|
Unicorns: 🦄
Unicorn companies are fast growing startups valued at US$1 billion. They typically have not undergone an IPO yet. As of CB Insights’ June 2022 report, there are ~1,170 unicorns globally. Examples: Bytedance (TikTok), SpaceX, SHEIN & Stripe. But, like the mythical creature, investors expect Unicorns to give magical results. They use the “Get Big Fast” (GBF) strategy. Expand quickly through big investments, slash prices and beat smaller competitors. They want to monopolise the market. However, this strategy is not easy and not sustainable.
Zebras: 🦓
The key difference to Zebras is being realistic. They don’t get the flashy headlines. 📰✨ Zebra companies aim to solve real problems and fill a demand in the market, rather than focus on disruption. Zebras tend to be profitable, lean, sustainable and impact the society. The Zebra business model also collaborates more with others compared to Unicorns. Patreon is a good example as they help content creators run a subscription service. Another one is Kheyti Farmers, they build eco & modular greenhouses that produce 7x more food and 90% less water.
Striving to be a Unicorn isn’t easy, that’s why their mythical. WeWork and Quibi are notable Unicorn disasters in recent years as investors were giving too much money to unsustainable business models. And with the recession, unicorns are laying off people.
Magic Sparkles are outdated, Stripes are in season baby! Aim to be the realistic Zebra instead and join the herd!
|
