Following the journey of a unicorn at BBVA Open Talks: the experiences of successful entrepreneurs on the path to growth

A unicorn is much more than a mythological creature. In 2013, Aileen Lee, a venture capitalist and leader of Cowboy Ventures, first applied this term to startups that reach a valuation of 1 billion dollars (USD). While the concept initially referred to the scarcity of companies with this profile, a few years after the venture capital boom, the number of unicorns has rapidly increased.

According to CBInsights, as of March 2024, there were over 1,200 unicorns worldwide, with a total of 51 countries and regions represented in the club. The United States leads undisputedly (54.1%), followed by China (14%), India (5.8%), the United Kingdom (4.1%), and Germany (2.5%).

In the latest BBVA Spark Open Talks, the experiences, challenges, and keys to success of three unicorns were explored. The event was moderated by Verónica Ruiz, Head of BBVA Spark Spain, and featured the participation of Juan de Antonio, founder and CEO of the Spanish tech mobility company Cabify; Sebastián Noguera, co-founder and CEO of the ‘proptech’ Tuhabi; and Leonardo Ramos, country manager in Mexico and Colombia of the Mexican ‘fintech’ Clara.

The importance of having a clear purpose

Business success is not limited to financial profitability. Behind every thriving company, there is a genuine purpose and a real problem to be solved. By addressing a need or tangible challenge in the market, companies must provide value to their customers and differentiate themselves from the competition. “You all clearly identified that a large part of your roadmap was based on understanding that the solution arises from a real problem, and this concept is fundamental,” commented Verónica Ruiz of BBVA Spark to the participants at the event.

Juan de Antonio, founder and CEO of Cabify, agreed that having a clear purpose is key. Initially, his goal was to “improve the quality of life in cities” with a company dedicated to electric vehicles: “I observed that vehicles were used very little time, and the idea of exploring alternatives that would allow sharing these resources efficiently emerged. From the purpose of creating a significant change in how we move around, I saw the opportunity to pivot towards a business model focused on vehicle sharing.” Founded in 2011, Cabify entered the unicorn club in 2018. Now, it operates in seven countries, has over 50 million users, and more than one and a half million driver partners and taxi drivers.

Sebastián Noguera also pursued a clear purpose in founding Tuhabi, a digital platform that facilitates the process of buying and selling homes, which was born in Colombia and expanded into Mexico. It has been a unicorn since 2022. “I faced a surprising challenge: the mortgage process took between four and six months due to lack of infrastructure,” explained the co-founder of Tuhabi. “The reality is that, although the product started off quite poorly, it had a very high demand because we solved a real problem for Colombians.”

Challenging moments that lead to success

The journey to unicorn status in the business world is marked by obstacles. Leonardo Ramos outlined during the event some of the challenges Clara faced, a digital financial platform offering solutions to businesses born in Mexico at the beginning of the pandemic. “This event marked a crucial point in our path to success. We faced various challenges, especially as a ‘fintech’, where preparation is fundamental given the financial and legal nature of the business,” Ramos detailed.

In the months following the pandemic, Clara had to adopt a new approach to continue its growth path. “The economic change and adjustments in investment strategies led us to rethink our growth strategy, prioritizing profitability. This change involved a transformation in our mindset to focus on return on investment in every decision.” With that mindset, Clara managed to move forward, and now more than 10,000 large companies use its services. “Fortunately, we adapted, and now we value profitability and sustainable growth at Clara,” Ramos added.

Adapting to a changing environment has also been crucial in the case of Tuhabi. “Three months after starting to grow, we faced a difficult decision: drastically cut costs or lose our employees,” Noguera explained. “To our surprise, 100% of the team agreed to reduce their salaries to keep their jobs. This display of solidarity strengthened our company culture and demonstrated that we were all united in this dream.”

Navigating profitability: keys to sustainable growth

Profitability is a critical factor on the path of any company towards sustainable success, as it not only drives financial growth but also ensures long-term viability. “A business becomes a business when it generates revenue. Until then, it’s a project that usually depends on external sources of funding,” noted Juan de Antonio.

The founder of Cabify detailed how his business has grown. “We have scaled the company, reached different levels of revenue, and validated profitability at each stage. We have danced with profitability, surpassing it and seeking growth again. This phased approach has allowed us to demonstrate that we can achieve profitability at different levels of the company, as supported by our initial spreadsheet.”

Sebastián Noguera provided an additional insight. For him, the most important thing if one intends to grow a sustainable or profitable business is to “not deceive oneself.” “Many entrepreneurs may be tempted to believe in illusory narratives, but it’s essential to understand the real value of each transaction and have clarity about unit economics,” he clarified.

Unicorns: just a market valuation?

The quest to become a unicorn is perceived as a fundamental milestone, a symbol of success and entrepreneurial achievement. However, for the three entrepreneurs who participated in the BBVA Open Talks, it is more of a label than a real measure of success.

“Reaching unicorn status is a market validation,” said Leonardo Ramos of Clara, which has become the youngest and fastest unicorn in the history of Latin America. “We see it as a positive recognition, although we also understand that it can serve as a reference for other entrepreneurs.”

“The term unicorn is more of an external label than a real measure of our progress. We focus on solving the challenges we set out to address and providing genuine value to our customers. We appreciate external valuations as they help us obtain financing, but our true success will be achieving our goals and fulfilling our vision,” explained Sebastián Noguera of Tuhabi.

Juan de Antonio also attaches little importance to unicorn status. “It’s a label they put on you, but it doesn’t necessarily have content.” For all these entrepreneurs, it is essential to discard the myths and romanticism of entrepreneurship. “In reality, entrepreneurship is a constant pain for the few of us who like pain,” concluded the founder of Cabify. The experience of these three successful unicorn leaders demonstrates that they have managed to turn that pain or purpose into successful businesses. Their journeys can serve as inspiration to many other entrepreneurs.