It was Aileen Lee of Cowboy Ventures who coined the term ‘unicorn.’ Now she has taken a fresh look: Welcome Back to the Unicorn Club, 10 Years Later. A lot changes in ten years, especially in tech.
As Lee observed, ten years ago, the majority of unicorns were consumer focused. Now, the pendulum has swung hard to enterprise, and the herd is about to be thinned – for now -, as many a so-called unicorn is a ‘papercorn.’ Capital efficiency has dropped precipitously, Silicon Valley is no longer the unicorn hub (“The Bay Area is still the largest unicorn pasture, but lost a lot of ground”). She also predicts that AI will be a superunicorn.
Facebook was the standout beast in 2013, but our question is, how good is a unicorn’s eyesight? One would think or at least hope that unicorns are visionaries in some way (preferably in a good way), but the two terms are hardly interchangeable. Apple co-founder Steve Jobs certainly was that square peg in the round hole who was crazy enough to think that he could change the world – in a good way – and he did. The iPod, the iPhone. The NeXt cube, that changed computers forever. Jobs was no doubt a visionary, and a design genius.Read More...
We’re under the weather this week. This is not a reference to the cold spell sweeping across the US: we’re literally down with a stomach flu, and the perfect opportunity to report American Dialect’s 2023 Word of the Year – “Enshittification,” as we feel like, well, need we spell it out?
The word “became popular in 2023 after it was used in a blog post by author Cory Doctorow, who used it to describe how digital platforms can become worse and worse. “Here is how platforms die: first, they are good to their users; then they abuse their users to make things better for their business customers; finally, they abuse those business customers to claw back all the value for themselves. Then, they die. I call this enshittification,” Doctorow wrote on his Pluralistic blog.”
The good news is, re this stomach bug, we will recover. What about those platforms? “Gen Z is crazy about a handful of online platforms including Twitch, Reddit, TikTok, Imgur, Unfold, Brat, NTWRK, and Lomotif,” according to Business Insider, while Later reports that YouTube is their online entertainment channel of choice, “and TikTok (68%) and Snapchat (67%) aren’t too far behind. Interestingly, the platform that has really skyrocketed in this group is BeReal, as according to zdnet, “On BeReal you cannot have followers. Similar to the earliest forms of social networking sites (remember AIM), on the app you have friends instead of followers and only these select groups of people can see your posts. This takes away the pressure of wanting to curate a perfect public image and brings back the fun of sharing content only with your friends.”Read More...
Almost all startups pivot at some point. This we know. Since many people consider a new year a new/clean slate as well and a good time to reflect on where you’ve been/where you’re going, we decided it’s a good time to talk about the pivot.
We recently hosted an investor at one of our Online Insights who mentioned a unicorn exit from one of their portfolio companies. We knew the founder. Very sharp guy who had majorly pivoted not long after said investor’s fund had invested in them. One of the partners had spoken at our Insights not long after the pivot and was livid: this was not what he had invested in.
Well, how often do investors mention that the ‘team’ is one of their top considerations when it comes to deciding to whom to write the check? Just a few short years following the pivot, the company had a serious unicorn exit. The founder also happened to be something of a subject matter expert, rethought the approach, did a major change of direction – and did we mention the company had a serious unicorn exit? Apologies, but we have learned from experience that one of the major always unnamed problems when it comes to why startups fail is that founders don’t listen.Read More...
