True “unicorns” grow in adversity.
On May 10, according to Lv Qian from People’s Daily in Beijing, the 2018 Global Unicorn Summit, co-hosted by People’s Daily and the Chengdu Municipal Government, is set to take place on May 19 in Chengdu and Silicon Valley. Wang Lijie, founder of PreAngel Fund, shared during an interview with People’s Daily’s “Unicorn Lounge” series that most unicorn companies have persevered through hardships, often facing at least ten critical life-or-death decisions. True unicorns, he says, are forged in adversity. “Many entrepreneurs regard fundraising success as a measure of success,” Wang notes. However, securing funds doesn’t equate to success. True success is when a company can generate steady positive cash flow, pay taxes, create jobs, and sustain itself for years, remaining evergreen.
Wang warns that large, one-time funding rounds can lead to complacency. For instance, receiving $200 million in one go can dampen an entrepreneur’s drive, leading to overconfidence and potential missteps. He believes that entrepreneurs should be continuously challenged and willing to engage in self-learning and reflection. Those who withstand adversities can evolve into unicorns and potentially grow into companies valued at tens of billions of dollars. Wang also emphasizes the importance of managing investor expectations through healthy growth of the company. This growth doesn’t necessarily mean immediate profits, but the business must be moving in the right direction. “Confidence from investors comes with the growth of the enterprise. But if a company lacks a clear exit strategy or growth trajectory to inspire investor confidence, the relationship between the enterprise and its investors will likely deteriorate,” says Wang. Original report: http://industry.people.com.cn/n1/2018/0511/c413883-29979883.html
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