In the sphere of startups, the aspiration to attain the status of a unicorn – a company valued at US$1 billion or more – is a common ambition. This holds true in the MENA region as well, where startups in various sectors such as fintech, e-commerce, and edtech are striving to achieve unicorn status. However, there is a burgeoning alternative in the form of “zebra” startups, which prioritise sustainability, profitability, and social impact, in contrast to the rapid growth and high valuations pursued by unicorns.
Startups aspiring to achieve unicorn status are motivated by a variety of factors, such as the validation and prestige associated with reaching a billion-dollar valuation, the access to capital that attracts further investment, the potential for scaling and market dominance, the ability to attract top talent, widespread recognition, and increased attractiveness to potential acquirers. Nonetheless, the journey to becoming a unicorn is not without its challenges, including intense competition, valuation challenges, regulatory hurdles, and the pressure to sustain their valuation while scaling operations profitably.
In contrast, zebras represent an alternative approach to entrepreneurship, prioritising sustainability, profitability, and social impact over rapid growth and flashy valuations. While they may not garner as much attention with billion-dollar valuations, zebras play a crucial role in fostering a more balanced and inclusive startup ecosystem. They embody resilience and sustainability, while also demonstrating that success in entrepreneurship can be measured in more than just monetary terms. However, zebras face their own set of challenges, including securing funding, navigating market dynamics and regulatory environments, and overcoming cultural perceptions that may prioritize traditional business models over sustainable and socially responsible approaches.
The decision between aiming to become a unicorn or a zebra depends on various factors, including market dynamics, investor preferences, and the goals of the startup. While unicorns often attract significant attention and funding, zebras focus on resilience and long-term value creation. Ultimately, the decision lies in selecting the strategy that best fits the startup’s vision, market potential, and growth path.
In conclusion, both unicorns and zebras have their own set of advantages and challenges. The key lies in recognising the value that each model brings to the table and choosing the approach that aligns with the startup’s goals and the realities of the market. As the MENA region continues to evolve as a hub for startups, both unicorns and zebras will play a significant role in shaping the future of entrepreneurship in the region.