As rare as the mythical creature, the unicorn, successful business ventures termed as “unicorn startups” that made it to the over-a-billion value have been emerging in the recent decade. Their success stories are indeed worth-remembering, especially for investors and aspiring entrepreneurs who want to make it big in their respected industry. For asset management and offshore financial services firms like LOM Financial, such ventures may be important components of a well-diversified portfolio.
So what are the factors that helped unicorn start-ups build their billion-dollar companies? What did they do differently? For one, despite the high rate of failures when starting a business in the U.S., unicorn companies were once made of fearless and talented teams that have the gut and the motivation to stay afloat even in the deadliest waves battering business industry.
More importantly, the most successful companies were disruptors in the existing markets and innovators of new and flourishing markets. While they have the skills and the right attitude to succeed, the advantages of technology were the irreplaceable ingredients that completed the formula.
Airbnb, a unicorn that is worth at least $38 billion today, is a good example of how disrupting the traditional and creating an innovative and more convenient alternative through the help of technology can make a huge difference.
For these unicorn companies, it’s not just about putting together the right team of skilled and driven individuals, but it’s also about establishing a company focused on one particular mission that will guide them through the first stages of their ventures.
Toutiao, a Chinese unicorn start-up is one of the highest-valued companies today, offering information and data analyses services derived from recommendations using Artificial Intelligence technology.
While a consumer-facing strategy has put some unicorn companies to where they are right now, there are other entry points that entrepreneurs can focus on. Twilio, for instance, targeted other disruptors in the niche market like Netflix, Uber, and Lyft, and offered B2B technology services that helped them land their own place on the pedestal.