A life cycle view on unicorn start-ups: drivers of long-term high-growth

Purpose The purpose of this study is to explore the exogenous and endogenous drivers of the high-growth of Unicorn start-ups along their life cycle, with a particular focus on Unicorns in the fintech industry.Design/methodology/approachThe study employs an explorative longitudinal analysis with a matched-pair of two cases of Unicorns start-ups with similar antecedent features to understand holistically drivers over the longer term.FindingsHigh-growth patterns over the longer term are the result of a combined industry- and company-life cycle perspective. Drivers and growth patterns vary significantly according to the time of entry in the industry and its development status. The findings are systematised within a set of propositions to be tested in future research.Research limitations/implicationsThe limitations lie in empirical evidence, as the analysis is limited to one-matched-pair. The revealed Unicorns' drivers for long-term growth might encourage future research to further investigate these drivers on a larger scale.Practical implicationsThe study offers practical recommendations for start-ups with high-growth ambitions and advice to policy makers regarding the development of tailor-made support programs.Originality/valueThe study significantly extends extant work on growth and high-growth by examining endogenous and exogenous triggers over time and by linking the Unicorn-life cycle to the industry life cycle, an approach which has, to the best of the authors' knowledge, not yet been applied.