Unicorn and Zebra Companies

Our current technology and venture capital structure needs to change. Quantity is rewarded over quality. Shareholder profit is seen as more important than sustainable growth. Instead of investing in start-ups with business plans aiming to give something back to society, we support 'unicorn' companies that promise a quick profit to their investors. The impact of these companies seems to be nothing but disruption instead of doing anything good. Look at the way Facebook was weaponized during the American presidential election. By allowing the spread of fake news, this 'unicorn' company brought disruption to the democratic process.

So what is the alternative? So-called 'zebra' companies aim to find solutions to real-life problems in our world while repairing existing failing social systems. Zebra companies try to balance profit and purpose, and support democracy, while focusing on sharing power and resources. By doing this, 'zebras' create a fairer and more responsible society that helps and heals, through listening to the customers and communities they serve.

Why do we not have more zebra companies? In short, a lack of investment. We don't invest in the process and time needed to help institutions adopt, launch, and measure the success of innovations, apps, and so on. Only around three percent of venture capital investment goes to those who tend to start zebra companies, who are mostly women and people of colour. We don't have enough success stories about existing zebra companies, so are less inspired to try starting one ourselves because of the unknown risks involved. Investors, foundations, and philanthropists are less likely to invest in such companies because they have unproven alternative business models to the typical nonprofit and for-profit companies we are more used to. Without this investment, zebra companies cannot reach their potential to show that these models can work.

In an ideal world, we would support the rise and success of zebra companies. We would focus more on quality products than click-bait and the current capital system that is failing our society. We would value institutions like journalism, education, healthcare, government, nonprofits, and social enterprises. We would change the way we think about companies wanting only to generate profit.