Cockroach startups to swipe off the market


Unicorns and cockroaches create a sharp contrast. Unicorns are elegant, beautiful and unique. There are tons of fairy tales portraying unicorns as magnificent, almost divine, beings with magical powers.

Cockroaches, on the other hand, are quite the opposite of elegant and unique. They are everywhere, they are ugly, and other than Franz Kafka's "Metamorphosis," there are hardly any fiction works that even bother to tell their story.

But, despite all the shortcomings, cockroaches have one unique trait: They are durable. With a history of 320 million years as a species, they have a pretty good idea on how to survive. Due to their simple body structure and slower cell cycles, they can even endure 10 times the radiation a human can.

We do not know the exact body structure of a unicorn, since they don't exist. But judging from fairytales, and their metaphorical use in daily life, we can assume they are delicate beings that are easy to harm. One could probably say that what unicorns choose to call hell, a cockroach calls home.

This is also true for their metaphorical use in the startup world. Unicorn has been a buzzword over the last couple of years. According to Wikipedia, the term describing startups with over $1 billion in market valuation was coined in 2013 by venture capitalist Aileen Lee as a clear reference to the rarity of such companies. Since then, we've had "decacorns" for $10 billion startups, even "hectocorn" for a unicorn centuplicated.

Now we have "cockroaches." When one of the biggest tech unicorns, namely Powa Technologies, crashed hard last year, investors realized not all great ideas turn into money. So, they began searching for a new kind of startup. One that won't burn venture capital money to achieve lightning growth. One that won't scale first, and think about revenue later.

Eventually, this pursuit gave life to a new breed of startups: They are nothing like Uber or Dropbox. They keep their spending in check from the first day like a traditional SME. They focus on revenue rather than spending. They grow with a slow but steady pace. They are cockroach startups.