When to spin in vs. spin out
By Sneha Reddy
Some ideas start inside the studio and stay. Others need their own cap table early. Our framework for deciding which path fits.
Not every product in the portfolio needs to become a standalone company on day one. Some ideas benefit from staying close to shared infra, shared talent, and studio capital until product-market fit is obvious.
We spin out when three conditions align: the product has independent revenue traction, the founding team wants dedicated equity and board structure, and the venture no longer depends on studio-only resources to ship.
Staying inside the studio is not a consolation prize. Several of our strongest products remain portfolio companies indefinitely — they leverage shared systems better than they would as isolated startups.
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