The Unicorn Club — Not Only Luck

Only 39 US startups in the last decade have a billion dollar or greater valuation, in both private and public markets. That’s the news that ran the rounds last week out of TechCrunch (check out the interesting charts in that article).

When we started our business, many so-called “advisers” said we needed to be targeting a billion dollar startup or else we should find something else to do. What ridiculous advice.

Only 39 in the US in an entire decade!

It’s almost silly to even talk about those 39 companies. They are anomalies. They are so far out there that you can’t realistically attempt to replicate their success.

In my opinion, it’s much better to understand how the vast majority of successful entrepreneurs succeed. There are enough relatable startup role models who have emulate-able and replicate-able approaches to startup success. Startup success is not only about luck.

As an analogy, you don’t have to shoot for the Hall of Fame of a top professional sports league to be in better shape than 99% of everyone else. You just need to work super hard, be smart, and apply the right understanding. Some of it is how you’re built. Most of it is your determination.

I understand the benefit of looking to the best for inspiration. I just don’t believe in targeting fool’s gold and prefer more deterministic and principled approaches to building great startups.

What are your thoughts on the Unicorn Club? Do you dream about being a unicorn?

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