The playbook for startups in Silicon Valley was comprehensive for years. You could raise money, get more users, and never turn it down. And then, you could conclude the business model part.
Eventually, you could pick up that billion-plus valuation and you have made it. However, the sheen was already off the overvalued-company-with-a-scary-balance-sheet by the outset of 2020.
Vineet Jain, CEO of Egnyte, has long been boosting for a new breed of a startup – Stallions – firms that might not be charming as compared to its consumer users but proves creditable fiscal prudence.
Presently, the COVID-19 crisis is dominating the economic system and threatening the foreseeable future. But the need for stallions is that much more putative. Ultimately, this has completely flipped the knowledge of ours about building a tech startup. Though the situation is unpredictable, few investors are investing bravely. So, here are the reasons.
Possibly delay raising money
Though lean startup is the best method to grow, a very small number of startups exist as lean startups. The culture of massive venture capital backing can be difficult to resist.
Egnyte was flashing constantly consistent growth in 2013. This was the time when its investors have driven them to raise more money, but they denied it. Everyone found their decision bizarre. But the fact was they were not ready, they still had not fully looked upon their business model.
It is true that if you are working out on your own, the market will point out you. More money can help but it can make things messier.
Do not fix your business model on someone else’s cent
Yes. This is heterodox. Many cooing for risks and pivot and then pivot. But right now, startups need inceptive operations with a capital sound mindset, figuring out to get positive cash flow as soon as possible. So, this is the best method for your startup’s real need identification and the path to sustainability.
Stretch your market when you have maxed out
Many times we have seen unicorns launch into new areas – news products or market – before they have been adept in their core competencies. But this directs towards distractions and sluggish responses and errors.
Find out the best talent
Creating an environment of inclusion is a major boon. Companies with multiple talented workforces outperform their rivalries and signify an overwhelming data. Geographic diversity is one overlooked consideration. Selecting candidates from Silicon Valley or established tech hubs like Austin or New York may accidentally close you off to the best talent.
Egnyte did the best thing that it bought key remote hires and open offices in Poland, Raleigh, and Spokane. Elongating the land has helped them to bring in talents with a range of backgrounds and experiences and that has pitched into the success of Egnyte.
Moreover, a silver lining of quarantine has been showing how productive and active their remote teams really are. This is an encouraging sign that remote hiring is unlocking a whole new world for today’s startups.
Work upon acquisition
Acquisitions are challenging such as compatibility issues, looming culture problems, and more distractions. Even the strongest and the most financially sound mega corporations or conglomerates found the same. But there are many unicorns that buy companies because they can afford. This situation can trip you off and bring new burden if acquisition doesn’t add exponentially to your own business.
Putting IPO on the side
It is going to be a bit even for the definite of things in Startup land. Focus on building your company completely and the rest things will follow.
This is somewhat hard to hear, and even harder to grasp. Yet, we at some point realise unicorns aren’t real but stallions are. They are beasts with stronger muscles. They direct the blinder and make them run. Therefore, they can move faster further than other animals, with a purpose.