What is a Zebra Company and How Does it Differ from a Unicorn?

 

Today, as the business world evolves alongside new technology and modern values, a new form of business called zebra companies have emerged. Zebras, which aim for sustainable growth and place value on coexistence, have been attracting attention lately around the globe.

 

You’re probably familiar with unicorn companies, which are startups that have experienced exponential growth and are valued at one billion dollars or more. These startups may seem impressive, but the unicorn model offers zero consideration to sustainability and sacrifices corporate ethics. In response to the growing concern for the effects of business on the environment and society at large, zebra companies have stolen the spotlight from their predecessors.

 

In Asia, there are already a handful of businesses that have succeeded with this model and achieved sustainable growth. In this article, we’ll dive into how zebra companies work, their difference to zebra companies, and pick up a few case studies as well.

 

 

 

 

What is a zebra company?

 

A zebra company is both black and white - it is both profitable and works to improve society. In this way, zebra companies are defined as having a “double bottom line.” This business model is framed as an alternative to the disrupting and profit-focused unicorn model.

 

There is also a play on words in that zebras are known to move in groups, and zebra companies are characterized as mutualistic, tending to band together to support and preserve each other. Rather than butting heads and having a 100% competitive relationship, zebra companies cooperate so that their individual inputs come together to produce a greater synergistic product.

 

 

How the zebra movement developed

 

To understand why there was a new need for this zebra model, we need to first consider their predecessor - the unicorn company.

 

Unicorn companies, which have been in business for less than a decade and have generated incredible profits, have achieved rapid growth by repeatedly raising their investments. They have been a trending topic in the news for years, and large corporations are actively seeking out unicorns for fruitful investments and collaborations.

 

However, unicorn companies, which are centered around maintaining that exponential growth no matter what, tended to make their gains from monopolies, and disrupted the existing social infrastructure and crushed rival companies. This sort of irresponsible management has come to the attention of the media and unicorns are being reevaluated under a more critical light.

 

As a result, the zebra model was developed as a modern, more thoughtful approach to business. Zebra companies are now gaining worldwide support for their management style, which emphasizes social responsibility, sustainability, and coexistence with other players on the field - areas in which unicorn companies did not consider that important.

 

 

Zebra companies vs. unicorn companies

 

Zebra companies	Unicorn companies
Aims to build an organization that benefits all stakeholders, in and outside the company. This idea of profit-sharing includes both customers and the general public.	A high-risk/high reward model that requires substantial investments for rapidly expanding profits. The growth benefits only investors and the entrepreneurs.
Dedicated to making a contribution back to society. This is higher on the priority list than finding new investors.	Valuation of more than one billion USD. In order to maintain this value and the pace of growth, they need to focus on attracting new investors.
Success is measured not only by profit, but also by customer success and the contributions made to their community.	Success is measured by the number of customers acquired and total profits.

 

 

Which is better for you?

 

This depends on your product and on your central values as an organization. If you’re disrupting the status quo with revolutionary technology, then it makes more sense to be ambitious and aim for a unicorn model of growth. However, if you want to play it safe, invest your time and energy into giving back to the community and staying accountable for how you affect the environment, then you may prefer to choose the zebra model and build sustainable growth.

 

 

Case studies of zebra companies

Patreon

 

Our first example of a zebra company is Patreon, a crowdfunding platform for musicians, YouTubers, and web-comic creators.

 

With the concept of creating an economy where money circulates multiple times, Patreon has built a system where over 6 million Patreon viewers make monthly donations to more than 200,000 creators. By using Patreon as a payment intermediary, they have created a new system that allows creators to use their money for creative activities and patrons to enjoy them on a regular basis.

 

Toya

 

Another successful zebra company is Toya, a woman-led game studio that designs games within the $50B Roblox metaverse. Their goal is to empower young girls by creating games that feature female heroes. The characters are not bound to traditional gender roles, and they do not reflect non-inclusive standards of beauty or limiting ideas of femininity. The company is driven by their mission to promote gender equality through their games, and inspire the younger generations of girls to make their own career path.

 

Borderless Global

 

Borderless Global is an amazing example of a zebra company that created an original platform for aspiring social entrepreneurs to more easily access business know-how, capital, and skilled workers. They have trained and supported a wide range of social businesses, from a non-profit used kids’ clothing business to a leather product manufacturer that aims to train skilled craftsmen in Bangladesh and offer new employment opportunities. Borderless Global is also environmentally-conscious and are now operating their business using only natural energy that does not add more CO2 to the atmosphere.

 

 

Summary

 

The covid pandemic has forced us to rethink our working-styles and how a business should function. Similarly, the zebra model demands that we answer the essential question: is profit the top priority for a business? In the modern-day, with more informed consumers, the need for transparency, and a higher level concern regarding business’ impact on their environment, the zebra model seems more promising for long-term, sustained success in 2022 and onwards.