A Half-Solved Initiative

BUILT
TO HOLD

Venture Design Lab

Convening companies, entrepreneurs, impact investors, and researchers to advance a fundamentally different approach to building ventures — one where actual profits, not paper valuations, define success.

1–5%
Likelihood a lean startup reaches sustained profitability
10+
Years before a path to profitability typically emerges
40%
Average annual losses as a share of revenue
In Partnership With
Half-Solved
Cornell University CSGE
INCOSE

The Lean Startup Playbook Wasn't Built for This

Lean startup was designed for venture capital funds that spread bets across hundreds of ventures and profit by exiting the few that grow fast — even while deeply unprofitable. That model works for funds. It does not work for companies building ventures to hold.

The celebrated VC wins tell the story: Uber accumulated $33 billion in losses by 2023. Snapchat, $12.6 billion. Dropbox, $3.5 billion. These were spectacular fund returns — and they would have been catastrophic corporate disasters.

The time value of money compounds the damage. At a 30% hurdle rate, a $1M investment that takes ten years to pay back costs $12.8 million. By year twenty, the bill reaches $189 million.

"For companies building ventures to hold, cash flow profitability must be treated as a design requirement from the start — not something stumbled upon at some point in the future."
1–5%
Lean startup profitability rate
10+
Years to profitability path
40%
Avg annual losses/revenue
The FIT Startup Methodology

Designed for Robustness. Built for Resilience.

FIT Startup approaches the high uncertainty of venture creation the way engineers do — by anticipating stress and designing solutions that absorb it. Developed and tested over a decade with corporate incubators at Barclays, Pearson, BMW, Disney, and Mars.

Step 01
Diagnose
Surface an invisible profit barrier lurking in the existing business form factor
01
Step 02
Deduct
Apply science and research to develop a strategy to overcome the barrier
02
Step 03
Productize
Shape the product form factor to channel the strategy and create operational synergies
03
Step 04
Simulate
Build a financial model, test the margin of safety, surface and resolve high-risk operations
04
F
Financial Margin of Safety
The distance between the low-point estimate of customers' willingness to pay and the high-point estimate of total unit costs. The higher the margin, the greater the venture's robustness.
I
Invisible Profit Barriers
Deep structural barriers to profitability hidden behind every disruptive market — holding down customer value and pushing up costs. The real reason a viable commercial market doesn't already exist.
T
Testable Train of Logic
A rigorous, science-backed chain of reasoning that prevents fuzzy thinking and replaces costly build-and-test experiments with first-principles analysis — before a single dollar is committed.

A Faulty Architecture No Business Model Can Fix

When innovators creating new markets are customer-led, they unwittingly import a faulty core business architecture. A core business architecture constrains every business model within it, setting a cost floor and a value ceiling.

Robust Architecture → Value Surplus
Value Ceiling > Cost Floor

Many profitable business models are possible. The market is viable and enduring. Every lasting market has a robust core business architecture at its foundation.

Faulty Architecture → Value Deficit
Cost Floor > Value Ceiling

Even the most optimal business model cannot generate profit. Ventures experiment endlessly, falling short not from poor execution but from a structurally broken foundation.

The solution is not better lean experimentation. It is engineering the right architecture before going to market — applying systems engineering to design the product form factor so it simultaneously solves all structural requirements.

Rent the Runway followed dress-rental logic from tuxedo rentals. Zebra Fuel followed pizza delivery logic. Both inherited architectures with boundary conditions that made profitability structurally impossible.

Three functions the product form factor must drive:
Catalyze Value Surplus
Normalize Customer Routine
Dictate the Competitive Landscape
How the Lab Works

Three Ways to Engage

01 · Working Groups
Collaborative Research
Knowledge Creation

Lab members collaborate to answer hard questions by applying the FIT Startup methodology. The goal: create new tools and frameworks that push the methodology forward, then share them openly with the broader venture-building community.

02 · Seminars & Workshops
Knowledge Exchange
Learning & Discourse

Curated sessions bringing together leading practitioners, investors, and researchers to explore the frontiers of profitable venture design — from the first principles of core business architecture to frontier applications of FIT Startup.

03 · Venture Training Studio
Hands-On Application
Applied Practice

Companies, entrepreneurs, and investors learn the FIT Startup methodology through direct, applied practice — working on real ventures with real stakes. The Studio is where the methodology becomes muscle memory.

Who Joins the Lab

For Those Who Build to Last

Corporations
Entrepreneurs
Impact Investors
Researchers
Deep & Hard Tech
Social Ventures

The Lab is built for those who understand that the metrics that matter most aren't set by investors at the next funding round — they're set by customers, markets, and the fundamentals of a working business. Whether you're a corporate innovator, an impact investor whose mission rests on enduring profitability, an entrepreneur building without a VC lifeline, or a researcher advancing the science of market creation — if real profits are your benchmark, this is your community.

Ready to Build to Hold?

Whether you are redesigning how you think about venture creation, seeking ventures built on genuine financial returns, or advancing the science of profitable market creation — there is a place for you in the Lab.

Erik Simanis
Managing Director · Built to Hold Venture Design Lab
b2h@half-solved.com
Membership
Working Groups
Upcoming Seminars
Venture Training Studio