Startups · Unicorn

What are the risks of being a unicorn startup?

Himanshu Agrawal Marketing | Business Management | Customer Life Value Management | Business Analytic | Speaker

September 19th, 2016

Nowadays everyone glorifies the unicorn startup status but not a lot of people are discussing the downside of it and the issues that you have to deal with. What do you all think about the risks associated to reaching the unicorn status?

Ayelet Ph.D. Co-Founder & CEO Capsoole Inc.; Dr. Hirshfeld; Advisor @ Earn2Learn

September 20th, 2016

blockquote, div.yahoo_quoted { margin-left: 0 !important; border-left:1px #715FFA solid !important; padding-left:1ex !important; background-color:white !important; } It's a slippery slope  Sent from Yahoo Mail for iPhone

Rod Abbamonte Co Founder at STARTREK / @startupHunter / @startupWay / @CoFounderFound / @GOcapital / @startupClub / @lastminute

September 20th, 2016

What kind of risks are you talking about it?

Michael Barnathan

September 20th, 2016

The main risk with any large valuation is that you'll have to justify it by hitting corresponding metrics. If you don't, you'll take a down round. And I've heard that unicorns have signed up for some pretty aggressive liquidation preferences to obtain those valuations, so guess who pays when that happens? The founders.

More isn't always better when it comes to a valuation. You want something your business can realistically live up to.