Unicorn companies are the dream of every entrepreneur. But what is one and where does one even begin the transformation from a startup into one of these highly-valued unicorn companies? Easily put, unicorns are companies that have a global, billion-dollar, money-magnet, and future-proof business model and product. The only way to be one of these is to have an evergreen, innovative idea-derivative, as well as a fitting operational and execution strategy.
The magic of Unicorns
These Gold-Star Companies Bring a Little Something of Their Own to the Table. Source : hazzdesign.com
Singapore does have a couple of its own unicorns, one of which we’ll be talking about extensively a little later. But the main question to tackle when discussing unicorns is why all the spotlight for what is essentially a good, working business strategy, which is also something a lot of others have?
Unicorns are a tad special, in that, alongside a good business strategy, they have the position, product, and right skills for a massive expansion, which could potentially bring in billions upon billions in revenue. And that comes more big backing and further growth curves. These businesses are stuck in what is called a “growth loop”. They keep growing, somewhat impervious to legal, financial, and political changes.
The benefit of this, especially to a locality that houses a unicorn, is obviously the boom in job opportunities. Growing companies need people, and that’s enough said. And since most unicorns are tech-related, it’s a magnet for complementary businesses to also set up shop within the vicinity. Aligning governmental ideals and visions are also an attractant for these stellar-performance companies, naturally speeding up the country’s journey to reach it.
Unicorns are a tad special, in that, alongside a good business strategy, they have the position, product, and right skills for a massive expansion, which could potentially bring in billions upon billions in revenue. And that comes more big backing and further growth curves. These businesses are stuck in what is called a “growth loop”. They keep growing, somewhat impervious to legal, financial, and political changes.
The benefit of this, especially to a locality that houses a unicorn, is obviously the boom in job opportunities. Growing companies need people, and that’s enough said. And since most unicorns are tech-related, it’s a magnet for complementary businesses to also set up shop within the vicinity. Aligning governmental ideals and visions are also an attractant for these stellar-performance companies, naturally speeding up the country’s journey to reach it.
But why choose Singapore?
These Gold-Star Companies Bring a Little Something of Their Own to the Table. Source : pixabay.com
The last Singapore Fintech Festival saw a panel table that discussed Singapore’s position from the unicorn’s perspective. And as mentioned earlier, Jefferson Chen, from our very own Advance Intelligence Group (AIG) was also present as a key speaker. Other speakers were Charles Song, from Linklogis (China), and Niraan De Silva from VNLIFE (Vietnam). The discussion was moderated by Paul Ng, from the investment arm of the Singapore Economic Development Board, EDBI.
The Main Panel for the Event. Source : gevme.com
The sharing opened strong with Song from Linklogis cementing Singapore’s potential as a regional unicorn hub, stating that it is indeed one of the stronger growing sources of tech and innovation, especially within the supply chain niche. With a local trade-related staple currency innovation lab slated for operations 2022, Song also stated the parallels between the state’s vision to achieve further growth in Fintech and Linklogis’ core company goals.
This was seconded by VNLIFE’s De Silva, stating that their company has a local presence for its RND and Engineering division, citing quality talent and skill as the main driver of the decision. Vietnam’s largest digital payment and cashless network provider also spoke of the presence of other symbiotic companies based in Singapore, making it the obvious strategic choice for most unicorns in the region and out. With plans to offer their services across Southeast Asia (SEA), De Silva marks Singapore as a key unit of their growth, once they complete their plans to establish a local regional headquarters.
This was seconded by VNLIFE’s De Silva, stating that their company has a local presence for its RND and Engineering division, citing quality talent and skill as the main driver of the decision. Vietnam’s largest digital payment and cashless network provider also spoke of the presence of other symbiotic companies based in Singapore, making it the obvious strategic choice for most unicorns in the region and out. With plans to offer their services across Southeast Asia (SEA), De Silva marks Singapore as a key unit of their growth, once they complete their plans to establish a local regional headquarters.
Strategies from the Unicorn’s pocket
The Unicorns’ Strategic Planning Structure Leave Them Members of the “Growth Loop”. Source : pixabay.com
Winds quickly shifted to discussing the strategies in place under a unicorn operational and thought structure, the very ones that startups want to get their hands on. From the Linklogis side, they deploy strict, specific strategies for their local markets, and a more lax, universal one for their global takeovers. The idea here is to work from Singapore – using it as a regional touchpoint to connect Asian exporters with buyers from the USA and parts of Europe.
They’ve also led themselves into a locally-backed partnership with UK banking giant, Standard Chartered. The digital-banking-focused unit will be headquartered in Singapore and is tasked with investigating ways to scale larger, more cost-effectively. Their main reason for this is the local policies that embrace the Fintech-friendly economy, outlined by the Singaporean government.
They’ve also led themselves into a locally-backed partnership with UK banking giant, Standard Chartered. The digital-banking-focused unit will be headquartered in Singapore and is tasked with investigating ways to scale larger, more cost-effectively. Their main reason for this is the local policies that embrace the Fintech-friendly economy, outlined by the Singaporean government.
From startup to a billion-dollar valuation
These High-Functioning Startups Reach the $ 1b Valuation Without Stock Market Help. Source : istockphoto.com
When speaking about their growth from a puny startup to what they are today, all the speakers noted a similarity in their experiences – a chaotic start and a future with a smidge of structure. According to Chen, unicorns require the flexibility to ensure that they are always in the position of being able to innovate and present themselves creatively to their target market.
Another factor in common is their need for a multi-skilled workforce. This was described by Song as a challenge of compatibility, rather than one of knowledge and experience. He quipped that a team, made up of suitable people, who knew the industry, market, and its funders were more valuable than a team made up of people with just on-paper credentials.
Another factor in common is their need for a multi-skilled workforce. This was described by Song as a challenge of compatibility, rather than one of knowledge and experience. He quipped that a team, made up of suitable people, who knew the industry, market, and its funders were more valuable than a team made up of people with just on-paper credentials.
Song, Sharing Linklogis’ Journey to Being a Unicorn. Source : gevme.com
Management tools and decision-making were also talked about. Song decided that a proper strategy and a set of working tools were crucial to a unicorn’s well-being. Linklogis employs a simple 4-point process known as STAR – strategy, team & talent, actions, review. AIG’s Chen added that alongside tools, a good balance between centralized and decentralized decision-making is necessary, especially when one wants to expand to markets across regions and cultures.
The winning culture formula
The Key Is to Formulate a Culture that Fits a Diverse Team. Source : unsplash.com
Seeing as all the key speakers have a mind to expand within SEA, across multiple cultural and societal norms, they were also asked about how this affects their in-company culture. Chen says that there are 3 main things that AIG looks at when assessing its culture and its amendments – is it customer-centric, data-centric, and people-centric?
The company also takes an outsider’s view on its operations and structuring, as well as business positioning. This allows a proper, unbiased assessment to be done, thus identifying fault lines and inefficiencies throughout the firm. In line with the decentralization of decision-making, AIG finds that empowering people to take key decisions at divisional and group levels is beneficial for a company’s growth, especially one that branches out across people, cultures, and societal norms.
The company also takes an outsider’s view on its operations and structuring, as well as business positioning. This allows a proper, unbiased assessment to be done, thus identifying fault lines and inefficiencies throughout the firm. In line with the decentralization of decision-making, AIG finds that empowering people to take key decisions at divisional and group levels is beneficial for a company’s growth, especially one that branches out across people, cultures, and societal norms.
Chen, Speaking About the AIG Culture. Source : gevme.com
De Silva of VNLIFE also adds to this, stating that leadership by example is the best possible guide when dealing with a team from various backgrounds. Having someone to emulate always helps because no matter how clear a company’s goal or vision, there is always a tendency for it to be misconstrued when it arrives in a different cultural setting and society.
Linklogis also stands by the idea of leadership by example, adding to it the factor of communication. Song stressed the importance of ideas, vision, and goals to be shared via a two-way communication channel. Letting the team know what needs to be done and receiving their feedback not only ensures that everything gets done right the first time, but lets your people know that they are heard and valued. It also invites innovation and creativity, whereby people within the firms’ ecosystem begin looking for unusual and unique ideas to achieve the vision and goals set at the top.
Linklogis also stands by the idea of leadership by example, adding to it the factor of communication. Song stressed the importance of ideas, vision, and goals to be shared via a two-way communication channel. Letting the team know what needs to be done and receiving their feedback not only ensures that everything gets done right the first time, but lets your people know that they are heard and valued. It also invites innovation and creativity, whereby people within the firms’ ecosystem begin looking for unusual and unique ideas to achieve the vision and goals set at the top.
Solving Problems – the Unicorn way
How Do Unicorns Solve Problems? Source : unsplash.com
The discussion on problem-solving within a unicorn setup saw techniques of looking at both the consumer and merchant side for AIG. Chen advises startups to take a big-picture approach and assess problems from every aspect. In addition to that, a fluid set of operation guidelines with a nimbleness when rearranging the team is also a good thing to have, especially when making changes the require rapid actions, which is common in tech.
The magical future of Singapore – SEA’s regional Unicorn arboretum
Can the Merlion Nation Handle the Heat? Source : unsplash.com
The panel sums up by reiterating Singapore’s role in their expansion plans and its strategic position within the region as a hotbed for unicorn growth in SEA. They also had a few things to share with startups with a vision to be unicorns. From Linklogis, the advice is to manage cash flow as stringently as possible, this including spending on expansions. “When spending money, spend and expand wisely”, is the gist from Song.
De Silva comes in with a message on understanding the customer as well as investing in relationships with strategic partners. He encourages building connections from early on, even when they seem to be less beneficial during the active growth spurt of every startup. Understanding the customer was also another counsel of De Silva, supported by Song.
Chen closes the panel discussion with pointers on focusing on the details, especially in customer-facing processes. He also says that it helps when startup companies work from their goal backward, and not be afraid of change, creative movements and continuous innovations – be it processes, operations, product, or organizational structure.
De Silva comes in with a message on understanding the customer as well as investing in relationships with strategic partners. He encourages building connections from early on, even when they seem to be less beneficial during the active growth spurt of every startup. Understanding the customer was also another counsel of De Silva, supported by Song.
Chen closes the panel discussion with pointers on focusing on the details, especially in customer-facing processes. He also says that it helps when startup companies work from their goal backward, and not be afraid of change, creative movements and continuous innovations – be it processes, operations, product, or organizational structure.
De Silva, Sharing Some Insights with Budding Startups. Source : gevme.com
With so many unicorns looking towards Singapore, both for leadership in Fintech and to play a role in creating more Fintech-related unicorns, the question now is how is the nation going to step up to the plate and own its strategic advantage of being the potential hub for the growth of technology in banking and finance? That is one that remains to be seen.
