Unicorn Startups: Problems & Opportunities

What is a Unicorn Startup?

In the venture capital sector, a unicorn is defined as any startup with a valuation of $1 billion or more. Aileen Lee, the founder of Cowboy Ventures, created the phrase when she referred to the 39 startups with a total valuation of more than $1 billion as unicorns. Initially, the word underlined the rarity of such enterprises. Since then, the description of a unicorn startup has not altered. The number of unicorns, on the other hand, has increased.

Can Only a Startup be a Unicorn?

The term ‘Unicorn’ is only granted to ‘startups’ with a one billion dollars valuation. In contrast, a Decacorn (super Unicorn) is a startup with a more than $10 billion valuation. There is a unique phrase for Unicorn startups based out of Canada. It’s ‘narwhal.’ Thus, any Canadian startup firm having a valuation of $1 billion is referred to as a narwhal. Examples of Narwhal businesses include Hootsuite and Wattpad.

What Problems are Startups Facing?

1. Real Competition

The competitive atmosphere keeps startup companies on their toes since there is no room for error. Both B2B and B2C firms are constantly subjected to intense competition. To thrive in this fiercely competitive marketplace that includes both traditional and online firms, entrepreneurs must leverage startup tactics to obtain much-needed visibility amid the clusters of ever-challenging and increasing enterprises.

2. Unrealistic Expectations

Expectations accompany success. Startups encounter difficulties when they create “unrealistic expectations” after a period of rapid success. The one thing to remember is that expectations never cease, and accomplishment is fleeting; therefore, startups must translate their true expectations. The key to success is sustainability which further demands ongoing efforts. To thrive in a competitive business world, entrepreneurs must have high but managed expectations while keeping in mind the available resources, the level of growth potential, and other market criteria.

3. Financial Assets

Finance accessibility is crucial for companies and poses a serious problem when raising enough money. Startups can seek money from family members, friends, loans, grants, angel investment, venture capitalists, crowdfunding, and other sources. As the company grows, the amount of funds required keeps growing. Scaling a firm also needs a timely infusion of finance. As a result, efficient financial management is vital for startup success.

4. Generating Revenue

Several businesses need more revenue generation as the company expands. Also, as operations expand, expenditures rise with lower revenues, requiring startups to focus on the funding issue and diluting the emphasis on the essentials of the company. As a result, revenue creation is important while necessitating effective control of the burn rate, which is the pace at which startups consume money in the early stages. The challenge lies not only in raising enough money but also in expanding and maintaining growth.

5. Members of the Team

Startups often begin with a team of trustworthy people with complementary skill sets. Typically, each team member has expertise in a certain area of operations. The first necessity is to put up a solid team; failing to do so can sometimes lead to the end of the startup.

6. Support of Infrastructure

Innovation, science, and (IT) technology parks, business development centers, and other support mechanisms play important roles in the life cycle of startups. The possibility of failure rises in the absence of such support systems.

7. Increasing Market Awareness

Startups sometimes fail owing to their inability to pay attention to market limits. In addition, due to the novelty of the product, the environment for a startup is typically tougher than for an established company. The issue is more challenging for a new product because the firm must create everything from the beginning.

Opportunities for Startups

Regardless of the hurdles and problems businesses face, Indian marketplaces provide many opportunities to discover solutions specific to a startup’s needs. A handful of the options considered for startup consideration are listed below.

1. The size of India’s Population

India’s population is a significant advantage to the country. Any startup will benefit significantly from this unique demographic advantage. However, various infrastructure challenges and the bottom-of-the-pyramid market would present an enormous opportunity for businesses.

2. Challenges Mean Opportunities

India is confronting several concerns, such as population growth, poverty, sewage, water management, and excessive plastic use, all of which must be addressed in novel ways. According to Kant, Silicon Valley has the fewest difficulties but the greatest number of inventions. In contrast, India has a high number of issues with a low number of solutions, which creates opportunities for businesses with creative solutions.

3. Competitors

Entrepreneurs may reap the most rewards from the competition! A healthy competition promotes creative growth while learning unique skills. According to Kant, state competition would lead to more companies since it will foster talent and provide financial support for the startup ecosystem. In addition, a large network of investors helps firms expand in a competitive environment.

Conclusion

The term “unicorn” has progressed from a legendary figure to a common topic in business and financial talks. Today, unicorn businesses have established themselves in the market and gained recognition. That being said, not every Unicorn will become a successful startup. However, the premise is that no startup should cease working after reaching a certain milestone.

Our Global Impression

Hear What Our Clients Are Saying

Client testimonials

We are very happy with the team's flexibility with the fact that they always deliver the tasks on time

Trigma Solutions developed a website for a content outsourcing company. The team built the project management site from scratch, providing both front- and backend development. Trigma Solutions provides project management tools to ensure a smooth workflow. The team is reliable, attentive, and knowledgeable. PAUL AGABIN CEO, Agabin Interactive (Manila, Philippines)

They are cooperative, hardworking, and really imaginative.

Thanks to Trigma’s efforts, the client was able to develop modules and troubleshoot their services. The team’s superb organizational skills and initiative allowed the project to become a success. Overall, end users give positive and satisfactory feedback on the project. PARK MIN HO VP of Operation, AI Dashcam Manufacturer (Seoul, Korea)

They were quick to understand what we needed and delivered it.

They were able to deliver a high-functioning site because of their transparent responsiveness and outstanding customer support. The new platform built by Trigma Solutions exceeded the internal stakeholders’ expectations. As a result, they plan to continue collaborations on future projects. HEATHER J. SUAREZ Founder, StallionMexSearch (Jacksonville, Florida)

They have managed everything properly.

Trigma Solutions executed a successful project that’s seen high levels of user engagement. While there were some obstacles related to COVID-19, the team managed the workflow well. They’ve secured future work with the client for further app development. GOWRI SHANKAR Account Manager, Digitally Squared PR & News (Karnataka, India)

Their sheer level of skill and ‘can do‘ attitude stood out to me.

The productive discussions we’ve had with Trigma Solutions have made our specs better and ultimately improved the software. Great Team and Value for money work done RICHKO

These guys are problem solver and they are pretty fast at it

The team we worked with at Trigma was so calm in dealing with the integration hurdles they faced while connecting to our master distribution system that we nicknamed them the .. ‘Problem solver’ KATHERINE BONELLO