Let's Build Zebras, Not Unicorns: How and Why the Zebra Wins
In the current start-up and investor climate, unicorns are considered the one and only holy grail. Why is this so? Many start-up founders aspire to become unicorn companies as the idea of being disruptive, of finding the next life-changing solution, of getting big fast, of becoming the next Facebook or Uber is very appealing.
But unicorn companies are exceptionally rare, much like the mythical creatures they're named after, and only have a zero to nothing success rate. Not only does this lead to a lot of broken dreams, attempts to build unicorns consume a lot of time, effort and resources without much impact. Is this sustainable? Can we do things differently?
Yes! The Zebra model is about creating companies that grow steadily and sustainably (much like the Doughnut Economy theory) whilst turning a profit and improving society.
What is a unicorn company?
Unicorns are fast-growing start-ups with a value of over $1 billion that are venture capitalist backed and haven't undergone an initial public offering (IPO) yet. They focus on exponential growth, disrupting markets with the next ground-breaking innovative solution, and being the "Big Man" in control. In other words, unicorns are an exponential outcome of the American Dream and the wet dream of many entrepreneurs.
The harsh truth is that it's impossible for everyone to become a unicorn. Although the idea of becoming the next Airbnb or SpaceX is inspiring, the reality is quite different. Less than 10% turn a profit and 90% just fail. Besides burning money, time and resources, striving to become a unicorn causes many to lose sight of small niche problems.
Defining the zebra
Zebras are smaller tech enabled (not necessarily tech focused) companies that focus on both profitability and improving society. They choose sustainable growth and reject the venture capitalist investment model, instead choosing alternative funding methods that are often smarter and more sustainable since they have a lower initial investment capital.
As a smaller company, zebras conduct people business and are more down to earth. They are built by average people with a passion that they're driving forward, intent on creating products or services with a real impact on niche problems and underserved markets. They observe market trends and adapt to the demands of consumers, providing real value for users rather than investors.
The difference between unicorns and zebras
What makes zebras and unicorns different from each other? It's not the method, funding or people, but the "why".
Unicorn companies are driven by big venture capitalists who want returns on their investments and IPOs are the endgame. Zebra companies are built by people who want to make a positive difference for the herd: they strive to provide real value for users rather than investors and won't sacrifice social impact for personal profit. That's why they're called zebras, their black and white stripes represent duality between profitability and social impact.
How and why being a zebra pays off
Rather than focusing on exponential growth, Zebras are about shared prosperity for society. They are herd animals – they come in a group and stick together – and being in a team pays off.
Zebras co-create, share and ensure that the products or services they build won't undershoot the social foundation or break through the ecological ceiling. At the end of the day, the fact that they can match their social and economic goals makes zebras the true winners.
Zebras are paving the way into new economic models that are more sustainable and can offer a broader positive impact. Unicorns will be your cup of tea if you're all about capital gain and taking enormous risks. But if you want to make a real positive change, then please be a zebra and come form a herd with us. Together we can help you to build your very own zebra.
