a key factor for the financial success of a company; The emerging model of the startup studio is adjusted to fit a multiple
development of internal ideas into startups by an experienced team of professionals; a model which reduces the risk factors of inexperienced entrepreneurs; and enlarges the success rates as company focuses
simultaneously on more than one project, by which multiplying the rates for exit.
Shift in trends in the cultural and creative industries opening more and more business opportunities for artists to express their skills and talents.
Implementation of solutions for growing brands needs in aspects of communication of brand values and marketing strategies, which turn to concepts applied by artistic approaches.
4 Sumário:
Esta dissertação propõe um modelo empresarial integrado, concebido para uma
startup, facilitando artistas empreendedores criativos. Propõe a integração entre
diferentes práticas de negócios, incluindo o desenvolvimento do novo produto, desenvolvimento simultâneo de múltiplas startups e comunicação e estratégia para marcas; integrando artistas empreendedores criativos no desenvolvimento e processos de execução.
A empresa propõe uma abordagem inovadora, combinando alguns segmentos
provenientes de diferentes modelos de negócio, a fim de corresponder às necessidades dos empreendedores criativos de forma a prosperarem tanto no mundo empresarial como nas indústrias culturais e criativas, incluindo:
• O conjunto de características únicas do empreendedor criativo, o que define um artista como empreendedor criativo; quais as suas necessidades a fim de prosperar no mundo empresarial desenvolvendo as suas ideias e transformando-as num negócio; • A metodologia da ideia desenvolvida ao produto definido, reduzindo ao mínimo os riscos e erros no desenvolvimento do produto como um factor chave ao sucesso financeiro da empresa;
• O modelo emergente da startup studio estrutura-se de forma a ajustar-se ao desenvolvimento múltiplo de ideias internas em startups, com uma equipa de
profissionais experiente; o que reduz os factores de risco a empresários inexperientes; e amplia as taxas de sucesso, concentrando-se simultaneamente em mais de um projecto, ao qual são multiplicadas as taxas de saída.
• Mudança das tendências culturais e criativas abrindo por outro lado mais oportunidades empresariais aos artistas.
• A necessidade de implementar soluções relativamente à comunicação de valores e estratégias de marketing, transformando-as em conceitos aplicados através de abordagens artísticas.
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Executive Summary: 7
Description of the Company 9
Literature Review 9
i.New Product Development 10
ii.Incubation Business Model 11
iii.Accelerators 11
iv.Star tup Studio 11
v.The Business Model Canvas 12
Research Methodology 14
Research Design 14
i.Primary Data collection – Interviews 15
Analysis of the Business Opportunity 16
i.Interviews conclusions 16
ii.Identification of the opportunity 17
Analysis of the Business Model 19
i.Dissertation and Thesis resear ch for a compatible business model 19
ii.The Startup Studio 22
iii.Identification of the market scope opportunity 27
iv.Trends and Challenges 42
SWOT Analysis 45
i.The internal forces 45
ii.The ex ternal for ces 48
Case Study: Zoom In to a Startup Studio – s-FBI 50
The strategy of the proposed business model 56
i.The Artists Star tup Studio Methodology 58
ii.The Artists Studio's Strategy 61
iii.Communication and Branding Strategy agency 62 iv.Business Platform Segmentations (Based on the Business Model Canvas) 63
v.The business canvas blocks 63
vi.Team Structure 71
vii.Financial plan 74
a.Financial Strategy 76
b.3 year financial projection 78
viii.The company's KPI 78
References 80 Appendix 83 Appendix 1: 83 Appendix 2: 84 Appendix 3 84 Appendix 4: 85 Appendix 5: 86
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Appendix 6: 86
Appendix 7 87
7 Executive Summary:
This dissertation sets a projection of the business opportunity of a new business formatted for integrating artists both as professionals and as entrepreneurs.
The concept of the business is based on the creation of methodology fit to the needs of artists who carry entrepreneurial characteristics to scale and grow in the commercial emerging business world. The business is designed to enable the development of new products into companies in an efficient, lean and differentiated method while
sponsoring the development activity with an incoming cash- flow via providing services of communication and branding strategy consultancy.
The analysis scope provides a qualitative data collection from interviews with artists who have practiced entrepreneurial professional activities, qualitative market research to illustrate the market scope, opportunities and competitors, and a scientific and secondary literature review from which the business model derives from.
The structure of the company's business model is developed to obtain the outcomes of the analysis and enable a sustainable lifecycle for the business. The results of the analysis can be found both in the body of the dissertation and in the appendix. Business potential is displayed within figures and trend identification of the cultural and creative industry potential market. Proof of concept for each new product
developed in the company will require a customized market research and penetration model to fit its potential clients. Methods designed to achieve this framework are presented in this dissertation.
In order to reduce the risk of running out of financial resources required to sustain the business an integrated model is proposed, derived from the analytical findings of the growing needs for artistic solutions in industries of marketing, online gaming and cultural development. Professional service provided for the industries mentioned will provide the funds needed for internal new products development. The strategy for carrying the integrated model is displayed in a three- year financial plan for the business.
In addition, maintenance of an integrated business model as presented in this dissertation requires precise HR specifications that can fulfill successfully the
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business projections. The specifications for each job title are defined in the body of the dissertation based on research conclusions.
Enforcement of the business plan for the company is displayed by definition of the Key Performance Indicators, constructed to assist with indication of match or
mismatch of performance rates in order to control the processes flow and progression in comparison to the projections of the business.
The recommended business model for the company put by this dissertation is supported by wide range of indicators as one to potentially succeed, both due to the huge market opportunity and the market needs indicated. Yet, as it revolves the emerging trend of artist who are creative entrepreneurs which is at its prime stages of potentially becoming a phenomenon, and is structured under the guidelines of a relatively new business model, the Startup Studio, which has yet to demonstrate its proof of concept under the scientific measures, further evaluations based on the future growth of the market will assist in assuring the sustainability of the suggested
9 Description of the Company
The Artists Startup Studio is an innovative bootstrap startup studio, sets to develop multiple products targeted to the cultural and creative industries that have been developed in integration with artists who carry entrepreneurial skills.
The studio is structured to enable development of multiple products into startups simultaneously while providing top niche of the professional needs of the startups in order to succeed in the minimal period of time, all in all by integrating artists in the development process.
The company is constructed as a bootstrap studio, for on the one hand carrying the functions of a communication and branding agency, integrating artists as an internal part of the consulting team, and on the other hand carries out the function of a startup studio which develops internal ideas deriving from the artists into companies.
In this dissertation I will exhibit the reasoning behind the strategy of integrating artists and expanding the horizons of arts into business formats, and the choice of developing the business model as an integrated model between a communication agency and startup studio.
Literature Review
This chapter will review the key components analyzed in depth in order to define the new business model for the company proposed in this paper. Literature was identified through a combination of academic dissertations analysis, scientific articles based on relevant keywords as well as general online. I will begin the chapter with a focus on the New Product Development (NPD) strategy that supports the strategy to be taken in the business model for new products to be developed in the company. An
introduction to the Startup Incubator and Accelerator frameworks will be made for being a rapidly growing phenomenon when comes to development of multiple startups simultaneously. The chapter will continue with an overview of the relatively new Startup Studio model, which gains increasing interest in the past two years for its innovative model, an internal multiple startup development at once, which I will present an in depth analysis in the following chapters. Additionally, attention will be paid to the Canvas Business Model, on its ground I will base the foundations of the suggested business model components.
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i. New Product Development:
Most new-product activities in companies are conducted in order to take advantage of new market opportunities, to match the consumer’s desire for diverse offers, or to find solutions for consumers' problems (Kotler, Wong, Saunders, and Armstrong, 2005). The main key factor for a successful development and launch of new products is innovation. Innovation is an idea, product, service or technology that has been developed and marketed to customers who perceived it as novel or new (Freire, 2013).
Second key factor is the Marketing strategy. The first pillar of market strategy should focus on the outline of the product's target market, predicted sales and profits, market share, and the product’s positioning. The second pillar revolves pricing, distribution strategy and marketing budget. The third pillar will be focused on the long-term planning, consisting of projected sales, market share, marketing mix strategy etc.
The business analysis aims to evaluate business feasibility by mapping sales vs. costs and to exhibit the profits projections in order to identify a match with the company's objectives (Kotler, Wong, Saunders and Armstrong, 2005).
Hauser & Dahan (2008:10) have defined five stages for the NPD:
1) Opportunity Identification and Idea Generation: the identification of new product opportunities or generation of new products due to findings of unmet customer needs, followed by a market research in order to determine if the development of the new product should continue or not.
2) Concept Development: a variety of techniques can be used at this stage in order to illustrate the concept(s) of the product which will answer the customer's needs. 3) Concept Testing: in this stage the concept will be defined in order to match set of scales to which accordingly the product shall be tested upon, such as evaluations of the competitively to the market, forecasts, etc.
4) Design and Engineering: in this stage the NPD team will use one or more techniques which will help them illustrate the design and features of the product required for meeting the customer's need under the conditions of remaining profitable for the company.
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5) Prototype Development and Testing: in the final stage the team is required to develop a product's prototype lean as possible in order to test it on the market and examine its acceptance rates.
In this paper I will analyze the stages of the NPD as presented in the dissertation: New Product Development: How to Introduce a New Product in Highly Competitive Markets
(Freire, 2013) and extract the relevant states for the methodology of new
product development for the suggested business model.ii. Incubation Business Model:
The incubators were identified as groups that provided shared workspace, ad hoc mentoring and shared resources and services, which multiplied massively during the 1990's1 (Hoffman & Radojevich-Kelley, 2012). The main purpose of a business incubator is to create a favorable business environment for start-up firms to compensate for the lack of financial, knowledge and networking resources they generally have (Commission, 2002).
iii. Accelerators:
The Accelerators are identified as emerging groups who spun off the incubator model, known to be a group of experienced business people who are set to provide services, office space, mentorship, networking, management services, knowledge, and
expertise to nascent firms on an as- needed basis to help them succeed in the early stages of venture life, most commonly in return of equity. The accelerators aim to assist with the process team formatting, idea sculpting, and guide the startup throughout the stages from idea to product development. (Fishback, Gulbranson, Litan, Mitchell, & Porzig, 2007)
In this paper I will examine the degree of competency of the accelerator model to the needs of the company's ones.
iv. Startup Studio:
The Startup studio is a relatively new business model, which started to raise its head in the past few years. Up to date, there are just about over 100 startup studios around the world, as they keep growing. The core business of startup studios is to build startups in a sustainable and repeatable way. Many studios finance their operation with venture capital, while some take the bootstrap approach, and take on themselves
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agency work, build up cash flow, and use this to build their own startups (Szigeti, 2015).
Main pillars of the Startup Studio (Szigeti, 2015): Ideas are generated internally
Repetition: the ideas should be generated and developed rapidly Infrastructure: The studio should own an infrastructure made of pooled
resources: talented people, serious processes, useful tools and a strong
network. A studio should not be just an empty structure owning a portfolio of companies.
Unsuccessful ideas are cut off quickly as the studio can reassign the team to other initiatives.
Successful initiatives spin off into a separate company, and continue their growth as an independent startup.
I will demonstrate an in depth overview of the Startup Studio model and in means of structuring the business model for the company according to its guidelines.
v. The Business Model Canvas:
The Business Model Canvas was first introduced by Alexander Osterwalder, a business theorist and consultant. After being introduced to the Model during my International Management Masters studies, and after applying the model in our International Project, I have found the strength and relevance of the model to a new business modeling process, as well as its advantages while defining the business strategy.
Since the dissertation addresses the development of a new business model, the usage of the Canvas blocks is the most relevant for the process.
As defined in the book "The Business Model Generation"(2010:14), the core
definition of a business model: A business model describes the rationale of how an organization creates, delivers, and captures value.
The Business Canvas Model, opposed to the traditional, intricate business plan — is set to help development and definition of new businesses and startups, as well as
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organizations conduct structured, tangible, and strategic conversations around new businesses or existing ones.
14 Research Methodology
The creative economy has been playing a major role in the 21st century global
economy, as being one of the fastest growing industry sectors, capturing both national and international markets, and involving not only sectors of the creative industries but also other sectors such as Software development, digital services, communications and more (Henry, 2007).
Changing forces in the business environment such as globalization and technological progress are leading the market to become highly customized and fragmented. In an ecosystem as such new marketing strategy and planning, product development
approaches are in constant reinvention process, and adopting artistic implementations in order to target the market based on the constant changes (Fillis, 2009).
Under these emerging shifts in the consumption and commercial communication fields, artists find more paths to express their artistic skills while getting involved different types of businesses, and grow to become entrepreneurs themselves.
In order to define the main components of the business model pillars I will portray the research methodology framework I to be emphasized in this paper.
Research Design:
The research design consists of both primary and secondary data collection and analysis, in favor of the following:
a. Identification of the creative entrepreneur: due to lack of scientific research on the topic, I will present a qualitative research I have conducted through
interviews with artists who have taken an entrepreneurial approach, either by becoming entrepreneurs themselves or either by working for a venture which its core business revolves introduction of innovative approaches to introduce artistic products in the commercial business world.
b. Identification of the opportunity: Based on the interviews conclusions, I will exhibit indicators for the opportunity of the "creative creator" I have collected from secondary resources.
c. Dissertation analysis for business model compatibility: in order to structure the opportunity in an adequate model, I will present characteristics of relevant business models and methodologies from academic papers and present the conclusions which will be relevant for the company's needs.
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d. The Startup Studio main segments and profiling: I will review the relatively new model which has evoked in recent years through secondary data collected, and portray its competency to the company's business model suggested in this paper.
e. Market Scope and Operational opportunities: After identifying the key segments for the business purposes, I will show an overview of the markets' scope in which the company will be placed in, and provide the indications for its fit to the market.
f. Trends and challenges: outlining the identified trends and challenges based on the opportunities identified and given market scope, from which I will
construct the SWOT analysis for the projected business model.
i. Primary Data collection - Interviews:
As data on the topic of artists as entrepreneurs is merely to be found, I have taken the initiative of conducting a qualitative data collection from interviews of artists who become involved in the entrepreneurial and commercial business world. The purpose of the interviews was to identify attributes of the artists who are willing and intend to transform into entrepreneurs, and to track emerging trends of integrating artists in different business models.
I have conducted 5 interviews in Berlin, Germany with artists who have become entrepreneurs and with artists who work in organizations which have taken entrepreneur initiative (appendix 1):
- Joachim Sauter, Media artist, Designer and Founder of Art+Com
- Theo Ligthart, Artist, Director and Entrepreneur, Founder of "Das Korn" spirit brand.
- Regina Tetens, Curator and Exhibition Manager, Senior Project manager at Art+Com
- Iepe Rubingh, Performance artist and entrepreneur, Founder of Chess-Boxing - Tristan Muller Knapp, Artist and Project manager at PictoPlasma
The main research questions to be defined through the interviews: - What is the connection between artists and entrepreneurs?
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- Trends in branding and communication strategies characterized by the integration of artists
The conclusions to be identified will consist as the guidelines for identifying the business opportunity assumed prior to the interviews.
Analysis of the Business Opportunity
i. Interviews conclusions:
What are the added values brought into innovation and communication by artists?
Iepe Rubingh states a lot of innovation can be done by artists, as being an artist is mostly about thinking. Rubingh finds the way artists are thinking is different than most people apply it, as being completely free, experimental and innovative. The artist way of thinking is not constrained to definitions, titles and models. In Art+Com, the artistic approach is implemented through "communication of emotional
content"(Regina Tetens of Art+Com), or "Poetry" (Joachim Sauter of Art+Com), an indirect, playful and metaphoric way of communicating, enabling the audience the freedom of deciding what and how much would they like to explore. Another added value was to be mentioned by Tristan Muller Knap of PictoPplasma was the growth of imagination and creativity as the artistic messaging is one to be non judgmental. The correlation between artists and entrepreneurs:
Almost all interviewees discussed the distinction to be made between an artwork and a product. While an artist makes art, the entrepreneur creates a product, thus, the artwork intended to become a product must shift itself from the art realm to the
business world. Another distinction which was discussed in all interviews was the one between art and creativity. According to Theo Ligthart, the creative industry and the art world are not connected, although the boarders between them are blurred in the viewer's perception.
The main correlations between artists and entrepreneurs were identified by the interviewees to be the out of the box thinking; creativity; the ability to research a
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market and carry out similar characters, such as: passionate, stubborn, curious, they like to share with others.
Another correlation to be identified was through the funding strategy; both artists and entrepreneurs (generally speaking) seek sponsorship for their work (Entrepreneurs from investors and VC's in their startups; Artists and musicians from Art buyers, galleries, labels etc). Therefore both must be persistent, stubborn and have faith in their creation.
Artist imple mentation in business models:
The interviewees have identified few trends in which artists are becoming more and more viable for different types of industries;
Tristan Muller Knap sees artists becoming more involved in the gaming and video games world, as the industry is flourishing and both parties will benefit from it (industry – creative growth, more products, innovation; artists – another stream of income).
Most interviewees discussed the advantages of integrating artists in processes of innovation in companies. As they have identified a shift in brand communication from content to emotional communication, more and more agencies are applying it by integrating artists, as well as larger amount of co mpanies are starting to integrate artists in the work flow as part of their strategy.
ii. Identification of the opportunity
In this chapter I will identify the main characteristics of the creative entrepreneur detected from the interviews, and define them according to a secondary research analysis. As there is a lack of scientific research to be found, the secondary research scope included an in depth analysis of 5 articles revolving the topic of the
entrepreneurial artist, collected according to key words and references, from which I will extract the characteristics of the entrepreneurial artist, the opportunities for the entrepreneurial artist to expand his sets of skills beyond the art realm, and the
challenges facing the entrepreneurial artist once taking the entrepreneurial approach. Supporting the basic assumption, as described in the article "The Death of the
Artist—and the Birth of the Creative Entrepreneur"(Deresiewicz, 2015), the era of "Creative entrepreneurship" has begun. Main characteristics of the shift are to be defined as:
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Interactivity – interacting directly with the audience and users through personal
websites and others streams of communication; interacting directly with the users and generating for them a personalized experience through the work of art or craft.
Professionalism – artists operate more as professionals, operating from the
competitive concept of networking; shift from the consumed "Work of Art" to commodities, consumer goods;
Multi-Tasking - in the era of the internet and social media, artists have the direct
access to their targeted audience. As artists can take direct actions of selling, distributing and promoting through digital means of communication, such as
websites; social media platforms (Facebook, Twitter, Soundcloud, Deezer, Instagram are to name a few), artists have broadened their field of expertise to promotion, booking and self management.
Another important diagnostic revolving the on- growing evolvement of the creative entrepreneur is emphasized in the article is described as an extension to
"producerism ", is product as an experience. As the age of creative entrepreneurship, indicated with Social Media (Facebook, Instagram, etc), and companies as Adobe, Apple, Wacom and more, product becomes an indicator for lifestyle, wrapped as a total experience which is carried on the wings of the online network above all (O'Neill, 2016).Another premise which has derived from the interviews was the existence of distinctions of the artist entrepreneur compared to the non-artist one. Economist and academic Richard E. Caves of Harvard has managed to determine the artists' uniqueness in the entrepreneur world (Conner, 2015) as followed:
Demand is unce rtain. For artists who are motivated by the fulfillment of their artistic vision rather than meeting a market need, demand for the product is uncertain in its pre-market stages, and will depend greatly on the eventual demand of the market observer.
Creative workers care about their product. As entrepreneurs, the artist’s passion for his product is one of the most enthralling business motivations. Yet, emotional attachment to the product might turn to a business barrier as his perception of the business favor might become less objective as a result. Some creative products require diverse skills. Taken to an extreme, for
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resides with the artist alone. The more unique the offerings, the more challenging it will be for the production of the service or product to scale. Vertically differentiated skills. Artists are endowed with diverse sets of skills
they need to nurture and use in order to both create and expose their works of art.
Time is of the essence. Beyond the time the artist needs in order to create, business growth demands time devoted for marketing, creating user base and more, which needed to be taken into account.
One of the challenges which came up from the interviews creative entrepreneurs face, is finding the balance between running a company, business development, business maintenance and clearing time to feed their artistic soul. According to The Design Trust (appendix 3) creative entrepreneurs should spend around 40% of their time creating, 40% on marketing, 10% on administration and 10% on professional development (Tickle, 2015).
Analysis of the Business Model:
i. Dissertation and Thesis research for a compatible business model
Since the main objective of paper is to develop and justify new a business format that will provide for artists the professional and financial means in order to translate their ideas to a business, in this chapter will be reviewed an analysis of a number of dissertations and Thesis's revolving business models and strategies, from which will be extracted components that shall contribute to the presented business model. After analyzing eight dissertations discussing different structures of business models (appendix 2), I have decided to narrow down my study to the three most relevant dissertations for the business model I will propose The dissertations, which focus on the segmentations of new product development; accelerators and incubators defining and business model components will contribute to the development and structure of the new business model pillars I will propose.
The accelerator business model
In general, the accelerators are a spin off emerging from the incubator business model. The accelerator is a distinct model of the incubation, which is in a stage of constant growth in the past decade, namely due to the cha nging economics of
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startup firms. Startups have found that shortening the time-to- market is derived from decrease in technology costs, simplified channels to consumers and improved monetization strategies. From the investors' point of view, the acceleratio n
platform enables them to invest in early staged startups at lower risk (Van Huijgevoort, 2012).
Although it is relatively hard to generalize one cohesive model for accelerators, throughout the research I managed to identify the main attributes of acce lerators (Van Huijgevoort, 2012; Barrehag, Fornell, Larsson, Mårdström, Westergård, Wrackefeldt, 2012):
An application process that is open yet highly competitive. Provision of pre-seed investment, usually in exchange for equity.
o Investments stand on typically dozens of thousands of dollars in
average, although the amount is varies from one accelerator to another o Most accelerators take equity of 7%-15%.
Accelerators consist of core team of the founders and only a handful of a full time staff, which is commonly trusted on the operations.
Mentors are most likely not getting paid for mentoring the teams (some exceptions are witnessed for instance in Y combinators, Techstars and others) Focus on small teams, not on individuals.
o The vast majority of the accelerators define as a threshold criteria the applicants to be small teams
Time-limited support comprising programme d events and intensive mentoring
o Programs in accelerators are commonly limited to 5-12 weeks and broadly provide the following:
Weekly – biweekly mentoring Networking base
Pool of potential investors
Business structuring, problem solving guidance Branding and reputation strategy consulting Events, conference etc.
Startups supported in cohort batches or ‘classes’.
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Most likely compatible for IT, mobile, social media and fin-tech sectors. Likely to provide an open space for the startups to work at during the program. (Barrehag, Fornell, Larsson, Mårdström, Westergård, Wrackefeldt, 2012)
The similarities in the value proposition of accelerators to the new business model I will propose:
Development of several projects simultaneously
Enabling a potential investment in a short period of time Focus on the lean startup methodology
Networking, community, connections to potential investors
Professional A-list team which escorts the process of development
(Barrehag, Fornell, Larsson, Mårdström, Westergård, Wrackefeldt, 2012; Van Huijgevoort, 2012)
Differences from the business model I will propose:
The business model I will propose will operate as an internal ideas and concepts development into startups, whereas in the accelerators the startups have brought and began developing their concept externally.
In the business model I propose, the body consists of a core team of professionals who escort the development of products from day one. In accelerators, the
mentoring is brought as a consulting service and not dedicated to the process of the development.
The new product development process:
Following the key characteristics and stages defined for the New Product
Development (Hauser & Dahan, 2008), I will illustrate the key stages of New Product Development identified in the dissertation I have analyzed, New Product
Development: How to Introduce a New Product in Highly Competitive Markets (Freire, 2013) and withdraw the components which are relevant to proposed business model.
The New Product Development process:
New product development requires a market research through which the product team should manage to answer certain questions, in order to determine
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if the development of the new product should continue or not. The questions revolve the teams' expertise for the development of the new product, are they skilled to develop the product? Is there a solid and strong demand for a
product as such? Does the product align with the existing product mix? Which competitive forces act in the market?
In the marketing test stage, a sample of the product is tested on a small group of users in order to test the product and its marketing mix strategy under realistic market conditions, and draw conclusions.
Based on the test stage conclusions the company will enter the stage of product development.
The last stage to be described is Comme rcialization which is an expensive process, thus companies must rely on sufficient funds for advertising, sales promotion and to gear up production to meet demand (Kotler, Wong, Saunders and Armstrong, 2005).
Differences from the business model I will propose:
Although the new product development characteristics and process, discussed in the dissertation New Product Development: How to Introduce a New Product in Highly Competitive Markets (Freire, 2013) meet the required objectives of a new product development I will implement in the proposed business model, few elements sets them apart:
The process in the dissertation illustrates a new product development out of an operating company with a defined line of products, whereas in the proposed business model each product will be relatively "new". The process proposed in the dissertation relies on existing development
budget, while in the case of a startup there is a need for prior investment in order to develop
The test stage in a startup environment should be extended to a Proof Of Concept, a stage which demonstrates not only the product's marketing mix, but also the financial viability of the product.
ii. The Startup Studio
In order to develop a doable business format, which will on one hand fit the innovation process through an artistic think-tank, and on the other hand enables a
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stream of multiple projects development, scaling and maintenance, while bringing to the table the artistic innovative approach I have came to conclusion I need to keep looking for an adequate business model.
As I have conducted a case study (appendix 5) with a group of artists in order to learn better the needs of the business, I have narrowed down the desired strategy upon I continued looking for an equivalent business model which will combine the methodology familiar in a studio, and the startup accelerator.
That was how I have come to cross by the Startup Studio Business Model, and found it to be the one on which I will base the development of the Artists Start-Up Studio Business model.
The guidelines of a startup studio:
There are a few segments by which the Startup Studio can be identified upon (Szigeti, 2015):
A. Team: the studio's team is set to generate and develop multiple ideas into startups. Therefore the studio's founders should define in advance:
i. What is the core vision of the startup studio? Which domains of the market will the studio grow companies to?
ii. What kinds of expertise are needed in order to seize the potential of the startup studio?
Once these are figured, the founder will need to recruit the team of expertise who carry both entrepreneur mindset as well as excellent employee skills.
B. Strategy: the studio will have to design the methodology of idea generation, concept design and workflow, as the studio is set to work on multiple concepts at once.
C. Investment: the studio needs to fund itself from day one, as there are initial
costs to start the studio.
i. In the Founder-funded studios, the founder is an entrepreneur who finances the studio from his earlier successful exit.
ii. In Venture-backed studios, the studio raised a larger round and is which is invested into multiple startups.
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iii. In Bootstrapped studios, the agency work provides enough cash flow to enable startup building.
D. Operations: Lean, agile and decisive are most common methodologies applied by the startup studios, alongside expertise in portfolio management.
E. Equity: in the majority of the cases, the studio who provides the initial idea takes between 45%-85% equity, depending on the studio's initial funding and services provided for the startup.
F. Exit Strategy: Startup studios aiming for quick time-to- market and positioning their startups as ones to be an ideal acquisition target, from which they will develop more startups. In other cases, a startup studio will plan to build a unicorn which will take over an entire market.
The Three types of Startup Studios:
Internal companies buildup:
This startup studios main goal is to build companies from the ground up. The core team focuses on developing and designing its own internal ideas, bootstrapping them and as they make a decision which one to neglect and which one to head on with, they reassign the team accordingly and hire external co- founders to continue with the execution of the startup.
Since the startup studio is an in-house studio which develops its own conceptual startups with investors and external collaborators, it is crucial to define the characters of the team members to be recruited. As described in (Szigeti, 2015), these are the fundamental characteristics for the team members in a startup studio:
The core team is expected to provide an entrepreneurial expertise, as well as being a resource of experts in their own field.
The core team is to be selected based on following qualifications:
1. Experts in their field – having proven experience, success stories in their arsenal.
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3. Multi-tasked – as in the startup studio projects will be developed
simultaneously, it is highly crucial for the core team to have the ability to multi- task.
4. Team playe rs – as the idea generation and projects developments are all conducted within the team, the members must be team players, have the ability to work as a team as well as individuals.
The team acts as a think-tank of innovators and developers. Ideas generated by the team will be developed and evaluated according to a financial and go to market roadmap. Based on these segments, a go / no go will be decided.
Most common process of internal companies buildup startup studios:
I. Flow Chart of internal company buil dup, self illustrate d
Revenue stream:
The internal Startup Studio company builders develop multiple startups parallel. These studios usually don't accept external applicants to develop, and rather focus on their own ideas.
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They raise investments globally for the studio, and grow the companies hand by hand with the co- founders who are hired by the studio for every targeted startup.
As the startup launches, it starts raising capital and hire employees on its own, yet receives support both financially and operationally from the studio, until it grows entirely independent.
The studio remains with shares in the startup, usually of 50%.
The process, depends on the core business, can run from development to execution between 6 months to 18 months. Based on the internal company builder model, the two other models of startup studio carry different segments as followed:
The Investor Startup Studio:
The investor startup studio is a studio sets its goals on internal development of companies, bottom up, from their internal pool of ideas, combining with investments in early staged startups, in which they believe and relate to. In case of investment in an early staged startup, the Studio becomes a partne r, not only an investor, and develops alongside the founders the startup.
The incubator Startup Studio:
The incubator startup studio takes in startups, usually in initial stage, with one founder or more (depends on the company); from that point, the studio provides the startup a seed investment; facilities; the startup studio specialists; mentoring; and networks; usually for a period of 6 months up to a year.
The startup studio, in return, as it is dedicated to the startup, receives commonly equal shares in the startup.
It differentiates from the accelerator / incubator model in few aspects: 1. A dedicated team of specialists (the core team of the startup studio) is
providing services and knowledge to the startup
2. Provides support for a longer period of time (incubators and accelerators programs are typically for few weeks / 3 months)
3. Partners with the founder – more dedicated to the success of the startup 4. Facilities, for a longer period of time.
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5. Takes shared equity (in accelerators the equity is usually up to 15%)
6. Provides a dedicated mentorship, rather than in accelerators where mentoring occurs once-twice a week.
iii. Identification of the market scope opportunity:
Based on the research findings, I will illustrate the market opportunity which has been identified based to on the following segments:
a. Branding, Campaign strategy and Commercial advertisement b. Online Gaming
c. Cultural And Creative Industries d. Accelerators and Startup Studios
a. Branding:
In his publication, Fillis (2009: 3) states "…art is capable of creating a language of
communication, visualization and experience which connects with marketing".
Marketing and Art theories share in common the way they are being perceived, to be the outcome of social processes consisting of production and consumption. The conception of artistic knowledge is expanding to the realms of scientific testing, management and marketing researchers, who embrace at current times artistic forms of enquiry to be their main data collection method. (Brown & Patterson, 2000; Schroeder 2001; Fillis, 2009). Kotler’s commentary suggests that marketing theory would be more creative if artistic thinking is embraced (Kotler 1979; Fillis, 2009). Once observing trends in branding and marketing in the past years, there is a velar shift towards the directions (Brenner, 2016):
Personalization And Simplicity
As consumers face numerous choices when making a purchase, while at the same time wish to save as much time as possible on it, brands are placing as one of their top priorities to find personalized solutions whic h will fit needs and interests of the consumers. In order to accomplish that, alongside increased usage of
algorithms and machine learning tools, brands investigate the taste of the potential consumer in order to fit his desires and needs.
28 Generation Z Consumers
Generation Z, known to be born between mid to late-1990s and 2010 is the generation which grew up to a technological and digital world. This is a
generation of entrepreneurs, who are more likely to be independently minded, and embrace diversity and differences. As their attention extent is rather shorter that generation Y, in order to capture it from Gen Z, messages will have to be
delivered in a high arousal context, one they can relate to its values and one which will fit their needs.
Wearable Technology, Virtual Reality And Artificial Intelligence
Virtual reality and wearable technology are soon to be publicly common. Through VR and Wearable Technologies, brands story telling will become interactive, augmented and be told in a 360 surround. These technologies embrace and endorse creative and artistic approach.
Video & Moving Images
Video has become an incredibly popular tool for branding, and will continue its pick as the attention spans constantly shortens. According to Cisco, the consumer internet video will compensate 80% of the entire internet traffic by 2019. As video will grow popular, the integration of artistic force in the content delivering will grow.
Meaningful, Real-time Communication
Consumers carry on growing expectations from brands to communicate in more and more personalized, real time interactive means. In order to fulfill those demands, marketers shift their focus to strategies which de liver these experiences, among others to be found video streaming, webinars and more. Another strong key factor to get people’s attention and engagement is finding touch points in which the brand relies on connection with the consumer via emotional and reliable connection. This type of connection buildup happens to be one of the greatest strengths of artists.
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Many brands have come to realize in the past few years the effectiveness of reaching out to their consumers on the emotional aspect, rather just on the sales touch-points. In order to achieve brand awareness and loyalty while generating leads for sales, it can be witnessed more and more brands choose to integrate as part of their marketing strategy interactive events. Through those the brands manage to bring added value to their targeted audience, and reflect the brands values in an indirect form of messaging. Brands are shifting focus to how to effectively curate content. In order to do so,
brands must begin with knowing what their audience wants. In the Fast Company Innovation Festival, Bob Pittman, CEO and Chairman of iHeartMedia stated : "…I
think anytime you cut out ‘experts’ who are passing subjective judgments and allow the consumer to decide for themselves, that’s always better….What it does is it also inspires new people. We see an acceleration of innovation, creativity, new ideas, and new directions." (Ifeanyi, 2015)
Moreover, the subject of storytelling was referred to become more and more popular as means of message delivery for brands. As brands turn over to the storytelling, the need for the artists becomes clearer, as the heart of arts relies on it, as explained in the article: What makes us feel? What makes us think? (Ifeanyi, 2015)
Brands such as Nike, Adidas, Philip Morris, Heineken, Volkswagen, Johnny Walker and many more approach these streams by endorsing a tactic in which they
collaborate with artists, musicians, video artists, etc in order to curate an experience for their customers. (Ifeanyi, 2015)
The implementations are ranging from events in the name of the brand, in which the product itself is far from being the center, but rather the entire experience around it (Adidas pop-up DJ sets; Philip Morris party with street artists and live shows, etc); Special events to launch a product (Nike Feel London, Nike Fuel Station, etc); Special events to generate brand awareness (Hugo Boss 20 year exhibition in London,
Platoon.org), and many more. (Appendix 5)
These events and campaigns are profiled with high budgets (can range from hundreds of thousands of dollars to millions; Based on references from marketing and digital creative officers, Appendix 6), and usually integrate musicians, artists, designers, video artists, light and sound engineers and many more.
31 Market share:
Adve rtising & Branding Industry Statistics and Market Size Overvie w
Amount Unit Date Source
Worldwide
Global Advertising Spending 546.0 Billion US$
2014 eMarketer
Projection 578.0 Billion
US$
2015 eMarketer Global Digital Advertising Spending 171.0 Billion
US$
2015 eMarketer Global Mobile Advertising Spending,
Estimate
68.7 Billion US$
2015 eMarketer I. Table 1: Source: eMarketer
According to the figures in table 1, it can be implied that a domestic market potential for artists exists, in which artists can be integrated as a working force, hence,
expanding their streams of income, as well as positioning themselves as a centric part of the industry.
One example for an industry as such which thrives is the Online Gaming Market.
b. Online gaming market:
The online gaming market has grown rapidly in the past years, mainly due to the bloom of the internet. The online entertainment market has almost tripled itself in the past decade, on account of the burst of technological innovations rapid growth of mobile interaction.
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II. Chart 2: Source: SuperData
According to the Supertdata research publication (appendix 3), the biggest segment in the gaming industry is mobile gaming which has been estimated by $22.3bn in 2015, and projected to increase to $24.8bn by 2018.
The growths in this industry opens several of opportunities for artists; observed trends as Augmented reality, online interactive games, video games, streaming and so on need to attract users in creative, amusing and intriguing ways, for which they use the creative skills of the artists in illustration, video, music and so on in order to generate traction.
c. Cultural and Creative Industries:
I will present the conclusions of a secondary research I have conducted in order to identify the trend of cultural development, through investigation of few agencies which are flourishing in the past few years. The companies I will present were chosen due to their focus on creating means of communication and empowerment of arts and culture through commercial and technological means. The companies I will focus on are (appendix 4):
- Techno Art - Platoon - Breakfast
- Marathon artists labs - Art.com
32 Platoon:
Platoon cultural development is an international organization, holding 2 active spaces, Berlin and Seoul, and opening the third space in Mexico in June 2016.
The platoon organization consists of few different branches: 1. Location: Berlin; Seoul; Mexico City
2. Full time employees: dozens
3. Number of years active: the communication a gency – since 2000; The construction: Seoul – 2009; Berlin – 2012; Mexico City – 2016. 4. Main business divisions:
Communication agency – Platoon Agency focuses on creating brand communication and brand identity through strategy development, positioning and creation of consumer campaigns online and offline. The strategy used is connecting brands to leading, maybe even ‘hard to reach’ areas of culture, enabling engagement with open minds and participation in daring projects, via Think Tanks of the brand repres entatives and artists from the global network of Platoon, consisting of over 8000 members. The agency has worked with Global brands such as Adidas, Nike, BMW, Volkswagen, Hugo Boss, etc.
Artists Residencies: The Platoon Artist Residency program offers a residency of 3-6 months, and provides the facilities and networks. House of Cultural Happenings: Facilitates internal and external selected
events, such as Conferences; Festivals; Parties; Workshops and more in the Platoon constructions.
5. Business Model: The main business model relies on the communication agency, which is collaborating with brands for commissioned projects. The spaces in the various locations are temporary containers constructions. They function both as the offices of the agency, the artists residencies and facilitate the events, both internal and external (externals rent the facilities).
Breakfast:
Breakfast is a hybridized studio and agency which, according to its one of the
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products and custom technology for each project and brand they service"2. Their projects and products are oriented on connecting te online world to the physical world.
1. Location: New York, USA
2. Number of full- time employees: around a dozen 3. Number of years active: since 2010
4. Main business divisions:
Ads/ Marketing / Communication agency – Breakfast is a studio of creative designers and developers who focus on activities such as design and ideation. The studio curates targeted campaigns which blend digital technology with a physical dimension. Among their clients names such as Instagram, Google and more are to be found. Prototype development: The studio sets another focus on internal ideas
development, nurturing product and prototype which, in their own words, "sometime we license or sell that IP, and sometimes we run with a product ourselves."
5. Business Model: commissions from campaigns (Agency) and licensing / selling IP or products rights for the product development.
Art+Com:
1. Location: Berlin, Germany
2. Number of full- time employees: around 50 3. Number of years active: founded in 1998 4. Main business divisions:
Communication– As a communication agency, Art+Com takes in projects approached by brands; content is oriented for site specific and is always in the foreground, never technology. Named projects have been collaboration with BMW; Deutsche bank; Museum of Nature and science Berlin, etc…
Art: Art+Com studio creates location based media sculptures and installations, as in their words "giving them an identity beyond
2
As appeared on an interview in Mashable: http://www.emarketer.com/Article/Social-Network-Ad-Spending-Hit-2368-Billion-Worldwide-2015/1012357
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architecture and function." These art projects are both commissioned, and self-commissioned.
Research: Art+Com research division focuses on exploration of new media, both independently and in co-operations both with companies and academic institutions. The main area of research focuses on expressing new means of communication and interaction combining realms of technology and art.
5. Business Model: Art+Com business model relies on the budgets assigned by brands for the commissioned projects, sponsors from the research projects and sponsors for the art projects by public and personal bodies such as museums; municipalities and so on. Based on their incoming projects they generate the income fee and retainer fee.
Techno.Art:
1. Location: Tel Aviv, Israel
2. Number of full- time employees: about 5 3. Number of years active: Since mid 2015 4. Main business divisions:
Accelerator: Techno Art defines itself as a "Startup incubator for arts, culture and media technologies". The main business relies on the acceleration program, as followed:
10 teams, in pre-seed and seed stage, from the landscapes of art and cultures
5. Business Model:
Techno Art business model is structured as an accelerator. The accelerator selects up to 10 pre-seed / early stage startups for a 3-6 months program, in exchange for equity in their startups. In return, the startups receive:
- Up to $100K investment
- Weekly mentoring from the pool of mentors of the program - Entrepreneur tutorials and conferences held by Techno Art
- Investors pitch – in the end of the program the startups will have the opportunity to pitch their startups to potential investors in order to raise an investment.
35 Marathon Artists labs:
1. Location: London, UK
2. Number of full- time employees: 5 team members, 45 mentors 3. Number of years active: since January 2016
4. Main business divisions: the accelerator is a joint venue brought by
collaboration between Marathon Artists, a record label based in London, and Sushi Venture Partners, an investment firm focused on media tech startups. The accelerator offers a 6 week program for mature startups which already run traction, and focus 100% on business development. The startups core business is one which brings to the table an added value for independent artists and managers. Among the mentoring provided is in business development, communications and PR.
5. Business Model: the accelerator doesn't take equity from the startups in the program, but do invest in long term relationship with the ones participating in the program. The startups which are chosen are ones which help marathon artists label audience as well as ones which in potential will be invested by them.
Quirky:
1. Location: New York, USA
2. Number of full- time employees: around 200 3. Number of years active: 2009-2015
4. Main business divisions:
E-shop of inventions, community driven both by inventors, community and creators.
5. Business Model:
Each submission costs 99$ to be submitted. After the selection process by the platform's team of designers, a go / no go is taken on each submission. Once decided to take a project, team of product designers will start evaluating, adjusting and producing the product. Suppliers set the minimum amount of products to be ordered in pre-sales in order entering the production stage. Only once a product hits the minimum number of pre-sales, product enters
36 Sales revenues are split accordingly:
30% - idea inventor
30% - product designers and suppliers 40% - quirky
Although the company has managed to raise $183M in funds, it hit bankrupt in 2015 and got shut down.
General Cultural and Creative market scope:
Following the identification of the existing companies who work in the industry of cultural and creative development, I will present the Market Scope of the industry in order to examine the potential operation in it. UNESCO (2015) defines cultural and creative industries as activities “whose principal purpose is production or
reproduction, promotion, distribution or commercialization of goods, services and activities of a cultural, artistic or heritage-related nature.”
In 2013, cultural and creative industries worldwide generated revenues of US$2,250b and employed 29 million people. The sectors defined by UNESCO under Cultural and Creative industries are: Television, Visual Arts, Radio, Music, Newspapers and
magazines, Advertising, Architecture, Movies, Gaming, Performing Arts and Books. The total revenue from the industry in 2013 was between 1.1% from total GDP to 3.3%, as explicated:
Revenue Jobs % of Total GDP
North America US$620b 4.7m 3.3%
Europe US$709b 7.7m 3%
APAC US$743b 12.7m 3%
South America US$124b 1.9m 2.2%
Africa and Middle East
US$58b 2.4m 1.1%
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The UNESCO and CIASAC 2015 report3 defines four qualities of young cultural and creative workers for which they stand out from the crowd:
- Youth: In Europe, CCI sectors typically employed more people aged 15–29 years than any other sector (19.1% of total employment in CCI vs. 18.6% in the rest of the economy) in 2013. In Central and Eastern Europe, on average, young people account for 1.3 percentage point more jobs in the creative economy than in the economy as a whole.
- High productivity: CCI jobs in some sectors contribute more to GDP than the economy- wide average. In China, the film and television sector generated 78% more added value per worker than the rest of the economy in 2011, according to Oxford Economics. In South Korea, the productivity of film and television workers is twice the national average.
- Independence and entrepreneurship: CCI have always been fragmented, and creation driven by small businesses or individuals. More than half (53%) of Canadian gaming developers say they are independent operators. In the US, artists are 3.5 times more likely to be self-employed than US workers overall. The internet, digital technologies and mass travel have lowered entry barriers, making it far easier for an individual to start a creative or cultural business, and gain a global audience and reputation.
- High level of education: CCI workers are typically more educated than the average. In Brazil, CCI workers had 17% more years of education than the national workforce average in 2010.
The online consumption of cultural content is expecting a constant growth. As new forms of cultural content, developed for digital platforms, have emerged to boost creativity and online innovation, electronic devices and telecoms spends rely greatly on the demand for such content. For instance, sales of electronic devices as such peaked US$532b in 2013. The devices consumption increases the demand for new cultural content, which enables additional development of content (videos, gaming, etc.).
3
Cultural times The first global map of cultural and creative industries, December 2015, UNESCO and CISAC — the International Confederation of Societies of Authors and Composers
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III. Chart 3: Source: The cultural and creative industries in the macroeconomic value added chain
For instance in 2010, the cultural and creative industry contributed approx. 63.7 billion Euros to the gross value added in Germany, placing the industry as one of the most important economic fields of the country (Prongos AG, Fraunhofer ISI, 2012). Another significant added value of enterprises to their customers is new concepts development (66.7%) and idea generation (38.4%), which are the most mentioned support services of enterprises from cultural and creative industries. Cultural and creative industries are responsible to 45% of new contexts and context applications through existing materials and technologies. (Prongos AG, Fraunhofer ISI, 2012).
d. The Startup Studio Market Scope and Opportunity:
According to Gust Foundation global accelerators report for 2015 (appendix 3), $121M has been invested in 8836 startups from 387 accelerators. The report indicates that mass majority of the acceleration programs are not- for-profit, and tend to focus on industries with a specific public benefit, such as Health Tech and Edtech.
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When it comes to exit of the startups, as can be seen in the chart below, US excluded, an occurrence of an exit remains a typically uncommon event, by which can be explained why accelerators have pivoted by diversifying their business model.
IV: Chart 4: Source: Gust
Referring to the trend in the markets accelerators are interested in, the table below exhibits the percent of accelerators paying interest in each field:
Markets accelerators are interested to invest in
Percent of accelerators Mobile apps 63% Health 62% E-commerce 55% Education 53% Cloud services 50% Wearables 46% Adtech 35%
Social media analytics 33%
Cleantech 32%
Drones 30%
III. Table 3: Source: Gust
The markets marked in pink are the markets relevant to cultural and creative industries, from these it can be presumed there is a potential of interest to startups emerging from cultural and creative industries.
41 Overvie w of Startup Studios activity:
The following charts will display the global distribution of startup studios as for 2015 and the division of startup studios according to the type of model. Following to that, I will present the ranking of the Startup Studios based on funding raised.
Map of existing Startup Studios:
V. Chart 5: Self analysis based on Source: Startup Studio Study Deviation of types of Startup Studios:
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Argentina Australia Denemark Indonesia Israel Malaysia Netherlands Portugal Russia Senegal Singapoore South Korea Spain Switzerland Thailand Belgium China Japan Canada France South Africa Germany UK USA
Number of Stratup Studios Per Country
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VI. Chart 6: Self analysis based on Source: Startup Studio Study
Startup Studio Ranking based on funding of portfolio companies:
In order to examine the acceleration measures VS. Startup Studio, according to a study (Szigeti, 2015) on 51 Startup Studios and 212 of their portfolio companies: Startup Studios companies have raised $4B since 2008, and marked 14 exists of companies since 2012. Although the percent of exits from accelerators are assumed to be higher than exits from startups, it is an incomparable measure due to lack of
coherent data for 2015 exits from Startup Studios companies.
VII. Chart 7: Source: Startup Studio Study
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Build + Incubate + Invest
Build + Incubate Build + Invest Invest + Incubate Build Invest Incubate
42 While observing the portfolio companies market spread, we can observe a different diversification than the accelerators:
VIII. Chart 8: Source: Startup Studio Study
From the charts above it can be learned that startup studios enable and encourage more companies emerging from cultural and creative industries to thrive under the Studio umbrella than can be observed in accelerators pay of interest.
iv. Trends and Challenges:
To conclude, I will sum up my findings in the trends and challenges indicated: Trends:
A. The artist as a creative creator: artists in the current era have diverse abilities to practice and express their art, not only through the traditional format by definition (hence, a painter draws pictures; a musician composes
