Startups That Achieved Unicorn Status in Less Than Two Years

Achieving unicorn status—being valued at over $1 billion—is often seen as the ultimate milestone for startups. While it typically takes years of hard work, dedication, and strategic growth to reach such heights, there are exceptional cases where startups defy the odds and achieve unicorn status in less than two years. Let's delve into some remarkable stories of rapid ascension in the startup world.

Stripe : Redefining Online Payments

1. Founded : 2010
2. Turned unicorn : 2012

Founded in 2010 by brothers Patrick and John Collison, Stripe set out to revolutionise online payments. With a mission to simplify the complexities of payment processing, Stripe introduced a developer-friendly platform that seamlessly integrated with websites and mobile applications. By providing businesses with the tools to accept payments online efficiently, Stripe tapped into the burgeoning e-commerce market.

Within just two years of its inception, Stripe achieved unicorn status in 2012, marking a watershed moment in the fintech industry. Its rapid ascent was fueled by its innovative approach, relentless focus on user experience, and strategic partnerships with leading technology companies. Stripe's journey underscores the transformative power of simplicity and accessibility in driving widespread adoption and market disruption.

How did they do it? 

Stripe achieved unicorn status in less than two years by addressing a real market gap in online payments, providing a simple and convenient way for businesses to accept payments online.

The company's success can be attributed to several factors:

1. Solving a Real Problem: Stripe focused on simplifying the process of accepting payments online, making it invaluable for its customers.
2. Obsessing Over Customer Experience: Stripe's emphasis on ease of use and seamless integration attracted major accounts like Lyft and smaller businesses alike. Its customer-centric approach, both for sellers and buyers, contributed to its rapid growth.
3. Global Expansion and Innovation: Stripe's continuous international growth, acquisitions, developer tools, and new software offerings have fueled its success. By expanding to various countries and acquiring strategic startups, Stripe has positioned itself as a leader in the online payment industry.
4. Venture Funding and Strategic Partnerships: Through significant funding rounds from prominent investors like Visa, American Express, Peter Thiel, and others, Stripe secured the financial backing needed for expansion and innovation. Additionally, strategic partnerships with companies like Facebook, Pinterest, Twitter, Alibaba, Apple, and American Express have further boosted its growth.

Stripe's ability to innovate, focus on customer needs, expand globally, secure funding, and form key partnerships has propelled it to unicorn status with a valuation of $152 billion as of the latest data.

Robinhood: Democratizing Finance

1. Founded : 2013
2. Turned unicorn : 2015

Launched in 2013 by Vlad Tenev and Baiju Bhatt, Robinhood embarked on a mission to democratize finance by offering commission-free trading to retail investors. With a sleek mobile app and a user-centric approach, Robinhood challenged the traditional brokerage model, empowering individuals to invest in stocks, ETFs, and cryptocurrencies with ease.

Despite facing scepticism from industry incumbents, Robinhood's disruptive business model resonated with a new generation of investors seeking accessible and affordable trading solutions. By leveraging technology to eliminate barriers to entry and democratise financial markets, Robinhood attained unicorn status within two years of its founding, signalling a paradigm shift in the finance industry.

How did they do it? 

Robinhood achieved unicorn status in less than two years by growing its user base and revenue at a rapid pace. The company reached 2 million total users, with 17% month-over-month growth of its revenue-driving Robinhood Gold subscription product. This growth convinced prestigious growth-stage investor DST Global to lead a $110 million Series C investment, valuing the company at $1.3 billion.

Robinhood's success can be attributed to several factors:

1. Commission-free trading: Robinhood's business model of offering commission-free trading attracted users who were looking to save money on transaction fees. This differentiated the company from traditional brokerages like Scottrade and E*TRADE, which charged $7 to $10 per trade.
2. User-friendly app: The simplicity and ease of use of the Robinhood app made it accessible to a wider audience, including millennials who were new to investing. The app's design and user experience helped reduce the time it took to onboard new users and transact.
3. Expanding product offerings: Robinhood Gold, a subscription service that allows users to borrow money to trade and skip deposit waiting periods, helped the company generate additional revenue and address the question of long-term profitability.
4. Strong marketing strategy: Robinhood's content marketing strategy and brand storytelling focused on the benefits of commission-free trading, which helped attract and retain users. The company also hired experienced marketing talent to lead its growth and user acquisition efforts.
5. Efficient cost structure: By leveraging technology and avoiding physical offices and personnel for trading,

Robinhood was able to keep costs efficient and scalable as it grew its user base.

These factors, combined with the growing trend of direct-to-consumer (D2C) businesses and the increasing popularity of mobile and digital platforms, helped Robinhood achieve unicorn status in less than two years.

Nubank: Transforming Banking in Latin America

1. Founded : 2013
2. Turned unicorn : 2018

Founded in 2013 by David Vélez, Cristina Junqueira, and Edward Wible, Nubank emerged as a trailblazer in the Latin American fintech landscape, offering digital banking services and credit cards with no annual fees. By leveraging technology to streamline processes and enhance customer experiences, Nubank disrupted the traditional banking sector, which had long been plagued by bureaucracy and high fees.

Through its relentless focus on innovation and customer-centricity, Nubank achieved unicorn status in 2018, just five years after its inception. Its rapid growth trajectory highlighted the immense potential of addressing underserved markets and reimagining financial services for the digital age.

How did they do it? 

Nubank achieved unicorn status in less than two years by offering innovative financial services tailored to the needs of the unbanked population in Brazil and Latin America. Nubank quickly gained popularity by providing no-fee accounts and credit cards, addressing the high fees and lack of transparency prevalent in traditional banking systems. By focusing on customer-centric services and leveraging technology, Nubank attracted over 20 million customers and expanded to Mexico and Argentina.

With a focus on customer experience, financial inclusion, and technological innovation, Nubank has emerged as a leading fintech company in the region, showcasing the potential for transformative change in the financial industry.

Canva: Empowering Creativity

1. Founded : 2012
2. Turned unicorn : 2015

Launched in 2012 by Melanie Perkins, Cliff Obrecht, and Cameron Adams, Canva aimed to democratise design by providing an intuitive and collaborative graphic design platform accessible to everyone. With a vast library of templates, tools, and assets, Canva empowered individuals and businesses to create professional-quality designs with ease, regardless of their design expertise.

By tapping into the growing demand for visual content and simplifying the design process, Canva garnered widespread acclaim and achieved unicorn status in 2015, just three years after its founding. Its rapid ascent underscored the transformative potential of empowering users to unleash their creativity through technology.

How did they do it? 

Canva achieved unicorn status in less than two years through a combination of strategic moves and innovations. The company, started with a vision to simplify graphic design for everyone. By targeting specific user groups like influencers, social media marketers, and bloggers, Canva quickly gained traction and built a strong community. One key milestone was the appointment of Guy Kawasaki, former Chief Evangelist of Apple, to create Canva's Evangelism program, which significantly boosted user numbers. Canva's profitability was driven by offering a valuable free product accessible to all users worldwide, along with premium features like Canva Pro for increased productivity and design options. The company's success was also attributed to experimentation, localization in over 100 languages, and a focus on mobile accessibility.

Miro

1. Founded in : 2011
2. Turned Unicorn : 2020

Miro, formerly known as RealtimeBoard, is a collaborative online whiteboard platform that enables remote teams to brainstorm, visualise ideas, and work together in real-time. Founded by Andrey Khusid and Oleg Shardin in 2011, Miro steadily expanded its user base and product offerings, attracting customers from around the globe. In April 2020, amidst the rapid shift to remote work, Miro's valuation surpassed $1 billion, marking a significant milestone for the company and solidifying its position as a leader in the digital collaboration space.

These examples illustrate the incredible potential for startups to achieve unicorn status in a relatively short amount of time. Through innovation, perseverance, and a keen understanding of market trends, these companies defied expectations and captured the imagination of investors worldwide. As we look to the future, one thing is clear – the entrepreneurial spirit continues to thrive, driving forward the next generation of unicorn startups.

How did they do it? 

Miro achieved unicorn status in less than two years by prioritising community, creating a vast library of templates and resources, and focusing on collaboration and user experience. The company's success is attributed to its strong content, revamped branding, and the development of a global community hub. Miro's digital whiteboard product, which includes features like pre-built templates, handwritten sticky notes, image and file embedding, videoconferencing, and enterprise-friendly features, has attracted a large user base and numerous high-profile clients. Additionally, Miro's growth strategy includes a freemium sales model, which has driven enterprise sales through bottom-up adoption by users of the free edition. The company has also expanded its global presence by opening offices in various locations and doubling its headcount to over 1,200 employees.