A cockroach startup is the one which inspite of struggles and changes in the market, keeps moving in the forward direction just like a cockroach. The speed of growth can be less if we compare with other startups but cockroach startup doesn’t believe in spending too much on the urge of moving fast. These startups are considered a less risky investment.

The difference with unicorn startups

If we talk about the things that make unicorns and cockroaches different, firstly, know that Unicorn startups have a valuation of $1 billion and more. These create more hype than revenues as the high valuation makes investors put their money in these hoping for the growth.

Cockroach startups focus on sustainability, and their growth approach is based on keeping costs low and focusing on the product.

Features of a Cockroach startup

1. Patience

As a cockroach startup is in no hurry to become the favorite in the market by spending bucks, the focus always remains increasing revenues and profits.

4. Product/service is the Key to survive

Cockroach startups are adaptive in nature as they can survive in tough conditions by having a real product or service. Usually, when business starts picking up the right direction, founders tend to forget about the product or service and start focusing on getting funding. Whereas in a cockroach startup, the energies and money are always spent on improving the product or service.

In short, we can say that a cockroach startup keeps working on improving the products and services without spending much at its own pace. You won’t see them in the daily newspapers like the big names but silently they also contribute balance to the startup industry.