In the startup world, the Lion is NOT the King.

The startup zoo keeps growing... From the beginnings as a Chick, after hatching from the incubator phase, a startup will be surrounded by:

 Squirrels (Investor Family). An active, agile, and fast animal, as well as intelligent and forward-thinking.

These are People from the environment and the trust of the founder(s), who decide to invest small amounts in their Project.

Coyotes (Accelerator). A very astute and dynamic animal very adaptable in various places.

Entities that advise, accompany (mentoring), and provide what is called seed capital in the takeoff phase.

Eagles (Business Angels). Related to value and strength, they stand out for their sociable character, intelligence, and adaptability.

Private investors who act as a kind of patron; they have experience and guide the entrepreneur to make the business profitable for both parties. 

Lions (Venture Capital). They convey wisdom, focus, courage, and strength.

VC Funds or Risk Capital Companies provide capital to startups and companies with high growth potential and high levels of risk in exchange for a percentage of the company.

But no, in the startup world, the Lion is not the King.

For a long time, the undisputed King was the UNICORN, the paradigm of dreams come true.

In a short time and with few resources thanks to technology, a privately-held company could be worth more than a million dollars, reaching multimillion-dollar financing rounds. The burst of some of them that lacked a solid and real foundation began to dissipate the smoke, and the startups cockroach models based more on resilience than on speed were valued.

With the Covid-19 crisis, another animal enters the scene sharing the reign with the Unicorn.

THE CAMEL represents the qualities necessary to survive in the current context. It is accustomed to enduring very harsh conditions and managing resources very well. In this sense, startups that want to survive in the desert will have to, without giving up scalability, work with low fixed costs and control expenses and income to be real and resilient businesses capable of resisting and adapting quickly, just like the Camel. In the desert, one who runs too fast and depletes their resources is unlikely to reach the end of the road.

Without losing the startup essence, we find a change in business philosophy away from hypergrowth. Long-term sustainability is sought, seeking a balance between profitability and growth.

It is not about giving up external financing; in fact, the figure of the Squirrels and the Coyotes is fundamental in the first phase of creation and start-up of the activity where revenues are zero or scarce.

Once a certain market share is reached, Eagles and Lions usually appear. But a Camel startup will use venture capital only to seize real growth opportunities, that is, they will use it to grow, not to subsist.

At INVERSA, we share that Camel philosophy. And who knows,... maybe over time the Camel becomes a Unicorn.