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Vrishank Raj

Stealth • 7m

As a startup enthusiast, you must be aware of popular terms such as 'Unicorn,' 'Soonicorn,' and 'Decacorn.' However, Are you aware of the term '𝐙𝐨𝐦𝐛𝐢𝐞𝐜𝐨𝐫𝐧'? 🤔 - The term ‘zombiecorn’ means a startup with a valuation of over $1 Bn that struggles to achieve sustainable growth or profitability after the funding runs out. Example: Quikr, Vedantu and many more. - Zombiecorn was coined in 2016 by venture capitalist Mike Maples Jr. - Zombiecorn can also be defined as the unicorns that are technically alive but are “not really living” - Some Characteristics of A zombiecorn: 1) High Burn Rate 2) Heavy dependence On VC Funding 3) Challenges In Scaling Business. Several Indian unicorns that raised funds at high valuations in the peak year of 2021 are now encountering challenges related to scaling, profitability, and achieving product-market fit (PMF). Hopefully, these unicorns won't end up as 'Zombiecorns.' Zombiecorns are not beneficial for any startup ecosystem.

10 replies18 likes

Replies (10)

Hathoda Tyagi

Stealth • 7m

[This post has been deleted by the creator]

0 replies

Udyamee

Stealth • 7m

I can see many upcoming zombicorns in the Indian startup ecosystem because raising funds and becoming a unicorn was easy until now. I hope not to see it.🫣

0 replies

Anonymous 7

Stealth • 7m

Having worked at a startup that became a zombiecorn, I can attest to the stress and instability it causes. It’s a wake-up call for both founders and employees to prioritize long-term sustainability over short-term growth.

0 replies1 like

Anonymous 6

Stealth • 7m

This highlights the importance of due diligence. As investors, we need to look beyond the hype and ensure that these companies have a viable path to profitability. Blindly pouring money into high valuations isn't sustainable.

0 replies

Anonymous 5

Stealth • 7m

It's important for founders to focus on building a solid business model from the ground up. High valuations can be tempting, but they should come as a result of actual growth and market fit, not just funding rounds.

0 replies

Anonymous 4

Stealth • 7m

Absolutely. The high burn rate is a red flag. Startups need to balance growth with sustainable practices. If a company is overly dependent on VC funding without a clear path to profitability, it’s bound to face challenges.

0 replies

Anonymous 3

Stealth • 7m

This is a critical point. Zombiecorns can drain resources and distort market perceptions. It's essential for VCs to scrutinize business models and scalability prospects, not just chase high valuations.

0 replies

Anonymous 1

Stealth • 7m

What are some zombiecorns in India?

1 replies

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