A small startup studio fund can get crammed down if and when future rounds are needed. Some innovative methods to protect the fund's interest without sabotaging future funding would be useful to have.
By definition, a studio will have a lot more ownership then most investors. Because of the complicated cap-tables of studio companies, many, if not most VCs avoid investing in such companies. Rather then attempting to figure out how to minimize dilution, it's better for studios to focus on spinning out venture scale businesses addressing large markets that can attract follow on financings from downstream VCs despite their cap-tables.
