Creative Capital recognises the potential for creative expertise to drive exponential business growth. Thus, creative expertise of the requisite grade, becomes an asset worthy of barter for equity or for other forms of value that can offer exponential returns. Creative Capital is a genre of sweat equity (Sounds much more refined doesn’t it), however we’re talking premium, pivotal, ‘money can’t buy’ expertise, from teams of proven leaders in their field that early stage companies would find it impossible to assemble.
A Creative Capital Studio is a hybrid of a creative studio and a venture capital firm, where creative capital (aka expertise) is distributed to early stage technology companies rather than venture capital (money). The studio is home to the aforementioned expert-practitioners, operating either as Creative GPs (General Partners) working full-time with the studio, or as Creative LPs (Limited Partners) who contribute their expertise on a project-by-project basis whilst continuing in outside roles.
What are the advantages of the model?
When you engage a Creative Capital Studio you gain access to an unprecedented pool of talent across the fields of design, engineering, people and culture. The studio itself is funded, allowing it to engage on an long-term, equity-for-services, venture basis. That means you can be sure that everyone’s incentives are aligned as the studio becomes both an investor in your business and a partner in your mission.
For Startups, a Creative Capital Studio provides access to hard-to-get industry expertise to help take your product or team to its 1.0 or 2.0. This leaves not only the output, but also the processes and systems in place to ensure self-sufficiency and investment round readiness.
For VC firms, a Creative Capital Studio de-risks your portfolio companies by helping them with their most critical needs across product, people & culture. This is in essence the pure ‘value add’ that differentiates you from the herd in a world where capital has become the ultimate commodity.
For Creative Industry Experts, a Creative Capital Studio provides access to a new creative economy for you to leverage your expertise, transact your own creative capital, collaborate with peers, and surface new opportunities and deal flow. That plus you’re helping build a future facing creative economy for your tribe.
If you want to go deeper on the topic, the original blueprint for the Creative Capital Studio model can be found here in ‘State Of The Digital Nation 2020’.