Unicorns, Lots of Unicorns
November 10, 2015
One of my two or three readers sent me a link described as a “Unicorn Club wall graphic.” I located this diagram, the product of an outfit called CB Insights, at this link. Here’s a tiny version of the list of unicorns artfully arrayed on a time line spanning 36 months:
The message of the graphic is the blur created with the jammed names and logos of companies in the Jan 2015 and later portion of the chart. Here’s a snippet:
The number of unicorns has increased. On the list are MarkLogic, an XML centric data management outfit, and BuzzFeed, the maker of listicles.
I find this graphic interesting. Many of the companies on the graphic are ones about which I know zero and probably never will; for example, Thumbtack and some about which I know a little bit like MarkLogic.
A couple of thoughts crossed my mind as I marveled at the number of big bets made in 2015; here are three:
- Quite a few investors have bet big money on outfits because there is a belief that these companies will make big revenues. Hope springs eternal, of course. Customers and sustainable revenue may be a more limited resource.
- Is the economy more robust than the information available to me suggests?
- The likelihood of froth seems high. Are there empty store fronts in your area? Are most businesses thriving?
The diagram suggests that there will be some financial excitement ahead. The question is, “What type of excitement?” An XML data management company? Lists of factoids?
The business of some of these outfits is raising money, not generating sustainable organic revenues. Unicorns like raising money. The revenue part is not so much fun to do. Thinking about revenues is more enjoyable and easier.
Stephen E Arnold, November 10, 2015
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One Response to “Unicorns, Lots of Unicorns”
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You should explain to your casual readers that the “Unicorn Club” is a term the investment media has coined for startups whose valuation may hit $1B. I am sure there are many on that graphic that may be DOA in terms of actually hitting that valuation though.