In the world of business and entrepreneurship, the number of unicorns – companies valued at more than a billion dollars – has grown exponentially over the years. However, although they may be in the spotlight of many investors and have more famous brands, zebras – small startups with a sustainable model and solid fundamentals – are having more success in the long term.
Today, zebra companies are considered a safer and more reliable option, offering investors the chance to benefit from their resilience and long-term growth potential. Without much renown, they are often the key piece of a well-known brand; That is, they are part of the infrastructure underneath, in the backstage that makes things work.
- EXPLORING THE ADVANTAGES OF SMALL START-UPS IN THE BUSINESS WORLD
The concept of a unicorn has become increasingly popular in recent years, as more and more companies have achieved this feat.
In fact, in numbers until May 2023, according to the CBInsights Report, there are more than 1,200 companies that can be categorized as such. These companies have caught the attention of investors, and many of them are now household names.
Its mythological name was coined in 2013 by Aileen Lee, founder of Cowboy Ventures, to identify those organizations in the technology field that reached at least one billion dollars, even if they are not present on the stock market.
However, even though they are considered very successful companies, not all unicorns are the same. Many of these companies are burning cash and struggling to turn a profit. As a result, they may not be the best option for investors. This is where the zebras come in.
- WHAT IS A ZEBRA COMPANY?
A Zebra is a small startup with a sustainable and generally solid model. Unlike unicorns, zebras They’re not just focused on becoming the next billion-dollar company.. Instead, they focus on creating a long-term, sustainable business model with meaning and purpose.
And here appears the main aspirational and philosophical difference of zebra companies: their axis is a clear and transcendent purpose. They generally have leadership focused on values, with a view that contemplates the human internally and externally, beyond the economic and financial result.
Another difference between zebras and unicorns is their focus on profitability.
Zebras tend to focus more on generating shared benefits, while unicorns tend to focus on growth.
Zebras also promote a more transparent and consolidated business model, while unicorns usually depend on venture capital to finance their operations.
- WHY ZEBRAS OUTCOME UNICORNS
There are several reasons why zebras outperform unicorns in the long run. Let’s see:
🦓 One of the most important is that they focus more on profitability, so they have a better chance of generating cash flow, while unicorns often rely on venture capital to maintain their operations. This means that zebras are more likely to generate a long-term return on investment.
🦓 Another difference is its focus on sustainability. Zebras tend to focus more on creating a sustainable business model, while unicorns tend to focus on rapid growth. As a result, zebras are more likely to survive economic downturns and other challenges.
🦓 Finally, zebras are usually more resistant than unicorns. Zebras are generally smaller and more focused, while unicorns tend to be larger and more diversified. This is why they can survive better in complex times.
- SMALL ZEBRAS VERSUS BIG UNICORNS
In a volatile and totally uncertain world, small start-ups are proving to be more agile and capable of quickly adapting to market changes. This gives you a long-term competitive advantage.
They also tend to be more flexible in terms of staff and operations. It is so They manage to pivot quickly and adjust their strategies in response to changing circumstances.
At the same time, smaller companies are often able to attract top talent due to their smaller size and less hierarchical structure. In addition, connects business purpose with those of your stafffor which people usually embark with desire, motivation and enthusiasm in this type of projects and companies.
Generally, leadership is horizontal, and works collaboratively.
Finally, zebras have greater response speed to take advantage of opportunities as they arise. This gives them a competitive advantage in the market.
- 3 EXAMPLES OF SUCCESSFUL ZEBRAS 🎯
There are several examples of zebra companies that have achieved long-term success. One of the best known is Slacka communications platform that has grown to be worth more than $1 billion. Slack has a strong focus on profitability and has successfully scaled its operations to become a successful global company.
Another example is Atlassiana software development company that has grown to be worth more than $20 billion. In this case, it has a strong focus on profitability and has successfully adapted its business model to changing markets and rapid adaptability based on flexible models and modular teams depending on the situation and projects.
Finally, another example of a successful zebra is Zooma video conferencing platform that has been worth more than $50 billion at its lowest point. This zebra also has an approach focused on profitability, and is adapting, even today, to changing markets: it opens different service plans, expands the free offer and adds features in alliance with other companies, to provide a more complete experience (and more faster than any of the competition).
