Do you know what a unicorn startup is? Ever heard of Betterfly? This article will explain it all to you! Keep reading.
After all, What is a Unicorn?
This is a fascinating name to be part of the financial market. This creature can represent a rarity, and in the financial market, it conceptualizes those startups that have a value of US$ 1 billion. After all, it is rare – or used to be – to find them.
This term was mentioned for the first time in 2013 in the article “Welcome to the unicorn club: learning from billion-dollar startups.” Author and investor Aileen Lee was the first person to use the term, and she curated the existence of 39 unicorn startups. Since then, investors and entrepreneurs have been highly discussing this topic.
Not So Rare Anymore
But the market has changed. Today, what used to be just a few startups, now has thousands of unicorns worldwide. According to CB Insights, there were 1,068 unicorn companies globally as of March 30, 2022. In 2021 alone, 519 of these privately held startups valued at $1 billion or more were “born,” as stated by Statista.
Even so, there is no straightforward recipe on how to become a unicorn. The problem is that some new entrepreneurs only focus on the idea of becoming a unicorn. You have to understand that there is no step by step to transform your small business into one worth 1 billion dollars.
It is a complex and rare journey, as the name suggests. Therefore, there is no way to turn a thousand into a million overnight. And to become a big company, you need to chase the suitable investments and create the connections and contacts that can propel you into the market.
Betterfly: Latin America’s first Unicorn
The Chilean unicorn Betterfly started its international expansion in Brazil after receiving US$ 60 million last year. Betterfly is structured as a public benefit corporation, which extends benefits to stakeholders such as communities and employees.
The startup operates in the insurance and employee benefits segment. In addition, Betterfly has a B2B2C platform with built-in insurance that integrates wellness, financial services and social impact.
What also categorizes a unicorn startup is innovation. Betterfly uses game mechanics and behavioral science to track and reward good habits with donations to partner NGOs and insurance coverage.
“We believe in the purpose and social impact as a value proposition. That’s why our business model is not just about profit”, says Eduardo Della Maggiora, founder and CEO of Betterfly for Forbes.
For him, the essence of Betterfly is in people and concern for the planet. “We want to scale the use of our platform to protect the future of 100 million people by 2025 and make a difference in their lives. That’s what moves us.”
Some international unicorns
As stated, there are thousands of unicorn companies in the world. Chinese AI and news and tech information platform Bytedance is the biggest of the bunch at a $140 billion valuation, followed by Elon Musk’s space transport company Space X ($100.3 billion). Chinese fashion retailer Shein is also one of the biggest globally ($100 billion).
By the way, we have an amazing article about Shein. Read here.
Other International Unicorns
- Airbnb (USA) — a platform that offers accommodation for holidays or tourism;
- Wish (USA) — e-commerce platform;
- Xiaomi (China) — company in the field of technology and manufacture of electronic products;
- Klarna (Sweden) – Fintech player;
- Canva (Australia) – Graphic design platform Canva;
- Checkout.com (UK) – Payment service.
Be Aware
Moreover, be careful when investing in unicorn startups. You must also be prepared to make mistakes a few times until finding an investment that brings a greater return than the money lost in wrong bets.
Indeed, keep an eye out for companies that are indeed unicorns. According to Forbes, the market contains fake unicorns, inflated ponies and unpredictable dragons.
Forbes recommends looking carefully at the places where the best unicorns are. The most fertile ground for U.S. unicorns is precisely where you’d expect it: Silicon Valley.
“Just 4 million people in the Bay Area produce as many unicorns as all of Europe combined. For all their efforts, no other market or region has managed to replicate Silicon Valley’s vibrant combination of brilliant brains, innovative tech and bold capital”, says Alex Lazovsky, Forbes Councils Member.
To Sum Up
Becoming a Unicorn is the consequence of excellent work and several other variables favorable to your business. Don’t direct all your efforts to suddely transform your company into a Unicorn.
In fact, it’s a great possibility but focus on giving your best and making sure that your service delivers value to your customer.
To sum up, be careful with investments. Do some in-depth unicorn research before investing in this. Research the market and make effective hits!
