Unicorns Are Not Important

 

This article is kind of funny, the way it decides to focus only on the super valuable startups (unicorns), but then excludes Facebook from most of the analysis because it’s just so super valuable (a super unicorn) that it throws all the rest of the numbers off.

 

I think the whole thing is just kind of money porn, and doesn’t really teach anything valuable or realistic.  I’d be much more interested if someone rewrote the exact same article, hit all the same data points, but instead analyzed all $10-$100 M exits, and dismissed everything higher than that as an outlier, the same way this article dismisses Facebook.  There’d be a lot more real-world lessons to be learned that way.

 

I came across something the other day that’s useful in exactly the way this isn’t:  Buffer’s monthly look at their numbers.  It’s a wide open window into a fledgling, newly profitable startup, with a valuation of a few million dollars (Exact numbers anyone?  I doubt there’s anything solid), and a clear documented process of exactly how they got there, and where they plan on going from there.  It’s a much more insightful and meaningful look into the world of startups, but unfortunately wont be shared as widely as this Unicorn article at TechCrunch, because it isn’t quite as “cool.”