The world’s most successful startups have two characteristics in common
CEO Magazine | Anne Majumdar | Dec 26, 2022
A few key criteria define a decacorn, but what characteristics do they have in common? We take a look at what makes a winner in the world of startups.
- There are now 48 decacorns, according to Failory, including familiar brands like Canva, Byju’s and SpaceX. While they focus on wildly different areas, they all have their valuation in common.
- Meaningful path: Only truly original ideas can have disruptive power. Startups seeking a “quick flip” – doing something without taking the long view – are also on the wrong path, he adds. “If you’re just here for making money, then we’re the last ones to invest money”
- “That’s what we have to figure out in our conversations with founders – what is the drive? What is the motivation?”
- Startups who care more about their valuation or their customer typically come unstuck. Startups that focus on creating a great product that solves a valuable problem for a customer will be rewarded.
- It’s about being proactive rather than reactive – constantly trying new things, finding fresh revenue streams and tapping into issues “that really matter”.
- Disruption never happens from inside,” he warns, adding that companies like Google stay abreast of new trends and technologies by essentially incubating startups to continue innovating, and then synergizing these findings into their own business models.
See: Are you a Pig, Gazelle or Bear? Beyond Unicorns, Zoology of startups
- Global focus: By scaling globally, companies quickly spread geographically, which has a “multiplier effect” on an international scale. There are very few unicorns/decacorns that are not global.
- They usually leverage technology to support hypergrowth and scale – hence why unicorn status is disproportionately centered around software technology startups
- Meanwhile, the development of a “digital ecosystem of partners” can also boost a startup’s chances of success. They tap into external stakeholders with complementary capabilities for collaborative development of products, services and offerings, which have global appeal and market potential.
In America, when you fail, you come back, you do another startup, nobody blinks. But elsewhere, the risk appetite is low,” he says. “You must be prepared to go through anything, go to the wall, walk through fire. It’s about survival. It’s about longevity.”
Another perspective
Decacorns are privately-held startups that have achieved valuations of over $10 billion. Some factors that contribute to the success of these companies include:
Strong leadership and management: Decacorns are often led by visionary and experienced leaders who are able to navigate the challenges of growing a startup into a large, successful company.
Disruptive technology or innovative business model: Many decacorns have developed new technologies or business models that disrupt existing industries and create significant value for customers.
See: Successful Founders Weigh In: 10 Key Things to Do When Starting A New Venture
Ability to scale: Decacorns have been able to rapidly scale their operations and expand into new markets, often through a combination of organic growth and strategic acquisitions.
Strong financial performance: Decacorns have typically demonstrated strong financial performance, with revenues and profits growing at a rapid pace.
Strong investor support: Decacorns have often attracted significant investment from venture capital firms and other investors, which has provided the capital needed to fuel their growth.
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