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Find out why Investors are Interested in Cockroach Startups

Cockroach startups are gathering a lot of interest from investors. Contrary to Unicorn Startups, these are able to sustain their growth in harsh conditions.

Startups, which function and adapt according to conditions, without causing any downfall are known as Cockroach Startups. These startups are focusing on long time growth and are independent to investment. They survive patiently and get payback in form of fame and money. They might grow slowly but they have a stable growth in the long run. Cockroach Startups tend to mature, gain experience, make mistakes and learn. Unicorn startups on the contrary are highly valued business.

Unicorn companies are forced to progress at a much faster rate at every stage.  This can sometimes lead to several poor decisions. Investors have started to acknowledge this simple fact and are getting out of unicorns. This is mainly due to flawed business plan, caused due to lack of examination of plans from time to time. They have started to invest in cockroach companies as they are the ones who know how to survive.

Which startups can be considered as Cockroach Startups?

Cockroach Startups measure and analyze every step. They have a different approach to be efficient in giving an output .You can be a Cockroach Startup if:-

The product developed can do without funds and the startup saves as much money as possible making use of only what is required. Focus on product and not on funds received, have a strong business model and sound fundamentals are the key points required.

Even though unicorn startups like Flipkart and Snapdeal have stable growth rate, they are facing difficulties in raising funds.  In contrast, Cockroach startups will always tend to function and maintain stable financial status. In last year Unicorn companies received funds worth $1 billion. But more and more investors are concentrating on Cockroach Startups now.

Upcoming startupsshould always focus on developing something new, instead of acquiring funds, as creative models will always attract more investors. Development of products, being built, might be slow but it will teach the company great survival skills.

Takeaways:

  • Cockroach startups are much more focused on long time growth, less depedent on fundings.
  • Investors are now focusing to invest in Cockroach Startups those shows long term growth rather than Unicorn Startups.
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