The startup world is like a zoo, full of different animals with their own unique traits. From unicorns to zebras, these critters represent the many ways a startup can succeed. But with so many new terms popping up, it can be hard to keep track of who’s who in the zoo. Don’t worry, we’ve got you covered! That’s also exciting for me. In this post, we’ll take a fun and playful look at the different startup ‘species’ and what makes them special. Let’s dive in!
1. The Unicorn🦄
In the startup world, a unicorn is a rare and special beast – a privately held business worth over $1 billion valuation! The term was first used by venture capitalist Aileen Lee in 2013, and back then, there were only 39 of these magical creatures in the wild. But now, unicorns are popping up all over the place, spreading their sparkle and success wherever they go. According to CB Insights, today we have 1225 active unicorns without considering exited ones. Not bad, huh?
2. The Dragon 🐲
In the startup world, a dragon is a fierce and powerful beast with a valuation of $12 billion or more, net of venture funding. Some famous dragons you might have heard of include Epic Games and Instacart. But wait, there’s more than one type of dragon! In 2014, TechCrunch defined a dragon as a startup that returned an entire fund – a feat four times as rare as becoming a unicorn. And according to Livemint, a dragon can also be a startup that raises over $1 billion from investors in a single round. So many dragons, so little time! At least we will remember two definitions😂
3. The centaur 🧑🏼🦲+ 🐴
Centaurs aren’t just mythical beings with the body of a horse and the torso of a human. In the startup universe, Centaur is a cloud-based company galloping towards success with $100 million in annual recurring revenue. These companies have found their stride with a great product-market fit and lots of happy, paying customers. They’re more durable than some hotshot unicorns that might fizzle out when their product hits the market (or worse, implode like Theranos).
According to research by Bessemer Venture Partners, there are only about 160 of these majestic creatures in the wild, making them seven times rarer than unicorns. One famous centaur you might have heard of is Calendly – they’re really nailing the whole scheduling thing.
4. The Camel 🐪
When we think of camels, probably we all picture a desert animal with a hump on its back. There is a secret power. These animals can survive for weeks without water and are ready to travel long distances.
As we already understood, startups don’t have access to the same resources and connections as their Silicon Valley counterparts, but they’re still able to survive and thrive in the harsh conditions of their environment.
Just like their animal namesake, camel startups have a long-term outlook and are built for endurance. They seek balanced growth and have a diversified business model, which helps them keep moving even when the going gets tough. While other startups might falter in these conditions, camels not only survive but thrive. They’re the ultimate startup survivors. Respect for Camels!
5. The Pegasus 🐎+💸
Winged horse – Pegasus, is a company that’s soaring to new heights on the strength of its profits. Coined by serial entrepreneur Jason Calacanis, a Pegasus startup bypasses multiple rounds of funding and grows the old-fashioned way. It’s a company that’s so profitable it can spread its wings and fly without relying on multiple rounds of funding.
Here’s the blueprint for becoming a Pegasus:
Start with a small, modestly paid team that produces an extraordinary product.
Focus on the four most important things: team, product, customer feedback, and growth.
Charge from day one and reinvest those profits to fuel your growth.
Aim to triple your revenue year-over-year. With this approach, you’ll be flying high in no time!”
6. The Zebra🦓
Zebra companies aren’t just black and white – they’re also all about balance. These startups are focused on both making a profit and making a positive impact on society. They have what’s known as a ‘double bottom line,’ which means they measure their success not just in dollars, but also in the good they do.
But that’s not the only way zebras stand out from the herd. These companies are known for sticking together and supporting each other, just like their animal namesakes. Instead of competing tooth and hoof, zebra companies cooperate to create something greater than the sum of their parts. It’s a different approach than Unicorns to building a successful startup, and it shows that cooperation can be just as powerful as competition. Some examples of Zebra startups could be Patreon and Bandcamp.
7. The Pony 🐎
As we see there are many alternatives to Unicorns, so Ponies are as seen from the name are small unicorns.
A minicorn is a startup with a valuation of over $1 million. These companies are relatively new to the game, but they have some valuation that indicates their potential to become a unicorn in the future .
A soonicorn, also known as “soon to be a unicorn”, is a startup that has the potential to enter the unicorn club soon. These startups are often backed by angel investors or financial speculators based on future projections or apparent valuations.
As you see other startup ‘species’ like decacorns and hectocorns, but the line between startup and huge corporation can get blurry with these high valuations. It’s a topic of debate whether these companies still qualify as startups or if they’ve grown into something else entirely.
And that’s a wrap on our tour of the startup zoo! We’ve explored the different ‘species’ of startups and what makes each one unique. I hope this information helps you on your journey to building your dream startup. If you have any questions or comments, don’t hesitate to share them. Good luck with finding and founding your startup!✨
Hey, special one, thank you for reading. Have a nice day!😊