New trends in the start-up ecosystem: the unicorns' aspiration is replaced by sustainable business
The question when the first unicorn with over 1 billion of US dollars in value will appear in the country raises speculations for some time in Lithuanian start-up ecosystem. And even though there are many, not the one, candidates in Lithuanian system of innovative business, an example of a successful start-up, as noted by Anders Lentell, one of the speakers at the event “Startup Fair”, Swedish investor and founder of technology start-up DynaByte, is not just a unicorn label.
According to the “CB Insight“ data of January 2019, there are 345 unicorns in the world, and there are plenty of candidates in various countries of the world, including, without doubt, Lithuania, that could become unicorns. A. Lentell, the speaker at the start-up conference “Startup Fair. Change 2019” is, however, is convinced that an aspiration of becoming unicorn should not be the only objective of an innovative company. To be successful, a start-up has to deal with the market problem. If becoming unicorn will be the only objective of your start-up, you will probably pretty soon become bankrupt”, – says A. Lentell.
“Over the past decade, we have seen many successful companies, including several very successful start-ups, that have established themselves in the Swedish technology market. I think that none of these start-ups could imagine what success they will experience. However, they all knew that the start-up product had to cardinally change the usual system, the specific business market”, – says A. Lentell.
The entrepreneur points out that not the unicorn status but sustainable business is becoming an ever-increasing trend in the world. It can be expressed in two aspects: the company model that ensures a financial stability, or initiatives born through ecological sustainability which, according to the interlocutor, are no longer a sign of luxury for an enterprise seeking exceptional confidence among its customers. Financial stability and fostering the environmental are two areas of particular importance in the world of start-ups. The interlocutor, however, acknowledges that priorities must be made by each start-up individually.
“In my opinion, if your company is not financially stable at the end of the day, then you simply do not exist. I often notice that young start-ups tend to think that attracted funding is their biggest goal. However, it is important to understand that funding is an investment, and a certain person will want to get their money back in the future. So it is important to properly choose the company’s financial strategy which would allow the start-up to grow without additional financial injections. Also, my recommendation for start-ups would not spend the money you do not have, and be 100% sure that the financial strategy you have chosen will work properly before you start applying it”, – says A. Lentell.
The speaker who will arrive at the start-up conference “Startup Fair Change. 2019“ that will take place in Lithuania is positive about the Lithuanian start-up ecosystem, cooperation between science and the state. According to A. Lentell, Lithuanian start-ups have great potential in developing artificial intelligence technology around the world.
“Startup Lithuania” has been organizing the international start-up conference Startup Fair for 7 years. This year, the participants of the conference will have the opportunity to participate in the election of the best start-up, in individual meetings with Lithuanian and foreign investors, to hear the successful experiences of and lessons learned by successful Lithuanian start-up developers, to learn the latest trends in innovative businesses and technologies.
Lithuania will be launching ‘Startup Employee Visa’, a procedure for attracting, retaining and integrating foreign talents that will reduce barriers for the highly qualified professionals that startups need to come to Lithuania. This was established by the memorandum signed today by the Ministry of Economy and Innovation, the Ministry of the Interior and the Migration Department.
Last year, at the international start-up conference Startup Fair, “Oxipit“, a start-up operating in the field of medicine, was recognized as the best and most potential start-up. Then “Oxipit” was only making its first steps, but today it already boldly moves along the path to a practical medical system around the world. The search for the best start-up will also take place this year at the event Startup Fair on May 30th and 31st.