Unicorn means Corporate Failure
A Unicorn is a startup with a market capitalization reaching one billion dollars. The market is looking at them as the new grail as there is a promise for big value. The Unicorn are developing innovative solutions for all kind of businesses looking to disrupt them, or at least to change the game.
But for Duncan Logan, CEO at RocketSpace, a co-working space for tech startups in San Francisco the story is totally different. Duncan has a fabulous track records incubating success stories like Uber, Spotify or Leap Motion. His view with another angle is very sharp, makes lot of sense but is also at the opposite way of common thinking.
For Duncan, Unicorn shouldn’t exist anymore! Why this strong statement?
If it happens again, it will be a proof of a Corporate Failure!
What does he mean by corporate failure? What is the relationship with corporations?
Simple answer, if your company wants to innovate you have 2 choices:
Or you use your local R&D and try to disrupt your market. If you are lucky to develop fast enough before someone else implement the same kind of innovation before you.
Or you have a look for a startup developing the technology that will help you to launch your new innovation before anyone else. It means that you’re going to acquire this startup before your competitors.
The idea is that your R&D is now located in the Silicon Valley! You will be able to have a go to market much faster and ensure your company growth. If all companies were using this way to develop, startups with innovative technologies will be acquired before they become a Unicorn. And if they finally become a Unicorn, it proves that established companies on this specific market didn’t have the vision to see what was happening with new Tech companies. They will miss the opportunity to get the technology before their competitors and for sure will suffer from the disruptive innovation.
So “Unicorn means Corporate Failure” looks a pretty good statement