End of unicorns, make way for centaurs. With the bursting of the bubble, investors are betting more on revenue and profit criteria.
Unicorns, decacorns and now centaurs. The bestiary used to symbolize the evolution of start-ups is enriched with a new mythological animal. Paradoxically, the arrival of this legendary creature in the landscape marks a return to reality. In tech language, the unicorn is a start-up valued at more than 1 billion dollars, the decacorn is worth 10 billion. On the other hand, the centaur title no longer depends on a valuation that can soar but on an annual recurring income (ARR) greater than 100 million euros. A much more concrete measure. This is where the paradigm shift lies. With the crisis, and the bursting of the tech bubble, venture capitalists are looking for new, more reasonable measures.
The valuation of the company has become a communication argument, with the guarantee of better visibility for the highest amounts. Over the years, the bar is higher and higher. Headlines are for unicorns only…
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