Three key factors which any potential investor need to consider while considering an investment in any enterprise are :
1. A definite and lasting 'unique competitive advantage' commanded by that enterprise in its industry,
2. Able top-level team running the show committed to ethical and transparent corporate governance practices, and
3. Clear path-to-profitability which is demonstrated on a consistent basis periodically via beating the market expectations.
These three factors also need to be kept in mind by all those tech based unicorns, which have either already listed or are about to be listed on our stock exchanges.
Their astronomical valuations simply on the basis of some 'hidden value' seen by some investors, is indeed worth applauding, but this is where their main challenge lies.
They now need to convince their innumerable shareholders and other key constituencies, that their 'unicorn status' was not devoid of any merit.
Thus, by first getting their act together in terms of strategic planning backed by laser-like execution, and then consistently interacting with the media and various analysts, to effectively demonstrate that they are on the right track to deliver superlative returns to their shareholders, and without compromising on any ethical and transparent corporate governance standards, would such unicorns command the necessary confidence among all their key constituencies, both internal and external.
That, by commanding such kind of confidence, would such enterprises become the latest icons of our corporate world is anyone's guess.
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