How to Be a Unicorn Startup
Unicorn startups are highly respected in the business world, and rightfully so. As of 2022, there are only 554 unicorns worldwide, and to become a unicorn startup, your company needs to reach an investor valuation of $1 billion or more. Today, unicorns aren’t nearly as uncommon as they were a few years ago. But that doesn’t mean it has become any easier for new startups to achieve the coveted status.
Just about now you must be wondering, what does it take for my startup to be a unicorn? Lucky for you, I filtered a ton of research down to the core nuggets that founders need to remember when growing their own startup.
Are you ready? Let’s dig into the biggest lessons I took away from my research:
Unicorns are disruptive with groundbreaking innovations: Unicorns have brought a disruption in the field they belong to. While Uber changed the way people commuted, Airbnb is known to have changed the way people planned their way while traveling. The innovative strategies are what defined their unicorn status.
Unicorns are tech-driven: Most unicorn companies have a business model run on a higher level of technology. Almost 87% of the unicorn products are software, 7% of them being hardware, while the other 6% of them being based on products and services.
Unicorns are consumer-centric: Their main goal is to simplify and be a part of consumers’ day-to-day life; over 62% of unicorns are B2C companies. Another key ingredient is keeping their products and services affordable. Unicorns offer a strong value proposition or a promise of how and why the product will bring value to customers. Having a strong value proposition will improve both your sales and marketing efforts.
Unicorns are efficient: The concept of building Minimum Viable Product (MVPs) comes from a business approach that’s known as the Lean Startup. This approach dictates that startups can maximize efficiency by repeatedly testing and adjusting their MVPs based on user feedback. Since MVPs are only equipped with the “must-have” features, it’s more cost-effective to build and allows you to pivot without sacrificing a fully made product.
Unicorns are growth-driven: Unicorns employ strategies that allow them to scale at exponential rates. With a clear vision in mind, these unicorn companies achieved growth by validating their marketing and sales channels with local testing, then quickly replicating the successful strategies in other locations.
Unicorns are privately-owned: Many known unicorn companies are nowadays privately-owned; this increases their valuation when an established company invests in them. There are more than 361 private companies around the world valued at over $1 billion. India has 16 of these companies, that are taking up 4% of the overall share.
Now what do most unicorn startups have in common?
A simple solution to an existing problem
A strong and highly marketable value proposition
A clear vision for the future of the company and its offering, and a plan for how to get there
Distinct positioning, even if they’re not the first-to-market
A pipeline full of new leads, including potential beta testers and customers
An easy-to-use UX that allows users to quickly adopt the product
The word ‘unicorn’ has come a long way from just being a mythological creature to a regular feature in business discussions. Today, unicorn companies have attained recognition and made a place for themselves in the market. While its not necessary that every unicorn will end up being a successful startup, the point is, you mustn’t stop hustling after touching a milestone.
The core concept is not to make unicorn startups but to create something that takes away the human effort by making the world a little better. A strong foundation and a team that supports growth are the footholds you need to scale your business and make it reach its maximum potential.
