For Every One Unicorn Company You Strive to Create, You Will Miss Out on 665 Million Dollar Winners
"Singles and doubles are the new unicorns." -JY
I wrote about this premise yesterday in relation to the Silicon Valley Bank and First Republic banking fiasco, and the message seemed to land.
FOR THE FIRST TIME!
Because I have been preaching for two years that a change in expectations was required for entrepreneurs who commit to their dream because the likelihood of a unicorn (billion-dollar business) is a fraction of a fraction of a fraction of a percentage.
Studies actually show the following:
"A business has a 0.00006% chance of becoming a unicorn, and it takes an average of seven years for nascent startups to grow into unicorns."
Now let's define a single and/or double...
Project 10K, a tech ecosystem committed to building, scaling, and selling 10,000+ tech companies in the coming years while reducing risk to the lowest level possible for early-stage tech entrepreneurs, states that a single/double is a business with ARR (Annual Recurring Revenue) of $1,000,000. SaaS multiples have been pretty wild over the past few years, but the range is anywhere from 6x-15x top-line revenue, so let's say, on average, it will land at 10X top-line revenue. This means that a single of $1,000,000 of top-line revenue will lead to an exit of $10,000,000.
If you had a $10,000,000 exit within 18-36 months post launch of your business where you invested full-time effort but only $50,000 initially and then grew the business through cash flow - would your life TRANSFORM?
The answer is - OF COURSE!
Assuming you walk away with $5,000,000 once taxes and fees are removed, and you invest $4,000,000 into a cash-flowing investment vehicle paying out dividends of only 10% per year - your cash flow would be $400,000 yearly, plus the principal will be growing as well.
There is NO press for a $10M exit...
There is NO trophy for a $5,000,000 payday...
There is NO celebration for a business doing $1,000,000 in ARR...
BECAUSE - "Singles and doubles are the new unicorns." -JY
And to drive home this point...
Chance of a unicorn: 0.00006%
Chance of a $1M ARR SaaS business: 4% (665x greater chance than a unicorn)
Chance of a $10M ARR SaaS business: .4% (66x greater chance than a unicorn)
Project 10K is committed to helping 40% of the entrepreneurs we support to achieve a minimum of $1M in ARR - 10X RESULTS!
A billion-dollar business is probably earning about $100,000,000 in top-line revenue each year, whereas the 665 businesses you ignore on your quest for the ONE billion-dollar business would produce $665,000,000 in top-line revenue and have a total valuation of $6.65 billion.
665 businesses have a total valuation of 6.65x of one billion dollar business with significantly less risk because of the diversification of the 665 businesses compared to the one business.
THIS is one of the many reasons why our team at Project 10K, our shareholders, and our co-founders are extremely bullish in the world of early-stage tech because we have found a way to validate ideas faster, achieve cash flow in warp speed, scale to profitability, and go on a journey for a single/double within 18-36 months - less risk, more fun, AND liquidity for everyone!
Live with Intention,