A broken ecosystem

We have witnessed firsthand that the traditional startup ecosystem is fundamentally broken. For years, Silicon Valley chased hypergrowth and “unicorn” valuations at any cost. The result? An industry defined by extreme odds. Less than 1 in 10 startups provides a positive return to its investors.

One symptom of this broken model is the growing disconnect between ****valuations and real outcomes. Over the past decade, venture funding poured fuel on a boom that inflated over a thousand unicorns. Yet, very few have converted paper valuations into real returns. The unicorn era that once promised endless growth has revealed itself to be deeply unsustainable; exposing misaligned incentives where blitzscaling and lofty valuations were prized over sustainable business fundamentals. The system incentivized pursuing scale and hype over resilience and real product-market fit. We believe these broken dynamics are a clear sign that the old playbook has run its course. It’s time for a fundamental shift in how we build startups.

The rise of “Autonomous Ventures”

Driven by breakthroughs in AI; we are witnessing the rise “autonomous businesses.” These are ventures designed to leverage AI as a core advantage in how they operate, innovate, and scale. AI co-pilots and automation can handle a huge share of tasks. Small teams can now achieve what once required armies of employees.

It’s enabling faster innovation cycles and iteration. Today, we can prototype, test, and refine ideas far more efficient. With Sqratch, we aim to lay the the groundwork of this new venture class, today.

AI at the heart of our operational model

We believe that embracing AI at the heart of our operational model isn’t just a tech upgrade, it’s the key to prioritize doing more with less. Ventures built this way can be more scalable, capital-efficient, and defensible from day one. The biggest risk would be to continue with business-as-usual. Therefore, we choose a different path. We’re proving, one venture at a time, that there is a better way to build.

We invite founders, investors, and tech leaders to join us in building this future. Together, we can build new era of ventures. One where bold ideas truly have the best chance to transform into lasting, impactful companies..

A broken ecosystem
We have witnessed firsthand that the traditional startup ecosystem is fundamentally broken. For years, Silicon Valley chased hypergrowth and “unicorn” valuations at any cost. The result? An industry defined by extreme odds and inefficiency.

One symptom of this broken model is the growing disconnect between ****valuations and real outcomes. Over the past decade, venture funding poured fuel on a boom that inflated over a thousand unicorns. Yet, very few have converted paper valuations into real returns. The unicorn era that once promised endless growth has revealed itself to be deeply unsustainable; exposing misaligned incentives where blitzscaling and lofty valuations were prized over sustainable business fundamentals. The cracks showed, in hindsight, many of the unicorns never had sustainable unit economics or defensible moats. The system incentivized pursuing scale and hype over resilience and real product-market fit. We believe these broken dynamics are a clear sign that the old playbook has run its course. It’s time for a fundamental shift in how we build startups


The rise of “Autonomous Ventures”
Driven by breakthroughs in AI; we are witnessing the rise “autonomous businesses.” These are ventures designed to leverage AI as a core advantage in how they operate, innovate, and scale. AI co-pilots and automation can handle a huge share of tasks. Small teams can now achieve what once required armies of employees.

It’s enabling faster innovation cycles and iteration. Today, we can prototype, test, and refine ideas far more efficient. With Sqratch, we aim to lay the the groundwork of this new venture class, today.


AI at the heart of our operational model
We believe that embracing AI at the heart of our operational model isn’t just a tech upgrade, it’s the key to prioritize doing more with less. Our belief is that ventures built in this way can be more scalable, capital-efficient, and defensible from day one. The biggest risk would be to continue with business-as-usual. Therefore, we choose a different path. We’re proving, one venture at a time, that there is a better way to build.

We invite founders, investors, and tech leaders to join us in building this future. Together, we can build new era of ventures. One where bold ideas truly have the best chance to transform into lasting, impactful companies.

© Sqratch Ventures. 2025