Ever wonder why some entrepreneurs build billion-dollar companies while most do not? More intriguingly, ever wonder why only 6% of billion-dollar entrepreneurs succeeded with the VC Mindset while 94% did not? Most people are not aware that there are two mindsets to building unicorns. Billion-dollar entrepreneurs utilized two distinct mindsets to build unicorns – the well-known VC Mindset and the less-hyped Unicorn-Entrepreneur (UE) Mindset, which more than 90% of billionaires adopted.
The VC Mindset assumes that entrepreneurs need VC to start, launch, and build their venture. Entrepreneurs seek VC to fuel growth and typically do not prioritize control of the venture and the wealth it creates. The VC mindset focuses on seeking capital because the strategy is capital-intensive. VCs often replace founders with professional CEOs, diluting the founder’s control. Although only 6% of billion-dollar entrepreneurs used the VC Mindset, it remains dominant in incubators, business schools, and Silicon Valley. eBay is an example of the VC Mindset, where the founder was diluted by VCs and a professional CEO.
The UE Mindset, on the other hand, focuses on venture growth, capital efficiency, and control of VCs by the entrepreneur. Billion-dollar entrepreneurs using the UE Mindset include Sam Walton, Bill Gates, Jeff Bezos, and many others. The UE Mindset delays seeking VC until after proving leadership skills to ensure the entrepreneur stays as CEO and retains control over financiers. It emphasizes creating wealth and controlling it, with 94% of billionaires adopting this mindset, which is 16 times higher than those using the VC-Mindset.
Entrepreneurs can benefit from the UE Mindset as it emphasizes skills that can be taught to everyone, helps entrepreneurs get to Aha (proven potential) before seeking VC, and allows entrepreneurs to retain control and cut dilution. The UE Mindset helps entrepreneurs build wealth and control their venture significantly reducing the risks associated with VC funding. While the VC Mindset may seem like a shortcut to riches, the UE Mindset allows entrepreneurs to control their wealth creation and their venture.
Skills that benefit everyone are emphasized in the UE Mindset, which can help entrepreneurs succeed outside Silicon Valley and in any industry. VCs wait for Aha, the UE Mindset helps entrepreneurs get there by equipping them with the skills and strategies to prove their potential before seeking VC. Ultimately, the UE Mindset allows entrepreneurs to retain control and cut dilution, keeping more of the wealth they create compared to those who secure early VC funding. Becoming wealthy is the goal, and the UE Mindset allows entrepreneurs to achieve this while controlling their venture and the wealth it generates.
