In 2017, we showed that 57 startups were able to achieve unicorn status – a rare designation that is reserved only for privately-held startups valued at $1 billion or more.
While this number may seem high, unicorns are still quite the rarity.
In the U.S. alone, there are currently 19,550 venture-backed startups vying for those same massive valuations. At the same time, it’s been estimated that each new startup only has a 0.00006% chance of becoming a billion dollar company.
How to Improve Those Odds
No one ever said that joining the ranks of unicorns would be easy, but there is some good news for aspiring founders.
Today’s infographic, which comes to us from FounderKit, looks at traits of existing unicorns – and analyzing this wealth of data might help entrepreneurs in shaping their own companies for future success.
Put together with information from Fortune and Crunchbase, this infographic gives us some clues as to how game-changing unicorns have been built in the past.
While it’s certainly not a prescription for future success, it does provide a blueprint for what’s needed to improve your chances of beating the odds.
Playing the Red Team
If you’re an entrepreneur with billion dollar dreams, take a close look at the categories that best resemble your startup.
For example, if your model depends on leasing hardware to the energy sector as a major revenue source, you should note that the odds are mostly against you. For starters, only 7% of unicorns are hardware companies, and energy doesn’t register high as a major business sector that has seen many unicorns. Further, companies that rent or lease their physical or intellectual assets make up just 1% of recent unicorn companies, which makes this particular model look pretty disadvantageous.
It doesn’t mean that this idea is not feasible – maybe it’s an underappreciated sector, or the idea is completely groundbreaking. However, given the information above, it’s most likely that this will be a tough go, so it’s worth making adjustments accordingly.
Playing the Green Team
Based on the above information, what combination of startup traits could provide the most common recipe for unicorn status?
Let’s create a hypothetical new startup:
- It should be consumer focused, since the majority of companies are B2C (62%)
- It should provide software, since 87% of all unicorns focus there
- This startup should be retail/e-commerce marketplace focused, a category home to a whopping 25% of recent unicorns
- It should have a model based on commission or brokerage fees (33% of recent unicorns)
It’s not hard to see similarities with the above traits and recent unicorns like Shopify or Airbnb, which both serve as solid precedents for success.
Of course, it’s far from a guarantee of future unicorn status, but it does mean that you likely have better than a 0.00006% chance.
10 Types of Innovation: The Art of Discovering a Breakthrough Product
How do companies like Amazon and Apple consistently make game-changing products? Here are 10 types of innovation, and the tactics that lead to big breakthroughs.
The Art of Discovering Breakthrough Products
As venture capitalist Peter Thiel once put it, “competition is for losers”.
It’s inevitable that every company out there must be out there battling for market share, but you don’t really want to be in a situation where the competition is so stiff that any potential upside is eroded away in the process—a scenario known as perfect competition in economics.
To avoid perfect competition, companies must strive to build an economic moat that gives them a sustainable competitive advantage over time. While these protective moats can arise from a number of different sources, in today’s information economy they most often arise from the power of innovation.
But where does innovation come from, and is there a universal framework that can be applied to help consistently make big breakthroughs?
The 10 Types of Innovation
In today’s infographic, we showcase the culmination of years of in-depth research from Doblin, an innovation-focused firm now owned by Deloitte.
After examining over 2,000 business innovations throughout history, Doblin uncovered that most breakthroughs don’t necessarily stem from engineering inventions or rare discoveries.
Instead, they observed that innovations can be categorized within a range of 10 distinct dimensions—and anyone can use the resulting strategic framework to analyze the competition, to stress test for product weaknesses, or to find new opportunities for their products.
Here are the 10 types of innovation:
|1.||Profit Model||How you make money|
|2.||Network||Connections with others to create value|
|3.||Structure||Alignment of your talent and assets|
|4.||Process||Signature of superior methods for doing your work|
|5.||Product Performance||Distinguishing features and functionality|
|6.||Product System||Complementary products and services|
|7.||Service||Support and enhancements that surround your offerings|
|8.||Channel||How your offerings are delivered to customers and users|
|9.||Brand||Representation of your offerings and business|
|10.||Customer Engagement||Distinctive interactions you foster|
From Theory to Practice
What does innovation look like in practice?
Let’s see how well-known businesses have leveraged each of these 10 types of innovation in the past, while also diving into the tactics that modern businesses can use to consistently make new product breakthroughs:.
Innovation Types #1-4: “Configuration”
According to Doblin, the first four types of innovation center around the configuration of the company, and all the work that happens “behind the scenes”.
Although innovation types in this category are not directly customer-facing, as you can see in the examples below, they can still have an important impact on the customer experience. How your company and products are organized can have a crucial downstream effect, even enabling innovations in other categories.
Two of the most interesting examples here are Google and McDonald’s. Both companies made internal innovations that empowered their people to make important advancements further on downstream.
In the case of McDonald’s, the franchisee insight that led to the introduction of the Egg McMuffin spearheaded the company’s entire breakfast offering, which now accounts for 25% of revenues. Breakfast is also now the company’s most profitable segment.
Innovation Types #5-6: “Offering”
When most people think of innovation, it’s likely the offering category that comes to mind.
Making improvements to product performance is an obvious but difficult type of innovation, and unless it’s accompanied by a deeply ingrained company culture towards technical innovation, such advancements may only create a temporary advantage against the competition.
This is the part of the reason that Doblin recommends that companies focus on combining multiple areas of innovation together—it creates a much more stable economic moat.
Apple has a reputation for innovation, but the product ecosystem highlighted above is an underappreciated piece of the company’s strategy. By putting thought into the ecosystem of products—and ensuring they work together flawlessly—additional utility is created, while also making it harder for customers to switch away from Apple products.
Innovation Types #7-10: “Experience”
These types of innovation are the most customer-facing, but this also makes them the most subject to interpretation.
While other innovations tend to occur upstream, innovations in experience all get trialed in the hands of customers. For this reason, intense care is needed in rolling out these ideas.
In the early days of the internet, online shipping was precarious at best—but Amazon’s introduction of Amazon Prime and free expedited shipping for all members has been a game-changer for e-commerce.
Executing on such a promise was no small task, but today there are 150 million users of Prime worldwide, including some in metro areas who can get items in as little as two hours.
Making Innovations Happen in Your Organization
How can organizations approach the 10 types of innovation from a more tactical perspective?
One useful resource is Doblin’s free public list of over 100 tactics that correspond with the aforementioned framework.
The one-pager PDF provides a range of typical dimensions for approaching each type of innovation. In essence, these are all different ways you could consider when trying to differentiate your product or service—and at the very least, it provides a useful thought experiment for managers and marketers.
Visualizing the Rise of Digital Payment Adoption
By 2023, digital transaction values could reach $6.7T globally—catalyzed by digital commerce and mobile payments. COVID-19 is only accelerating this trend.
Digital Payments: The Evolution of Currency
Over the last decade, the digital payments landscape has undergone a structural shift.
Consumer behaviors are changing—moving towards contactless and cashless transactions. Meanwhile, as the magnitude of COVID-19 grows, these trends have only accelerated.
Today’s infographic navigates the digital payments ecosystem, exploring its history and innovative technologies, and how it continues to grow as a solution of choice for trillions of dollars of transactions each year.
Digital Payments Timeline
The origins of digital payments began over 25 years ago with then 21 year-old entrepreneur Dan Kohn in Nashua, New Hampshire, who sold a CD over the internet via credit card payment.
- 1994: First online purchase is made
A CD of Sting’s Ten Summoner’s Tales is sold for $12.48 on NetMarket.
- 1997: First mobile payments and first contactless payments
Coca-Cola installs two vending machines in Helsinki that accept payment by text message.
- 1999: Paypal launches electronic money transfer service
Early on, PayPal’s user base grew nearly 10% daily. Tesla CEO Elon Musk and venture capitalist Peter Thiel were among its co-founders.
- 2003: Alibaba launches Alipay in China
Today, the mobile payment platform has witnessed stunning growth — leveraging digital wallets accepted by merchants in over 50 countries and regions.
- 2007: M-PESA creates the first payments system for mobile phones
Kenya-based M-PESA launched its mobile banking and microfinancing service. Today, it has over 37 million active users on its platform across Africa.
- 2009: Bitcoin enables secure, untraceable payments
Satoshi Nakamoto develops the first decentralized payment network in the world.
- 2013: WeChat Pay is rolled into the popular messaging platform
By 2018, it surpasses 800 million monthly active users.
- 2014: Apple Pay launches
By 2023, over $2 trillion of mobile payment transactions could be authenticated by biometric technology.
As technological advances continue to unfold, advances in digital payment technologies are creating ripple effects globally.
Geographical Differences in Adoption
Unsurprisingly, the sheer volume of digital payments has continued to grow at a double-digit pace, now surpassing the $4.1 trillion mark.
How do cashless payments break down across different countries?
|Country||Daily Average Volume of Cashless Payments||Average Annual Cashless Payments Per Person|
Singapore has the highest number of cashless payments per individual, averaging 831 cashless payments annually. The country’s robust e-commerce market is supported by high-speed, reliable internet and a young, tech-savvy population.
With e-commerce spending accounting for about 6% of South Korea’s national GDP, it is another leading purveyor of a cashless society. Meanwhile, Sweden is projected to become a cashless nation as early as 2023.
Pivotal factors—including core infrastructure, consumer behavior and rising revenues—provide a glimpse into the rapidly changing payment horizon.
The Future of Digital Payments
As transactions rise, a number of other technological innovations could be instrumental to shaping the evolution of the digital payments industry:
- Messaging-app payments
Facebook Messenger, WhatsApp, and WeChat can leverage the reach of billions of users.
- Voice-activated commands
Paying for gas, groceries, or retail via voice could soar.
- Peer-to-peer (P2P) payments
Bank of America and Visa are investing heavily into P2P partnerships.
Over one million transactions take place daily on average.
- Biometric payments
Smartphone biometric security features could spur traction across digital payments.
- Facial recognition
May soon replace QR codes across retail, transit, and airports in China.
- Crypto wallet adoption
Blockchain wallet users are predicted to soar to 200 million by 2030.
- Hardware & in-store interfaces
Square, Stripe, and Clover are driving new mobile processing integrations.
The $4.1T digital payments ecosystem is facing a notable transition, catalyzed by a wave of global advancements and disruption. As the industry continues to widen its reach, consumers and investors alike can benefit from the shift towards a cashless economy.
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