InsureNXT-Unicorn session_Final 21 April 2021.pdf

Sabine VanderLinden
CEO & Managing Partner
NXT | GEN
Business Models
Lessons from the world
of Unicorns

2
You can't connect the dots looking forward;
you can only connect them looking
backwards. So, you have to trust that the dots
will somehow connect in your future. You
have to trust in something - your gut, destiny,
life, karma, whatever. This approach has
never let me down, and it has made all the
difference in my life.
Steve Jobs
“
”
2

3
Unicorns are high growth ventures with a
valuation of over $1Bn. Based on CB
Insights a variant of Unicorns includes
Decacorns, or companies valued at over
$10 billion (e.g., Paytm, Grab) and
Hectacorns, or companies valued at over
$100 billion (e.g., Airbnb, Coinbase,Tesla).
What are Unicorns… and else?
© Alchemy Crew Ltd 2021. All rights reserved

4
USA
e.g., Bright Health
60%
5%
U.K.
e.g., Babylon,
Zego
21%
China
e.g., SenseTime
Where are Unicorns coming from?
2%
Israel
e.g., Cybereason 4%
India
e.g., Zomato
3%
Germany
e.g., WeFox
Brazil
e.g. Nubank
1%
2%
South Korea
e.g., Toss
1%
Japan
e.g., Geek+
1%
Singapore
e.g., Trax
1%
France
e.g., Vestiaire
Collective

5
Est. 800 businesses over
$1bn
Avg. 9-12 new
Unicorns created per
month
5 years avg. post
series A to become
a Unicorn
was a key year for
Unicorns
Received $150m to
$210m investment
before Unicorn status
Received funding from avg.
18 investors to reach their
Unicorn status
2019
The Facts

© Alchemy Crew Ltd 2021. All rights reserved 6
0
1
2
3
4
5
6
7
8
9
10
0
20
40
60
80
100
120
140
160
180
200
2016 2017 2018 2019 2020 2021 Q1
# unicorns created Avg years to become a unicorn Avg years to become a unicorn post series A
Number
of
unicorns
Number
of
years
95
105
173 177
85
130
7.4
9.6
8.2
7.5 7.4
7.8
3.4
4.2
4.5
5.1 4.7
4.9
It takes a total 7-10 years for a leading market player to
achieve Unicorn status

0
1
2
3
4
5
6
7
8
9
10
0
20
40
60
80
100
120
140
160
180
200
2016 2017 2018 2019 2020 2021 Q1
# unicorns created Avg years to become a unicorn Avg years to become a unicorn post series A
Number
of
unicorns
Number
of
years
95
105
173 177
85
130
7.4
9.6
8.2
7.5 7.4
7.8
3.4
4.2
4.5
5.1 4.7
4.9
Great Year
It takes a total 7-10 years for a leading market player to
achieve Unicorn status

Genomic, cell therapy (e.g., Indigo)
Electric & autonomous vehicles (e.g., Tesla)
Cyber security (e.g., Darktrace, ID.me)
Payment and wallets (e.g., Grab, Stripe)
Online groceries (e.g., Instacart, SayWee)
Warehouse automation (e.g., Geek+)
Gig economy and ride hailing (e.g., Grab, Uber)
Logistic marketplaces (e.g., Lalamove)
Residential real-estate (e.g., side, Pacaso)
Online trading platforms (e.g., Robinhood)
New economy -> Top 10 most funded business models

5 5
4 4
3
8
4
8
11
12
11
15
20 20
39
Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21
# of new Unicorns spiked last month!
Monthly
incremental change

5 5
4 4
3
8
4
8
11
12
11
15
20 20
39
Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21
# of new Unicorns spiked last month!
Monthly
incremental change
Is it all because of recent
accelerated digitization trends?

Example: 6 Unicorns that reached the new status last month
Blockchain
London (10 years)
Crypto wallet service that visualize crypto
currency transactions. Buy, Hold, Use Crypto.
Raised: $490 M - $300 M series C
Valuation: $5.2 BN
Employees: 746
Focus areas: FinTech - Consumer Finance –
Technology Infrastructure
Zego
London (5 years)
Mobile first commercial motor insurance for
the self-employed drivers and fleet owners.
Raised: $202 M - $150 M series C
Valuation: $1.1 BN
Employees: 253
Focus areas: InsurTech – Auto eCommerce –
Enterprise Tech
Starling Bank
London (7 years)
Multi-currency digital bank for consumers and
businesses made available at one’s fingertips.
Raised: $803 M - $445 M series D
Valuation: $1.9 BN
Employees: 817
Focus areas: FinTech – Digital Natives –
Technology Infrastructure
The Zebra
Austin (9 years)
Multi-product comparison site combining online
and agent distribution across several US states.
Valuation: $1 BN
Employees: 285
Focus areas: InsurTech – Distribution – Multi-sided
Marketplace
Coalition
San Francisco (7 years)
Comprehensive cyber protection combining
cyber, insurance and a digital platform.
Valuation: $1.75 BN
Employees: 178
Focus areas: InsurTech – Cyber – Enterprise Tech
Klarna
Stockholm (14 years)
Online platform that personalizes exclusive
deals with multiple payment options.
Raised: $2.6 BN - $1 BN series H
Valuation: $31 BN
Employees: 4k
Focus areas: Retail – FinTech – Enterprise Tech
InsurTechs

Tangible asset
builders
Build, develop and rent physical
assets to make, market,
distribute and sell physical
things.
Example: Tesla, SpaceX,
Rivian, Juul
Types of Unicorn business models
Differentiation comes from combining unique business model characteristics and a variety of value-creation patterns able to yield long term
competitive advantage. Many Unicorns now embed circular economy business characteristics to fulfil fast-moving sustainability requirements.
1
On-Demand service
providers
Hire individuals able to provide
value-added services to
customers or charge for billable
hours as-a-Service.
Example: Gojek, Ofo, Hopin,
Paytm, Grab, Careem
Advanced technology
architects
Develop, market and sell
intellectual property such as
advanced technologies,
software and analytical models.
Example: Palantir, UiPath,
Waymo, ID.me, SenseTime
Marketplace & network
orchestrators
Combine the power of networks in
which participants share in the
value created from selling
products, services & building
commercial relationships.
Example: Coalition, The Zebra,
ShareChat, Zego
2 3 4

What do they do well?
1
2
3
4
5
Narrow focus: They are doing a very few things extremely well. They develop one single
centralized digital platform. And the business model becomes an integral part of the
company’s success.
Hyper personalized, hyper localized. Still international: Use digitization to make the
customer engagement processes leaner, better, cheaper and more stakeholder aligned.
Lead by serial entrepreneurs: Continuous change, adaptation, transformation and
execution is part of the business DNA. Experienced leaders have often learnt from multiple
iterations and business failures.
Workforce of the future: Unicorns always start small with very few employees before
scaling their business model with digital and intangible assets.
Backed by astute financiers: Strategic investors provide key resources which allow them
to create the pressure to perform and ensure the build of a successful and exit-able business.

Auto
Tech
Insurance Finance
§ Friction-free & embedded: Emerging digital trends remove the existing
boundaries from traditional siloed sectors and business models.
§ Underserved segments: Emerging customer segments are redefining new
engagement models and how sectors overlap and re-bundle.
Example
But not that simple…

But not that simple…
Auto
Tech
Insurance Finance
§ Friction-free & embedded: Emerging digital trends remove the existing
boundaries from traditional siloed sectors and business models.
§ Underserved segments: Emerging customer segments are redefining new
engagement models and how sectors overlap and re-bundle.
Are often ecosystem-led value creators and network
orchestrators that link their products or services to IoT to
monitor, track and share as part of a series of engagements.
Able to achieve:
§ 2 to 4 times higher valuation than their peers, compared
with the revenue they generate
§ faster growth
§ larger profit margins by displacing costs through the
ecosystems they built and partners they trust
§ higher returns on assets
Only 5 percent of companies globally.
Why!
§ Gain strategic access to emerging technology and talent
§ Design new set of capabilities
§ Rely on intangible, digital and non-owned assets
§ Thrive through knowledge and strategic relationships.
Outperformers…

Sabine is a co-founder, CEO and Managing Partner of Alchemy Crew a
venture validation studio using open innovation, ecosystem thinking and
parallel experimentation techniques to accelerate the identification,
validation and commercialization of new world products and services
supported by game changing business models.
Sabine was the CEO & co-founder of Startupbootcamp InsurTech (UK) &
Hartford’s InsurTech Hub Accelerator (Hartford, CT, USA) where she worked
with over 30 corporate insurers, accelerated in 70+ startup ventures, helping
them raise over $100m in funding.
She is a pioneer in building innovation ecosystems, a co-editor of bestseller
The INSURTECH Book, a multi-award winner and a top #50InsurTech
Influencer. She is an honorary senior visiting fellow on InsurTech Disruption
at The Business School (Formerly CASS).
About Sabine:
17
Twitter: Sabine VdL
LinkedIn: Sabine VanderLinden

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InsureNXT-Unicorn session_Final 21 April 2021.pdf

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