Investors
In the past, venture capital and private wealth investors were primarily focused on investing in companies with the potential to become unicorns, which are companies valued at over $1 billion. However, this trend has been gradually losing popularity due to the high rate of failure of such companies. Many unicorns have been unable to sustain their valuations and profitability over time, leading to significant losses for investors.
As a result, there is now a growing interest in investing in “zebra startups.” These are companies that prioritize sustainability, social responsibility, and profitability, rather than simply aiming to achieve a billion-dollar valuation. They are often focused on building long-term, scalable businesses that can create meaningful impact and generate steady returns for their investors.
By investing in zebra startups, investors can benefit from a more stable and sustainable investment portfolio, with lower risk and higher potential for long-term growth.
Why investing in zebra startups is a good idea
First, let’s define what we mean by zebra startups. Zebras are companies that are focused on solving social, bureaucratic and environmental problems while also generating a profit.
Unlike unicorns, which are startups that are valued at over $1 billion, zebras are focused on more than just growth and scale. They prioritize sustainability and impact, which makes them a great option for investors looking for ethical and socially responsible investment opportunities.
Investing in zebra startups offers a number of benefits. For one, it allows investors to make a positive impact on society, bureaucracy and the environment. Many zebras are focused on addressing major issues such as social justice, poverty, and inequality, which are all critical issues that require innovative solutions. By investing in these companies, investors can help drive positive change while also generating financial returns.
In addition to their impact, zebra startups often have a more sustainable business model than other startups. Many zebras are focused on long-term growth and sustainability rather than rapid expansion and short-term profits. This means they are more likely to have a strong and stable financial foundation, which can translate into a more reliable return on investment for investors.
Another benefit of investing in zebra startups is the potential for diversification. Many zebras are operating in niche markets or industries, which can offer unique opportunities for investors looking to diversify their portfolio. Additionally, because zebras are focused on solving specific problems, they may be less vulnerable to market volatility than more traditional startups.
So, how can investors identify promising zebra startups to invest in? One way is to look for companies that have a clear impact mission, as well as a solid business plan and the founder’s track record. It is also important to evaluate the company’s management team and assess their ability to execute their vision.
In conclusion, investing in zebra startups is a good idea for investors looking to make a positive impact on society and the environment while also generating a return on their investment. These companies prioritize impact and sustainability, which can lead to more reliable financial returns and a more stable long-term investment strategy.
Why invest through Zebras Hub
At Zebras Hub, we offer a comprehensive cycle to transform startups into viable businesses. Our unique approach recognises that startups with promising market potential often originate from seasoned industry founders. However, these founders may lack the necessary knowledge and experience to successfully launch their business ideas.
To address this gap, we provide a full suite of in-house services that empowers founders to bring their ideas to life. Through close partnership and collaboration with our experienced team, founders can focus on refining their concept and driving adoption within their industry.
Moreover, as part of the Zebras Hub ecosystem, founders can leverage our network of like-minded entrepreneurs to create cross-industry solutions and accelerate product development.
By streamlining the startup process and fostering collaboration, we aim to create a sustainable and impactful community of businesses that prioritize both profit and social impact.
Compared to 10 singular investments of £1.5M
Why is Zebras Hub so effective
Traditional startup model
The traditional startup model involves a period of 9 to 12 months, particularly for tech startups, during which the product is developed and refined before its full launch. During this time, the development staff operates at various capacities, with some working at a maximum of 75% capacity and others at around 25%, due to the Gantt nature of tech development in a startup. Moreover, inefficiencies are more pronounced in administrative staff, where some areas work as low as 15%.
To avoid these inefficiencies, startups often outsource most of these tasks to third-party suppliers. However, this strategy has three major issues facing the startup:
- Founders have to spend a lot of time briefing and checking on these third-party companies, taking time away from their primary responsibilities of pre-promoting their product
- These third-party suppliers are working to maximise their own profit and, therefore, may not provide the best possible service
- Most of these suppliers are based abroad, making it very difficult for the founders to keep a regular eye on development, which in most cases causes delays and in worst-case scenarios requires complete rebuilds.
The Zebras Hub way
In contrast, Zebras Hub offers a unique approach by creating an in-house team that covers the whole range of services required by startups. This approach guarantees that staff is working at a much more efficient time capacity as they are working on multiple startups, and efficiency is further increased as there will be many aspects, especially in tech development, that can be cross-used by multiple startups.
By being an in-house team, the founders have regular access to the team and can trust that the development is being done by professionals, giving them more time to concentrate on pre-promoting their product.
Additionally, being in the Zebras Hub network allows for cross-collaboration and for startups to help each other enter the market.
Furthermore, once the startup gets going, it becomes a lot easier to find permanent staff as they will either come from the Zebras Hub directly or its network, making the transition from under the Zebras Hub umbrella to independent smoother.
Finally, Investment is efficiently distributed across multiple startups, maximising the chances of success and higher returns.
Staff satisfaction
One aspect that is often overlooked is staff satisfaction. It can be challenging to find good staff for startups as job security, especially in the tech world, is very risky. To address this, many startups offer comprehensive packages and controls to staff to attract talent, which can result in friction and dissatisfaction by both founders and staff.
By having the staff in-house at Zebras Hub, there is greater satisfaction and less friction as they are spread over multiple projects and founders. In cases where personality clashes might occur, this can be easily mitigated at Zebras Hub. Ultimately, a happy workforce results in a productive workforce.
3 main benefits to investors
Effective Investment
Investing in Zebras Hub ensures that your investment is optimized by providing funding to startups that leverage the experienced Zebras Hub team, who are engaged in multiple projects and benefiting from economies of scale.
Safe Investment
As the bulk of your investment is directed towards a proficient production and administration team, there is minimal wastage or reliance on untested third-party providers who may not operate efficiently.
Higher Returns
Diversifying your investment portfolio across a wide range of zebra startups and encouraging cross-collaboration between them significantly enhances the likelihood of their success and consequently leads to higher returns.
