Idea in Brief
The Consensus
Technology start-ups typically become successful by setting out to “disrupt” an existing industry, using injections of capital to grow as rapidly as possible, and tolerating high risk in a rush for market domination.
A New Path
Entrepreneurs far from superstar innovation cities demonstrate that start-ups can achieve outsize success by following a different path.
The Frontier Approach
Frontier start-ups take a more balanced approach to growth in which they charge for the value they create from the get-go, build resiliency into their models, focus on growth and profitability, and take a long-term outlook. In emerging markets, they are more likely to tackle fundamental societal challenges and to invest in their workforce.
High-growth tech start-ups are the business miracle of recent decades. So-called unicorns—private venture-backed companies valued at $1 billion or more—have changed the fabric of our lives and transformed the way we do business. These firms, concentrated in capital- and talent-rich cities such as Palo Alto, London, and Tel Aviv, are a source of inspiration for entrepreneurs and corporate managers around the world. Most seem to follow the same playbook: Begin with a plan to “disrupt” an existing industry, use injections of capital to grow as rapidly as possible, and tolerate high risk in a rush for market domination.
