This model interacts a little quirkily with the expected lifecycle of companies which take VC investment. (If you haven't raised $1X million from VCs, feel fre

This model interacts a little quirkily with the expected lifecycle of companies which take VC investment. (If you haven't raised $1X million from VCs, feel free to ignore what any VC would say about you.) There are a couple of clocks ticking. One is burn rate versus reserves, and having a portfolio strategy where you produce X flops to 1 hit and then cover your expenses does stop that clock. There are other clocks (+), and the studio model does not really have a pause button for them unless you're acquired for strategic reasons. + Prominent among them "How many days are left before nine months before the date at which the oldest VC fund from which took money expires?" There are unfortunate-for-the-entrepreneur consequences of any of those clocks running out, since right before the buzzer it will be suggested that they sell the company. At that point, the value of the portfolio amassed by the studio model gets evaluated, and unfortunately the value of most past-the-new-release-window studio-esque IP is very, very, very tiny compared to the value of e.g. a company with an existing base of 200,000 customers and permission to charge 220,000 credit cards next month. It is not necessarily the case that the sale will value the company higher than the investor's liquidation preferences. That is just one way under which an entrepreneur who lead a company generating profits every year could be told that their 30% stake in the company was valueless.