Equity
JP Morgan's head of startup banking says 'Founder Mode' won't get you a unicorn
Sep 18, 2024
Ashraf Hebela, Head of Startup Banking at J.P. Morgan, brings a wealth of experience from his 13 years at Silicon Valley Bank. He discusses the declining unicorn creation rate since 2021 and how 'Founder Mode' might hinder progress. The conversation highlights emerging startup hubs like Seattle, Austin, and Miami, emphasizing the necessity for resilience and passion in today's founders. Hebela also addresses the rise of fintech and robotics investments, pointing out the shifts in the startup ecosystem beyond traditional tech hubs.
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Quick takeaways
- The decline in unicorn creation since 2021 highlights the need for startups to focus on profitability and sustainable business models.
- Founders' traditional credentials matter less than resilience and innovation, emphasizing the importance of team expertise in securing investment today.
Deep dives
The Rise of Unicorns in 2021
The peak level of unicorn creation occurred in 2021, with 346 new unicorns emerging, largely fueled by abundant liquidity in the market during a challenging macroeconomic climate. The pandemic led to significant financial support for both consumers and businesses, resulting in low interest rates and high availability of investment capital. This influx of funds directed into the venture capital sector further stimulated the rise of entrepreneurs, especially those innovating in areas like artificial intelligence and robotics. Overall, the confluence of favorable financial conditions and emerging technologies created a unique environment for startup growth during that period.
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