Unicorns were the yesterday's news, today it is all about being a Cockroach startup?
Author : Senior Writer at Chatur Ideas
Posted : one year ago
  • Unicorns-were-the-yesterday's-news-today-it-is-all-about-being-a-Cockroac-startup?

Make way for Cockroaches! This trend we are referring to is the reality that the startup industry is facing right now,  the year 2015 belonged to the unicorn startups, privately owned technology- driven startups that have reached a valuation mounting to $1billion or more. As they say, nothing is permanent, the year 2016 is definitely the year for Cockroach Startups.

So, What is a cockroach Startup?

A startup or a business that builds slowly and steadily from the get go, keeping a close eye on revenues and profits. Spending is kept in check so that it can weather any funding storm. Which is the exact contrast to a Unicorn startup which is characterised by superfast growth, fuelled by  the VC money.

International startups that are in the Unicorn Club are Uber, Oscar, Tranderwise, etc. And in India, we have Flipkart, Snapdeal and Olacabs, etc. As per the Industry experts, the main reason for the shift and unicorns being replaced by cockroaches is the investors concern over funding. For past several years, record low-interest rates were attracting more and more funds into venture capital, due to which startups in 2015 received comparatively easy funding. But the year 2016 hasn't been off to a good start in comparison with the last year. As a result, the Venture Capital Funding has taken a major hit. To add to the cause of low funding in the first quarter of 2016 is also due to key fundamental problems in business models of various Unicorn startups and their blind reliance on Venture capital money to fund the company's growth.

So, do you think you are a cockroach startup? Get in touch with us and stand a chance to be mentored by one of the India's strongest mentor panel.