Venture capitalists are known for spotting and investing in promising upstarts, but an alternative approach is growing in popularity: incubating.

Why it matters: With startup investments pricier and competition stiffer, some investors are setting up startup studios or incubating companies — a trend that's expected to continue accelerating.

The big picture: The recent public listings of companies like Snowflake and Hims have put incubation and startup studios back in the spotlight. READ MORE