The 5 Signals We Look For Before Spinning Out a Venture

Spinning out a new venture from a studio isn't just about internal excitement or a working prototype. At Ziplabs, we've learned—sometimes the hard way—that the real signals for spinout readiness are deeper, more nuanced, and often counterintuitive. Here's a look inside our process, the five signals we look for, and why they matter so much in the AI-native era.

The Myth of Internal Traction

It's easy to get swept up in the energy of a new idea. The team is excited, the demo is slick, and early users inside the studio are raving. But internal traction is not the same as market traction. We've seen projects that were beloved internally flop the moment they hit the real world. Why? Because the outside world is less forgiving, less invested, and far more distracted.

The decision to spin out a venture is one of the most consequential a studio can make. It's not just about resource allocation—it's about reputation, opportunity cost, and the careers of the founders who will take the leap. That's why we've developed a set of signals that go beyond the obvious. These are the patterns we look for, the questions we ask, and the red flags that make us pause.

Signal 1: Pull, Not Push

The first and most important signal is pull from the outside world. Are users, customers, or partners reaching out unprompted? Are they asking for access, offering to pay, or trying to hack their way into the product? True pull is unmistakable. It's the difference between chasing and being chased.

I remember a project where, after a quiet beta launch, we started getting emails from teams at Fortune 500 companies. They'd heard about the tool through word of mouth and wanted to pilot it. We hadn't even started outbound yet. That kind of pull is rare—and it's the clearest sign that a venture is ready to leave the nest.

Signal 2: Painkiller, Not Vitamin

Is the product solving a real, persistent pain? Or is it a nice-to-have? We look for evidence that users are building workflows around the product, not just dabbling. Are they integrating it into their daily routines? Are they complaining loudly when it breaks? The more painful the problem, the more likely the venture will survive the transition to the outside world.

Signal 3: Founder Obsession

Every successful spinout we've seen has had at least one founder who is obsessed—borderline unreasonable—about the problem. They're not just building a product; they're on a mission. They talk to users constantly, iterate relentlessly, and refuse to settle for "good enough." This kind of founder energy is infectious, and it's often the difference between a project that fizzles and one that flies.

Signal 4: Repeatable, Scalable Motion

Before spinning out, we look for evidence of a repeatable, scalable go-to-market motion. Can the team acquire users or customers in a way that isn't just luck or brute force? Is there a playbook that works beyond the studio's network? We want to see early signs of a growth engine, not just a one-off success.

Signal 5: Willingness to Pay (or Commit)

Finally, we look for real commitment from the market. This doesn't always mean revenue on day one, but it does mean some form of meaningful commitment—whether that's a signed letter of intent, a pilot agreement, or even just a user who's built a critical workflow around the product. The best signal is always money, but in some cases, deep engagement or public advocacy can be just as powerful.

A Quick Recap (Signals in Brief)

• Pull from the outside world (not just internal excitement)
• Solving a real, persistent pain (painkiller, not vitamin)
• Founder obsession and relentless user focus
• Evidence of a repeatable, scalable go-to-market motion
• Willingness to pay or deep commitment from users

The Human Side: Stories from the Studio

One of our most successful spinouts started as a side project. The founder was obsessed—he spent nights and weekends talking to users, shipping updates, and tracking every metric. The turning point came when a major customer offered to pay for an integration that wasn't even on the roadmap. That moment of pull changed everything. We knew it was time to spin out.

On the flip side, we've had projects that looked great on paper but never found real pull. The team was talented, the tech was impressive, but the market just didn't care enough. In those cases, the hardest (and best) decision was to kill the project before spinning out. It's painful, but it's better than launching a venture that's doomed to struggle.

Why These Signals Matter More Than Ever

In the AI-native era, the pace of innovation is relentless. It's easy to get caught up in the excitement of new technology, but the fundamentals haven't changed. The ventures that succeed are the ones that solve real problems, delight real users, and have founders who are willing to go the distance.

At Ziplabs, we use these five signals as our north star. They keep us honest, focused, and humble. They remind us that the goal isn't just to launch more ventures—it's to launch ventures that matter.

If you're building inside a studio, or thinking about spinning out, ask yourself: do you see these signals? If not, keep building, keep listening, and don't be afraid to kill your darlings. The right moment will come—and when it does, you'll know.