Founder Stories: Building a Venture Studio to Help Fashion Brands Scale
Co-founded by Malte Kamp Videbæk, Thorbjørn Rønje and Nicolai Rasmussen, Twelve50Five is a venture studio dedicated to helping fashion and lifestyle brands reach their full potential. We spoke to Malte about his transition from corporate life to entrepreneurship, and how Twelve50Five is reshaping the way fashion startups are supported and scaled.
You have co-founded multiple startups over time. How did you become a founder? Was starting a business something you always wanted to do?
Interestingly, becoming a founder wasn't part of my original career plan. I started in the corporate world, but over time, I realized there was a mismatch between corporate life and my natural working style.
What really drives me is being hands-on and seeing ideas come to life quickly. In larger organizations, you're often confined to a specific role, dealing with layers of complexity that can slow down processes. I just found myself craving the ability to build things from scratch and move at a faster pace.
That's what ultimately drew me to startups. I wanted an environment where I could see the direct impact of my work, make quick decisions, and build something meaningful from the ground up. It wasn't so much about wanting to be a founder specifically – it was about finding the right environment where I could work in a way that energised me.
What has been one of the biggest learnings on your journey as a founder?
The reality of building a business is that it's chaotic. There's always something 'on fire,' and one of my biggest learnings has been developing the judgment to know which fires need immediate attention and which ones can wait. Learning to prioritise effectively isn't just about managing tasks – it's about protecting your company's future.
But beyond the tactical skills, I've learned that resilience is arguably a founder's most valuable asset. There will be days when you feel overwhelmed or demotivated, and pushing through those moments is what separates successful ventures from those that don't make it.
What's made the biggest difference in building this resilience is having the right support system. From colleagues who share your vision to friends and family who keep you grounded – these relationships are invaluable. They've not only helped me navigate the day-to-day challenges but also reminded me that while the founder's journey can feel lonely, you don't have to face it alone.
You also co-founded Twelve50Five, a venture studio focused on fashion startups. How did the idea for Twelve50Five come about?
Twelve50Five started at an inflection point in my life. After years of working intense hours at the expense of family time, I took a step back to reevaluate. During this period, my long-time friend Thorbjorn and I finally acted on something we'd discussed for years – building something meaningful together.
The concept emerged naturally from our complementary backgrounds: my experience in fashion and Thorbjorn's expertise in startup investment. We saw an opportunity to create something different from traditional investment models – a venture studio that truly understands the unique challenges of fashion and lifestyle startups.
Our vision goes beyond typical investment. As a venture studio, we're actively involved in our founders' journeys, sharing expertise, providing strategic guidance, and offering hands-on support. It's about being the partner we wish we'd had when building our own ventures – one that provides not just capital, but also the knowledge and support needed to help fashion founders realise their full potential.
What challenges have you been facing on this journey of building and growing a venture studio?
Building a venture studio comes with its own unique set of challenges, but the most interesting one has been managing the delicate balance between support and autonomy.
Our mission is to help founders succeed, but success means more than just solving immediate problems. When I personally get involved in projects, I've noticed how easily founders can become dependent on that expertise. While it might feel efficient in the short term, it can actually hinder their long-term growth.
To address this, we've developed a collaborative approach where founders maintain ownership of their projects, even when we're actively involved. They lead, we guide. This ensures they're building critical skills and knowledge along the way, rather than just receiving solutions. It's slower sometimes, but it's this approach that sets founders up for sustainable, long-term success.
One of the businesses you have invested in is VINNY’s. Can you tell us a bit more about that?
VINNY's, a Copenhagen-based premium footwear brand specialising in loafers, holds a special place in our portfolio. My history with the brand actually predates the launch of our venture studio – I first met the founder, Virgil, more than a decade ago and was immediately struck by his charismatic personality. When he decided to start his own brand in 2019, he reached out to bounce ideas and I knew this guy was on to something great.
Years later, when we launched Twelve50Five, reconnecting with Virgil and VINNY's felt natural. The brand's vision and Virgil's drive aligned perfectly with what we were looking for. Since investing, we've worked closely with the VINNY's team, supporting their growth journey in various capacities.
The brand's trajectory has been remarkable. They've not only established themselves in the premium footwear space but have gained significant cultural cachet – even catching the attention of Justin Bieber, who's now wearing their loafers. It's a testament to how far the right product, combined with strategic support, can go.
Reflecting back on your founder journey, what piece of advice would you want to give first-time fashion founders looking to start their own business?
First, be authentic. As a first-time founder, it's easy to feel pressure to project a certain image, but your authenticity is what will truly connect with consumers. Remember that your unique perspective and genuine passion for what you're building are your greatest differentiators in a crowded market.
Second, build the right team around you. While tight budgets can make founders hesitate to delegate, knowing when to get help is crucial. You can't excel at everything – and shouldn't try to. Whether it's bringing in advisors or leveraging your network, reaching out for support allows you to focus on areas where you truly add value.
The key is recognising that seeking help isn't a weakness – it's a strategic decision that lets you concentrate on what you do best.
FAQs
All the answers you need for all the questions you’ve got.
(But also TL;DR)
How should a startup business prepare its budget?
To prepare a budget for your startup, begin by listing all potential expenses you anticipate in starting and operating your business. Next, organise these expenses into categories. After that, estimate your monthly revenue and calculate the total costs required to start and run your business.
What are the key steps to creating an effective budget?
Step 1: Determine and track your income sources.
Step 2: Make a list of your cost. Include both fixed and variable costs.
Step 3: Set achievable financial goals.
Step 4: Develop a plan to meet those goals.
Step 5: Put everything together to build your budget.
Step 6: Regularly review and revise your forecast to ensure it remains effective.
What does capital budgeting entail for a startup?
Capital budgeting for a startup involves allocating a set amount of funds for specific purposes, such as purchasing new equipment or expanding business operations. This process is crucial as it supports making strategic investments that are expected to yield long-term benefits for the startup.
FAQs
All the answers you need for all the questions you’ve got.
(But also TL;DR)
How can a startup forecast its cash flow?
To forecast cash flow for a startup, follow these steps:
Step 1: Create a sales forecast by estimating the revenue your products or services will generate over the forecast period.
Step 2: Develop a profit and loss forecast to understand your expected expenses and income.
Step 3: Prepare your cash flow forecast, which involves calculating expected cash inflows and outflows. This can often be done for longer-term by using assumptions around payment terms to forecast a Balance Sheet, and using the movements in Balance Sheet and Net Profit/Loss to calculate the cashflow.
Step 4: Consider ways of improving cash flow by improving your invoicing methods, considering short-term borrowing, and negotiate better payment terms to manage cash flow effectively.
What is the most accurate method to forecast cash flow?
The most accurate method for forecasting cash flow in the short-term is the direct method, which utilises actual cash flow data. In contrast, the indirect method is better suited for longer term forecasting using projected balance sheet movements and income statements to estimate future cash flows.
How is cash flow calculated?
Cash flow is calculated by deducting cash outflows from cash inflows over a specific period. This calculation alongside forecasts of future cash flow helps determine if there is sufficient money available to sustain business.
How do you project cash flow over three years?
To project cash flow over a three-year period, undertake the following steps:
Step 1: Collect historical financial data.
Step 2: Identify all expected cash inflows, which could include revenue, investment, grant income, etc.
Step 3: Estimate all anticipated cash outflows including expenses, suppliers that need to be paid, investments into assets, debt repayments, etc.
Step 4: Calculate the net cash flow by subtracting outflows from inflows.
Step 5: Consider your cash reserves and explore financing options if needed.
Step 6: Regularly review and adjust your projections to ensure accuracy and relevance.
FAQs
All the answers you need for all the questions you’ve got.
(But also TL;DR)
When should a startup consider hiring a CFO?
A startup should think about hiring a Chief Financial Officer (CFO) when it begins to experience rapid growth, finds it challenging to manage finances, or needs to navigate complex investment scenarios. A seasoned financial professional can provide the necessary expertise to handle these challenges effectively.
What are the indicators that my business might need CFO support?
You might need to hire a CFO or consider outsourcing this role if you notice any of the following signs: a decrease in gross profit margins despite increasing revenue, uncontrolled business growth, lack of cash reserves despite having a financially successful year, or a halt in business growth.
Does my startup really need a full-time CFO?
Recruiting a full-time CFO is an expensive hire. Given budget constraints and the need to prove the viability of your business idea, founders will often need to prioritise investing into building and commercialising their product. That's where CFO services for startups are a cost-effective solution for founders looking to take their financial management to the next level.
