Neil here.

2019 was one of the worst years on record for initial public offerings (IPOs)… and with the current state of the markets, I’d be surprised if 2020 turns out any better.

Last year, a series of big-name companies – think companies like WeWork – failed to launch in the public markets after a string of flopped IPOs.

The consequences of the tough IPO climate rippled through the private markets too, as more and more companies abandoned plans to go public, causing a significant backup in the private market funding cycle.

And while we wait out this economic crisis, companies will have to face the reality that the money they need simply may not be there.

In short, this means that companies will have to shift their focus tremendously.

And I recently came across a Crunchbase article that described this paradigm shift perfectly. Here’s what it said…

These days, volatile market conditions have deflated our confidence in finding that next big unicorn to hit the startup stage.

Now, that doesn’t mean it’ll never happen… but it means that for now, we’ve all got to look out for the strongest of the strong, and back companies that have positioned themselves to weather this economic storm.

What this really means is that instead of unicorns, we’ve got to search for “camels.”

Let me explain. Camels are extraordinary animals. They’re hardy, they’re resilient, and they’re built for survival in the toughest climate conditions.

And a camel in startup-land is a company with those same characteristics.

Companies who at one point were operating on a “growth at all costs” mindset will have to pull back and focus more on making every dollar stretch as far as it can.

This means that companies will have to embrace the idea of being more cautious and conservative than ever with their capital. These companies should shift their focus to building a business that’s set to last… which could mean relying on more than just their money.

A solid business development plan and commitment to sustainable growth is what’s going to keep investors – and consumers – attracted for the long run.

There’s no doubt that our global economy has been completely rattled this year. But I still believe that we don’t need to panic… things are going to get better, and there’s still plenty of growth potential for companies in the meantime.

And while you may have to wait a little longer to see the return of the coveted unicorn, it’s not a lost cause forever.

Startups that keep their company’s health and longevity top-of-mind now will be the ones that we could see break that billion-dollar milestone down the line. By shifting their focus from hitting unicorn status to maintaining camel status, companies can set themselves up to do just that.

I believe that one important way for companies to embrace this “camel” mindset is by choosing more equitable financing methods – like crowdfunding – to open investment opportunities to a larger playing field.

Because now more than ever, companies who attract more capital from wider ranges of investors will be better positioned to succeed. That money will build a steady runway for companies to outlast these tough market conditions… and it’ll prop up investors from more than just the most elite brackets of society.

Ultimately, the camel lifestyle is a win-win these days for companies and investors alike, and I’m excited to see you all benefit from the companies that embrace it.

Until next time,

Neil Patel


Comments

16 responses to “Here’s What I’m Looking for Instead of Unicorns”

  1. I’m really glad to hear people with rich knowledge to help people to find his goals and the American Dream. Thank you
    I hope to get all this knowledge an apply to my life to find my financial freedom.

  2. I’m looking to focus on the 5G and AI area to invest in. So of the things I’ve seen so far in the past week really don’t turn me on after I checked them out. Reason I did not see any the need under the Virus outlook today. This is not saying they would not be a good investment in the future.
    I would like to see more 5G and AI type startups seeking funds.

  3. I would rather have my money invested in technology, biotech stocks and crypto then risk it on startups at this point. I would then take some of the returns and invest a part of them into the camel’s on a very selective basis.

  4. Hello Neil:
    I must say that I am a more than a little surprised that you are suggesting to back of looking for unicorns after listening to you and your guest sell the idea how important (and lucky) it was to find one or two in order make my life a dream. I am going to follow all of your advise and hope for the best. This is all new to me and I’m putting my trust in YOU. I am well aware of the risk out there so I’m just praying your the man. I just joint yesterday so have not received anything other than emails but am very excited and hopeful you can assist in finding help finding a camel. Stay well and God Bless.
    Peter Crest

    • Hey Peter,

      The way I see it, startups that are camels now are the only ones that’ll be able to make it to unicorn status in the future. It’s all about survival. 🙂

      Happy weekend!
      Neil

  5. Neil, Thank you for letting us know about the opportunities that are ahead. I am definitely looking forward to the future of being an investor, as this market will be expanding. Thank You
    David Williams

  6. Hello Neil, I’m excited about starting my life as an investor. I am new in this industry and I am trusting you to steer us the right way. On May 12th I joined and I didn’t get my kit that came with this subscription which includes your book (Hustle). I thought I should have had it by now, and I don’t how do I find out when I could receive it, and actually how long does it take to receive the kit.

  7. I just Became an angel investor on your books and video but I still don’t understand how to invest and how much I have to put into it I don’t have a lot of money have been out of work so I am now on unemployment so I pray that there will be some game I understand they’re also will be some loss but like I said I don’t have a lot of money and would like to understand on how to invest on what to invest in

  8. Hello Neil, I’ve received your book and have started reading already but that’s all I’ve received, what happened with the two great deals/opportunities you were talking about, where can I find these opportunities to invest, all I see is ideas about 5G or cannabis that I need to subscribe with a new company to get the info, for the vegas cannabis deal, there is an $1800 fee to join, for the 5G it’s $39 fee that needs to be paid ( I paid already ), is this how your system works, pay additional fees all the time to find out about companies that are going to be IPO’s in the near future? would you please advise.

    Regards,

    David A

    • Hi David,

      Thanks for reaching out. My name is Sarah, and I work on Neil’s team.

      You can access all of your deals by heading to the Deals page on the Angels & Entrepreneurs website. When you get there, click on an open deal, and you can read all about it. Toward the bottom of the due diligence package, it will tell you how to invest. There are plenty of deals available online right now, with a few more coming down the pipeline soon 🙂

      Here is the link: https://angelsandentrepreneurs.com/deals/

      Best,

      Sarah

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