The Decreasing Timeline to Achieve Unicorn Status Should Terrify Non-Digital Companies

Originally published as part of, “The Day Before Digital Transformation” by Phil Perkins and Cheryl Smith

Not only do disruptors come on fast, but they are getting even faster.  The disruption market has become so effective that they have taken the average time to achieve Unicorn status (the time it takes to achieve a $1B market valuation) from an average of 7.5 years in 2005 to 2.5 years in 2011.[i]  (Figure 16)  This should terrify executives at non-digital companies.

The market has substantially rewarded organizations that have incorporated Digital Age technologies into their operations, and the trend is increasing each decade.

[i] “Why the Time to $1B in Valuation for Startups is Decreasing,” Tomasz Tunguz, Venture Capitalist at Redpoint, www.tomtunguz.com, December 16, 2014.