Unicorn startups – startups with a value of over 1 billion USD, are considered one of the goals of many young entrepreneurs. However, becoming a unicorn startup is not easy. This article will introduce you to some of the characteristics and core factors that help a startup become a Unicorn.

What is Unicorn startup?

In the business world, unicorn startup is a term used to refer to private startups with a market capitalization of $1 billion or more. The term was coined in 2013 by venture capitalist Aileen Lee, choosing the mythical animal unicorn to represent the statistical rarity of such successful projects.

Unicorn companies often grow from creative ideas and utilize advanced technological techniques, often related to the internet, information technology, healthcare, or emerging technology fields. Unicorn startups often operate in high-risk environments and have rapid growth.

Core elements help Startup become a Unicorn

The success of a unicorn startup is not easy. To reach the $1 billion milestone, startups need to overcome many challenges and face many risks. However, if they possess the following core elements, startups will have a greater chance of becoming a unicorn:

Breakthrough idea

A startup needs to have a new, creative and different business idea compared to its competitors. This idea must solve a real customer problem, or create a new need for the market. For example, Uber, Airbnb or Netflix are all startups with groundbreaking ideas in their field.

Excellent founding team

A startup cannot succeed based on ideas alone. What’s more important is the founding team, the people who have the ability to make the idea a reality. An excellent founding team must have high technical skills, experience, vision and passion. They must also know how to attract and retain talent, build corporate culture, and communicate with stakeholders.

Great product

A startup needs to have a high quality product or service that brings value to customers and creates a difference compared to other products on the market. This product must be designed according to lean startup principles, which means continuously testing, gathering feedback and improving to fit customer needs. A great product will help Startup create competitive advantage and maintain customer loyalty.

Fast growth

A startup needs to be able to expand its market and increase revenue quickly to prove its potential. To do this, Startups need to have an effective marketing strategy and know how to use appropriate communication and distribution channels to target customers. Startups also need to have a sustainable business model that can be profitable and maintain long-term growth.

What are the characteristics of Unicorn Startup companies?

What is a tech unicorn? This is a term that refers to private technology startups with a market capitalization of $1 billion or more. So, what are the characteristics of Unicorn Startup companies? Here are some common points we can notice:

Clear vision and appropriate strategy

Unicorn startup companies not only pursue the goal of rapid growth, but also have a broad and far-sighted vision to solve core social and market problems. They also have effective strategies to execute that vision, by leveraging resources, connections and opportunities.

Be able to innovate and adapt

Unicorn startup companies are always ready to welcome changes and new trends in the business environment. They constantly research, test and improve their products and services, to bring the highest value to customers and users. They are also flexible in adjusting their business models, work processes and company culture, to suit external factors.

Has an excellent staff

Unicorn startup companies are attractive to talented people in their field. They attract and retain people with high skills, knowledge and creativity. They also create a positive working environment, encouraging collaboration, communication and sharing among members. They also attach importance to personnel training and development, to improve the capacity and productivity of the team.

Support from stakeholders

Unicorn startup companies not only rely on their own bravery, but also have support from stakeholders, such as investors, customers, partners, communities and governments. They know how to build sustainable and trustworthy relationships with these parties, to gain capital, market share, reputation and favorable policies for their business activities.

Unicorn startup’s influence on the market

Unicorn startup can bring many positive effects to the market, including:

• Promoting innovation: Unicorn startups often develop from creative ideas, promoting innovation in the economy. Unicorn startups often offer new products or services, solve real problems, or bring new value to users.
• Enhance competition: Unicorn startups often offer new products or services, creating healthy competition in the market. This healthy competition will motivate other businesses to improve their products or services, benefiting consumers.
• Creating jobs: Unicorn startups are often large-scale and need a lot of human resources, creating many jobs for workers.
• Attracting investment: The success of unicorn startups will attract more investment capital into the startup market, creating conditions for other startups to develop.

Unicorn startup brings many benefits but also poses challenges for traditional businesses, causing fierce competition, sometimes disturbing the market and the law. If tech unicorns cannot overcome these risks, they could fail and lead to negative market impacts.

Some prominent unicorn companies in Vietnam and around the world

In the world, there are many famous technology unicorns, including:

• Airbnb – online house and room rental platform.
• Uber – online car calling application.
• Stripe – online payment company.
• Zoom – online video conferencing platform.
• Pinterest – online image sharing platform.
• Palantir – an information technology company providing data analysis solutions…

In Vietnam, the number of technology unicorns is increasing, demonstrating the strong development of the technology startup ecosystem. Some typical Vietnamese unicorn companies include:

• VNG is a leading information technology company in Vietnam, providing products and services such as Zalo, Zing, VNG Game…
• Momo is a leading mobile payment application in Vietnam.
• VNPAY is a leading electronic payment company in Vietnam.

Unicorn startup is a symbol of success in the field of startups. Becoming a unicorn is a challenging goal, but also full of potential. Startups need to clearly define their goals and have a specific action plan to increase their chances of achieving this goal.