A life cycle view on unicorn start-ups: drivers of long-term high-growth

Abstract

Purpose

The purpose of this study is to explore the exogenous and endogenous drivers of the high-growth of Unicorn start-ups along their life cycle, with a particular focus on Unicorns in the fintech industry.

Design/methodology/approach

The study employs an explorative longitudinal analysis with a matched-pair of two cases of Unicorns start-ups with similar antecedent features to understand holistically drivers over the longer term.

Findings

High-growth patterns over the longer term are the result of a combined industry- and company-life cycle perspective. Drivers and growth patterns vary significantly according to the time of entry in the industry and its development status. The findings are systematised within a set of propositions to be tested in future research.

Research limitations/implications

The limitations lie in empirical evidence, as the analysis is limited to one-matched-pair. The revealed Unicorns' drivers for long-term growth might encourage future research to further investigate these drivers on a larger scale.

Practical implications

The study offers practical recommendations for start-ups with high-growth ambitions and advice to policy makers regarding the development of tailor-made support programs.

Originality/value

The study significantly extends extant work on growth and high-growth by examining endogenous and exogenous triggers over time and by linking the Unicorn-life cycle to the industry life cycle, an approach which has, to the best of the authors’ knowledge, not yet been applied.

Citation

Kabbara, D. and Hagen, B. (2023), "A life cycle view on unicorn start-ups: drivers of long-term high-growth", Journal of Small Business and Enterprise Development, Vol. 30 No. 6, pp. 1210-1240. https://doi.org/10.1108/JSBED-02-2023-0077