If the timing is right, you need capital to push forward
Are you familiar with the land of unicorns? It is a glittering realm of eternal rainbows where everything seems magical. The land of unicorns is an imaginary place where all fantastic ideas are born, often remaining there indefinitely.
On the one hand
In fintech, a business is labelled a unicorn if it appears promising at the outset but only functions and generates profit within an imaginary realm. A unicorn is a privately held business valued at over a billion dollars.
On the other hand
We have five unicorns. But these unicorns have not shown you how to create one. I do not know how to build a unicorn. I have not built a unicorn. But I have dined with some unicorns. Interswitch and TeamApt [now Moniepoint]. I have shaken hands with Andela. From my experience, to make a unicorn, you need two things: money and innovation.
In the long term
In his book, “How to Kill a Unicorn,” Mark Payne referred to the elements I mentioned above—money and innovation. But Payne called them money and magic. An idea is labelled a unicorn if it looks promising at the start, but only works and produces profit in an imaginary world. Using numerous examples from the global innovation firm Fahrenheit212, Payne explained how to develop innovative ideas and solutions that can succeed in the real world.
He described that to foster innovation, you must build a diverse team and encourage debate [not just brainstorming]. Payne founded Fahrenheit212. If you haven’t heard of Fahrenheit212, the company has worked with some of the world’s biggest corporations: Samsung. Coca-Cola. Nestlé. Toyota. The company developed innovative ideas, strategies, and products. Fahrenheit212 created dream teams with money and magic—that is, they combined finance experts—those with commercial, financial, and strategic expertise—with specialists who know how to navigate consumer wants and needs in a seemingly magical way. That’s the winning combination.
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How does this work? Consider an innovative idea or strategy that appeals to consumers but does not generate profit. Without funding, the author notes, the idea is unlikely to be sustainable. Fahrenheit212 tested this by helping turn Samsung’s new translucent LCD screen into a profitable technology. They assembled a team of analysts and financial experts [money] with designers, writers, architects, and film producers [magic]. Together, they devised creative product solutions that were both financially and strategically viable.
To generate great ideas and build a unicorn, do not merely brainstorm with your team. Debate. A 2003 study conducted by UC Berkeley found that debate and criticism—rather than hindering the development of ideas—actually stimulate it. To create a unicorn, timing and capital are essential. If the timing is right, you need capital to push forward. The timing of the COVID-19 lockdown facilitated Zoom Communications Inc.’s rise. The cashless policy and resulting network downtime pushed rapid funds transfer solutions. Innovation is at the core of a unicorn.
In the short term
Are you ready to build your unicorn? Find the money and the magic. That’s the winning combination.
*Olaegbe ([email protected])
