DOCX

Entrepreneurial companies in the United States again The unicorn dilemma of who decides

By Howard Palmer,2015-02-13 16:12
8 views 0
Entrepreneurial companies in the United States again The unicorn dilemma of who decides

    Entrepreneurial companies in the United States

    again The unicorn dilemma of who decides?

    Only continuous innovation, entrepreneurial companies bring disruptive products, or develop a new market, is likely to break through, in the cracks of giant recur vigor.

    Under the winter capital, entrepreneurial companies in the United States is brewing a revolution storm.Many silicon valley companies worry about unicorns risk investors no longer follow-up funding, so are considering layoffs.The SMS application Tango recently been forced to cut 9%, shut down the electricity business Tango Shop.It is understood that the startup in the first half of last year completed a $280 million D round, alibaba investment of $215 million;Tango is therefore joined the unicorn club valued at $1 billion.

    After the company entered the stage of the unicorn, actually has become a medium-sized enterprises.Why Tango became a valuation of $1 billion, after the "unicorn", but difficulties?On stage is a startup heavier, only high finance to ensure the success rate;That is the enterprise growth cycle in a shortened.The startup can have a future?Solve the capital crisis after the will face what kind of situation again?

    The startup layoffs shrinking grain storage

    Since this year, science and technology, media is the most commonly cited an industry term called "unicorn".Every once in a while, there will be a related report, a company financing $100 million or $200 million, entered the unicorn company camps.Unicorn concepts derived from silicon valley, is valued at $1 billion Internet start-ups.

    In startup heavier s, however, $1 billion into the club does not represent the enterprise absolute safety, the crisis is still potential.A recent example is the Tango SMS application.A lot of people don't believe the joined "unicorn" soon to meet the "winter" of enterprise, but the fact is that the firm was forced to cut 9% of recently, shut down the electricity business TangoShop.

    Tango is just the latest one, just a month ago, another $1 billion valuation of silicon valley startup company also announced job cuts 47 people, and will be shut down three offices located in Taiwan, Singapore, and Moscow.In addition, the company has the function of the closed some operation not very well, such as used to record the menu of "Food" (the company Food).

    More tellingly, since this year, twitter, Flipgram, Snapchat valuation of $1 billion in silicon valley startups are successively experienced business trouble.Social media giant twitter announced it would cut up to 8% of the staff, is expected to save cash cost $10 million to $20 million;Photo sharing software Flipgram cut 20%;"Burn after reading" chat software Snapchat cut the original content department of posts.Unicorn's survival crisis thus became a hot topic recently.

    "Deep holes, wide accumulate grain", startup is through the "winter", resource integration, staff cuts.But after the "cold", is to keep their original market, or decline gradually, under the fierce competition depends on industry background, product strategy, revenue model, corporate governance, and many other factors.

    The unicorn is a double-edged sword

    Valuation of $1 billion why "unicorn" enterprises will be reduced to a "layoffs" grain storage?

    For internal factors, unicorn company early in the pattern of "free and upgrade" for hundreds of millions of users, after a $1 billion valuation of medium size, user growth is slowing, and began to seriously consider revenue problem.But they are at this stage the commercialization of the ability to drag the hind leg, giant admission free products increase their income is difficult, only the huge financing can ensure success rate.

    In the context of external factors, market environment change has helped the industry pattern through changes.On the one hand is pressure from giant.Amazon, Google, Facebook, was born at the beginning of the giant cracks are staying in.Facebook, for example, the rise of Facebook social market just started, when MySpace nor a giant.In contrast, the unicorn company in Google,Microsoft, apple, Facebook has yet to attach importance to the market segments to find room for growth, whereas these market segments in the giant market expand the scope of the original, so they has had the strength of the giant after a larger oppression.

    Unicorn company, on the other hand, in close to a year or two groups of appear, means that a wave of mobile Internet business has entered the end.After four or five years of cultivation, the mobile Internet entrepreneurs have to harvest season, some mobile Internet companies have even beyond the concept of the unicorn, valued at billions of dollars or even billions of dollars.

    However, a blessing in disguise.From the perspective of the entrepreneur does not want to see anyone company valuations being downgraded after each round of financing, but on the positive side, found the problem as early as possible,

    to face the problem and trying to adjust, the total is better than the day of the fiasco of more pain.Almost every Internet giant was a unicorn, Google, Facebook and amazon, Uber, abound.They have undergone a rapid growth from small startups to medium unicorn company sublimation to Internet giant.So, layoffs, better able to make strategic adjustment and business planning start-up, may be able to usher in a new round of rapid development.

    Break then stand, innovation as the only way to start-up companies in China

    At home, as the "Internet +" promotion, business became a popular word, and developed into a new level.British accounting and consultancy UHY International's latest report shows that China become "a pole" of innovation boom, every day there are 4000 startups.

    Break then stand, entrepreneurial companies in the United States suffered enough to cause the current status quo of the emergence of the contemplation of the start-up.Overcapacity, blindly follow suit,China InternetWeb startups, how to grasp and considerations?

    Chinese Internet field with infinite possibilities, a fabulous success also in stimulating the entrepreneurs want to be the next lucky dog, but entrepreneurs must have a clear cognition on the situation.Especially the BAT monopoly most Internet business segment of the moment, business is becoming more and more difficult.O2O start-ups fail agitation also gives entrepreneurs to wake up with a start: checking the colour also has good business planning of that day of, go with the flow will only be eliminated.

    Since this year, both in silicon valley and China, facing the risk of growth companies tend to return to the rational investment.Compared with the past two years, the Internet environment is becoming more serious.Especially those who have not profitable industry, such as video website, increasing pressure by the investors, every investor has a relatively clear income requirements, China's Internet startup current is living in the cracks of technology giants.Only continuous innovation, entrepreneurial companies bring disruptive products, or develop a new market, is likely to break through, in the cracks of giant recur vigor.

Report this document

For any questions or suggestions please email
cust-service@docsford.com