Forget about Unicorn Startups. Investors are Seeking for Camels now..

istock

Dealing with a Crisis vs Dealing with Multipule Crises

In his book Alex offers a different way of looking how crisis times affect Startups. The book was written following several years of research, which included interviews and examinations of thousands of companies and investors (from Delhi to Detroit). Alex has compared startups in emerging markets in the face of failures. Companies that go through “The prosperous world” type of crises, verses “real” crises in unstable reality, which occurs multiple time in a course of a company, at unstable economies .

Unicorn vs Camel — The basic facts

To explain the book’s conclusions and differences between the two types of companies, I’ll give the following example — while horses (and “unicorns” are actually “enlightened” horses) consume an average of 50–70 liters of water a day. A camel can live 5–7 days without drinking any water, at all. Moreover, the amazing fact is, when a camel is being able to drink again, it can drink only 100 liters of water before it can keep on going to the next point. The water of course, symbolizes the life.

The Silicon Valley Unicorn Challenge

As mentioned, Alex’ book was launched at a time when many articles which were published claimed that Silicon Valley is ending its historic role as a global innovation leader, and that its failure to deal with the current Covid-19 crisis, proves that it is no longer a global role model. A factual survey conducted by the layoffs.fyi website shows that most the 50,000 layoffs in Silicon Valley, came from unprofitable Unicorn companies. Despite of the layoffs, the investors of those Unicorn companies, were required to give them an immediate funding to support their run rate for the following months.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Avihai (Avi) Michaeli

​Start-up’s M&A and Growth Investment Banking/ Innovation Scouting for CVC/Blogger. website: https://mergerandacquisition.co/