This is not a fairytale : uncertainties faced by unicorn companies

Abstract

The ‘unicorn’ phenomenon has been changing the startup industry during the past few years in tremendous ways as the amount of these private companies valued over one billion dollars has been increasing rapidly since the term was launched in 2013. As their amount has been increasing, the knowledge about how these unicorn companies’ function has become more comprehensive, and the startup world has come even closer to people. However, big rises do not come without big falls, and that is why this thesis concentrates on identifying the uncertainties and problems these unicorn companies are facing. This study has been created by interviewing experts on the field of startups and unicorns, which leads the reader to find the magic behind the valuation, economical bubbles and many other issues that are affecting unicorn companies in the present world. The private economy has achieved a trend position, which makes the startup industry and its success something people are willing to strive for. The hot question is: which companies survive through all this and what is their secret? In order to offer a full experience of this study, the reader will be taken down the path to understand some basic theories that are related to unicorn companies. Some issues like the Network effect are crucial factors that have been affecting companies becoming unicorns for a long time, and that is why this kind of issues have been covered in this study, too. Also, the relationship between unicorn companies and Born Globals is addressed, and questions like ‘Is a unicorn company always a Born Global?’ are answered during this research. The presentation of these theories brings the reader closer to the topic of finding out what are the exact stumbling blocks unicorns face and possibly, how to avoid them. Take a glance of what you should know about unicorns before considering them to be enormous, unbeatable companies. Find ways to block the trouble while making a startup journey that is aiming high, and keep in mind, that if something seems too good to be true, it probably is not. All of this and the reasons behind it you will learn when opening the cover of this research. Have fun.