What are cockroach startups
Comparing startups with cockroaches is also a very interesting subject.
Cockroach survives even in nuclear war, so today investor is also searching for such startups, which even if they do not get next level investment, at least business will continue.
Every startup dreams of becoming a unicorn, in his thoughts the business strategy is also according to the unicorn.
Every startups should also plan while making a business plan that if it does not get funding and if it is delayed in getting funding, then how will the business it is planning be completed?
Will the team he is carrying with him, if funding is not received or is late, how will he pay their salary and how will the operational expenses be met.
Every startups think that their idea is the most unique and fundable idea, but sorry, it does not happen.
Don’t know how many ideas are born everyday but only a few ideas reach the next level.
Today, the biggest reason why investors want to invest in cockroach startups is their mindset.
The startup does all the planning on the basis of the idea, makes a business plan, prepares the presentation and works with a very positive mindset and convinces his heart and mind that what he is going to do is exclusive and as soon as he presents Investors will shower money on him.
But he does not want to think that what will happen if the project is not funded.
He does not have the answer to this because if someone asks him about this, he will think that he is thinking negatively.
Rather, thinking about the negative aspect and finding its solution in advance will be considered as a positive approach.
So I request all those startups to think about every aspect of the business and then jump into the field of funding.
Whether the money is yours or that of the investor, give value to it and invest in the right direction. Today we see in daily news that he got funding, he got funding, someone is raising rounds for marketing and someone is raising for capacity increase, the condition of some is that their loss value is more than sale value, that they spend 750 to get a sale of 500 with the thought that the customer will become theirs. It is their thinking that they will change the shopping behavior of the customer but in most of the cases startups fail to do so and in the end who is the investor.
Sustainable unit economics is key
As we have already discussed, the business should be self-sustainable, money is needed to grow any business, if funding is not available, then at least it will continue.
As we saw in covid time, it started raining for edtech startups and they were also getting funding.
See the difference of thinking here, did the startups think that the lockdown that happened in covid will continue forever and the investor’s thinking also matters here whether the lockdown will never open.
One of their thoughts may also be that a person has never been locked at home for so long and now his behavior will change, if the behavior does not change then the business will be sustained. But human nature does not like to be locked up, what was its impact, startups which started thinking of covid in covid time are either closed today, or are waiting for a merger or someone acquired and bought them and are sitting in this wait.
Late-stage startups in most trouble
This time has become very tough for late stage startups because at this time the investor is doing every investment very carefully. There was a time when a race was going on among investors to acquire equity in startups and take 10x the investment in 1 to 2 years. But since covid both investment and exit in the market have become difficult.
How to turn into a cockroach?
Today investors are looking for those startups which are actually cockroach startups. Whose vision is long, who does not think of the investor’s money as free and spends it thoughtfully like his own money, keeps control on capital expenditure and even if the next funding level does not rise or is delayed, at least it continues.
- Money Market Insights