Redbud Brands’ New $46 Million Financing Round Signals Soaring Interest In Startup Studio-Backed Food And Beverage Brands

Redbud Brands’ New $46 Million Financing Round Signals Soaring Interest In Startup Studio-Backed Food And Beverage Brands

Redbud Brands launched SunDaze, a ready-to-drink fermented cocktail company, in late 2021. From left ... [+] to right: Arthur Gallego, Cofounder & CEO SunDaze; Brian Goldberg, Founding Partner of Redbud Brands; John Ferrari, Operating Partner of Redbud Brands; and Juan Toledano, Cofounder SunDaze. Touting higher success rate and operational efficiency, coupled with vast networks of industry talents and capital providers that are typically difficult for first-time entrepreneurs to access, venture studios are attracting concept-stage consumer brands at an unprecedented rate. The venture studio or holding company model is not new to the technology world since the 1996 creation of Idealab, which claims it has created over 150 companies to-date with approximately 30% exiting via IPOs or acquisitions. This model essentially allows venture studios to partner with founders during the creation or incubation stage after validating their ideas through market research, and leverage their internal resources and partnerships to help them scale. Compared to traditional VC firms and accelerators, venture studios are more proactive in building brands, involved in startups' daily operations, in addition to providing capital funding. However, interest in venture studios from the consumer sector, including CPG-focused venture capitalists, is a recent, yet fast-growing phenomenon. The company, founded by