If you have heard nothing about startups, the following sentence will make no sense to you:
“Every startup wants to be a unicorn that will reach the point of exit, but to do so, they have to find their angels and go through the painful process of accelerators.”
The explanation of this sentence, however, is rather simple.
Let’s start with the most mysterious one — a unicorn. In the world of startups, unicorns are highly unique and original products or services that are capable of winning the market. Their name is fitting: in legends, unicorns are extremely rare and unbelievably valuable. What’s more, there are fewer than 100 startup unicorns in the world (Uber and Airbnb, to name a couple), which makes them even more precious.
How can you turn your startup into a unicorn? There’s no one right answer. But we do know — your startup needs to be unique and interesting, not only for your target audience but also for your investors. Remember this: unicorns always experience exits.
If you think an exit is some kind of failure, you are wrong. An exit is the most desired result for any startup — it means that your business is no longer a startup and has begun to make a profit. As a rule, if a startup hits an exit, it also causes a boom within its industry. This industry becomes a hot niche, and more startups pop up, hoping they will attract funding and attention as well. Sometimes they do succeed, but their successes cannot be compared with the primary one — experienced by the company that managed to exit.
Exits are almost impossible without accelerators. These are communities created to speed up development and bring startups to the top of their industries. Accelerators provide management, design, MVP and, most importantly, finances. A startup gives a certain amount of their company’s shares to accelerators; in exchange, accelerators do their best to make these startups succeed. Accelerators help new companies find angels who will supply them with funding.
While startup angels do not have wings, they do have money. Without angels, no startup could get launched — Neither Snapchat nor Uber would exist. Angels are the first investors who donate their money into brand new startups; angels receive the highest dividends. Successful angels find startups that are more or less secure in terms of a refund.