May 20 (edited) in Financials 📈
Cockroach (startup)
Strangely, I was not looking for anything related to business/startups or bugs/cockroaches on Wikipedia when I came across this article. I had never heard the term "cockroach" in the business world.
📝 A cockroach startup is a business that grows steadily and cautiously, focusing on making profits and controlling costs from the very beginning. This type of startup is resilient and can survive tough economic times, making it a safer investment compared to faster-growing but riskier "unicorn" startups.
⏩ If you understand what it means, you can skip the rest of this post, since in the rest I will try to explain the same thing as 2 parts to an average Joe!
🪳 Think of a cockroach. It's small, tough, and can survive in many different situations. They can even survive a nuclear blast.
Now imagine a business that starts small and grows slowly but surely, like a cockroach. This business is very careful with its money, making sure it earns more than it spends and keeps everything under control. Because it grows steadily and is good at managing its money, it's strong and can handle tough times better. Investors (people who put money into businesses) like cockroach businesses because they are less risky.
⚠️They don’t grow super fast, but they are reliable.
🦄 Now, let's think about a unicorn, a magical creature that's very rare and special.
A "unicorn" business is one that grows really fast and becomes very valuable quickly, like finding a magical unicorn. While this can be exciting and can make a lot of money quickly, it’s also much riskier.
⚠️ If something goes wrong, the unicorn might not survive.
Image credit : Dall-E 3 (Of course AI, I am not that talented!)
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Cockroach (startup)
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