It might sound strange today, but tech start-ups were called just "start-ups" initially. Sometimes venture investors referred to them as "portfolio companies", while customers called them "tech companies", but "start-up" remained to be the basic term. In 2013, start-ups began their Animorphs journey, and that continues. Several animal names are used as terms and phrases in the start-up world on a regular basis. Investors analyse the types of start-ups and then decide whether they want to invest or not.
Here are a few terms for start-ups that have been in the buzz in recent times.
Unicorns
A privately held start-up company that has a valuation of more than $1 billion is known as a "unicorn start-up." The phrase was coined by venture entrepreneur Aileen Lee, who used the legendary animal to symbolize the statistical rarity of such profitable enterprises.
Start-ups that become unicorns are frequently inventive, innovative businesses that operate in a range of industries, including technology, e-commerce, finance, healthcare, and more. They frequently grow quickly and draw substantial investments from venture capitalists and other investors. Start-ups like BYJU's, Swiggy, OYO Rooms, Dream11, Razorpay, and Ola Cabs are a few examples of well-known unicorns.
Zebras
Scholz and a group of start-up founders coined the word "Zebra" in a Medium post titled "Zebras fix what unicorns break" in 2017. This kind of start-up straddles the line between the commercial and non-commercial paradigms. Growth is as vital to zebras as it is to unicorns, but it is expressed not in growth rates per se, but rather in the influence made on the environment: development of local communities, improvement in employee happiness levels, encouragement of cultural changes, and so on. For zebra start-ups, everything is black and white. While income and earnings are crucial, so too is a company's reason for existence: to solve worthwhile issues and produce long-term value.
Camels
This is the most intriguing start-up category in the current situation. Many analysts believe that the "age of unicorns" is now history and that the "age of camels" has taken its place. These start-ups know how to survive in a tough desert environment. They are not unduly reliant on huge funding. They create value with or without venture capital. They efficiently control the burn rate (how quickly a company is spending its cash reserves to cover overhead costs) by adopting a long-term strategy and are prepared for any downturn that could happen at any time.
For example, The Globe and Mail, a Canadian newspaper, published about the Canadian-led start-up Jane Software. How the company has adopted the camel style from begining and is now thriving.
Gazelles
According to the Hurun report, "Gazelle" is a start-up that was established after 2000 and has the potential to become a unicorn in three years. According to the ASK Private Wealth Hurun India Future Unicorn Index 2023, there are several gazelles in the index. Among them are the electric vehicle (EV) start-up Ather Energy, the rapid commerce start-up Zepto, and the education technology start-up Leap Scholar.
Cheetahs
According to the Hurun Report, a "Cheetah" start-up is one that was established after 2000 and has the potential to become a unicorn in the following five years. Cheetahs are the fastest terrestrial mammals over short distances and have long strides. They are agile at fast speeds, with steps that are six to seven meters long and four strides completed every second.
Pepperfry, Dunzo, InsuranceDekho, Pixis, and FinTech start-up Clear are some of the companies that have been listed in the ASK Private Wealth Hurun India Future Unicorn Index 2023.
Cockroaches
The term "cockroach start-ups" refers to companies that are extremely resilient and flexible, allowing them to thrive and endure adverse circumstances. Cockroaches are renowned for their ability to endure challenging circumstances. Start-ups like Cockroaches can survive downturns in the economy, shifts in the competitive landscape, and other difficulties that could prove fatal to less flexible businesses.
An example of a successful cockroach start-up is Zerodha, a Bangalore-based discount brokerage firm. It is an illustration of a successful cockroach start-up. The company was formed in 2010 and has had a bumpy ride, but it has always prioritized building value and trust for the user over rapid development. Zerodha has been profitable since its inception and has never sought outside funding. Another such company is Zoho, a business that offers cloud-based business software and is situated in Chennai.
