The unicorn phenomenon may not be as golden as it appears, as a high number of startups have become unicorns in recent years and without real-time valuations, their true value is unknown, making the choice of investors based on value rather than just prestige and a high valuation crucial for a startup's success.
Summary:
Unicorns, the coveted tech startups valued at over $1 billion, may not be what they seem. Despite a current count of 1205 unicorns according to CB Insights, over 65% of these private companies have achieved unicorn status in the last two years alone, when valuation multiples were at an all-time high.
The reality, however, is that without real-time valuations, the actual number of unicorns could be much lower, with estimations putting it at less than 600. Founders beware, losing unicorn status can have serious consequences, including difficulty in fundraising and attracting top talent, loss of confidence from investors and the market, and decreased morale among employees.
The key takeaway for founders is to focus on what truly matters - value from investors, not just a high valuation. Make the smart choice and prioritize value over prestige.
Full Story: HERE (LinkedIn)
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Reference:
- https://www.linkedin.com/posts/maj-pawel_startups-valuations-unicorns-activity-7026459630495051776-NqR0/?utm_source=share&utm_medium=member_desktop
- https://www.cbinsights.com/research/unicorn-startup-market-map/
- https://www.forbes.com/sites/ryanholiday/2012/07/16/what-is-media-manipulation-a-definition-and-explanation/
- https://fff.peerboard.com/post/1021903756