11May

Will Redbubble achieve Unicorn Status?

Excerpt through McKinsey

We are looking forward to the launch of Redbubble on the ASX on Monday!
It is listing at a valuation of $250m+ and the big question is whether Redbibble will be a Unicorn!
Historically, Companies with

  • a solid business of significant revenue – greater than $100m ,  
  • an historical growth rate of 50% plus,  
  • a strong foundation, 
  • an aligned team 
  • and a clear vision  

will have a good chance of achieving unicorn status ($1b plus valuation)

This bodes well for a tech company to achieve unicorn status! 

Looking forward to continue to be a part of  the journey of Martin Hosking and Redbubble! 

Many companies grow via acquisition, and McKinsey examined the acquisition activity of 578 software and online-services companies that surpassed $100 million in annual revenue2
and identified three lessons:
  • 1. Low-volume acquisition programs disrupt growth; high-volume programs accelerate growth. The software and online-services companies whose revenue grew most rapidly had high-volume acquisition programs.

  • 2. Successful acquisition programs complement organic growth. Among software and online-services companies that reached $1 billion in annual revenue, acquisition efforts preserved or accelerated organic growth. These companies completed more deals, squeezed more growth out of each deal, and managed to preserve high organic growth while investing energy in finding and incorporating acquisitions.

  • 3. Successful acquisitions align with growth strategy. Companies that accelerate revenue growth through acquisitions don’t treat deals as an opportunistic event to capture cost synergies. They use several different deal archetypes—all linked to their fundamental growth strategy.

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