Dedicated teams: The catalyst for unicorn startups
They say unicorns don’t exist...that they’re just a myth, along with mermaids and dragons. Well, if you think so, you are fantastically wrong. Members of the unicorn startup club – private companies valued at more than $1 billion – will certainly disagree with you. For them, this fairytale became real.
The unicorn club is exploding. Three years ago, only 39 startups were lucky enough to be included on the list. According to CBInsights, as of August 2018, there are more than 260 unicorns around the world.
Obviously, all entrepreneurs dream about joining the unicorn club. Startup founders are bright and hard-working individuals with a one-of-a-kind mindset and global ambitions. This is why they tend to take on more and more responsibilities. But the truth is, it’s almost impossible for an entrepreneur to do everything, especially when business is evolving and it comes time to scale a startup.
That’s when it becomes vitally important to find someone who can help you build a truly successful product and make you an industry game changer. This is exactly what dedicated teams do!
We've gathered some questions and answers that will cover key issues and show you why hiring dedicated developers is a viable option. Let’s take a look.
Word of the day: Unicorn
For startups, achieving unicorn status is a great effort. This mythical creature symbolizes rarity, as a unicorn valuation is $1 billion.
As more newcomers are joining the club, lots of new buzzwords appear. Companies that quickly achieve a $10 billion valuation are called decacorns.
Think this is impressive? Wait until you get to know hectocorns. These are the startups that reached a $100 billion valuation.
Then the question arises: what are the core values they all share? First, they are industry disruptors who never stop learning, developing, and innovating. For instance, Airbnb opposed the traditional accommodation sector, while Snapchat changed the face of social networking.
Second, all unicorns are laser-focused on their customers’ needs and try to leverage new technologies to have a competitive edge. A great example here is Dropbox, who made a significant shift in how we use computers and turned its cloud storage service into a must for almost everyone.
The win-win software development model
As you see, startup success consists of many components. But when the business is booming, it’s becoming very difficult to maintain growth. This is when dedicated teams work.
Today, it’s crucial to think 2-3 steps ahead of the competition and find more resources to catch up with the business world. That’s why more companies are recognizing the value of team augmentation, as it creates a mutually beneficial situation. Here’s why.
Remote teams save time. And time is the single most valuable resource. When working with dedicated teams, entrepreneurs can concentrate on their marketing strategies, looking for investors, and growing business.
Often, startups have an awesome concept but need help with technical implementation. Offshore development companies always move fast in a dynamic market and develop their expertise accordingly. Also, one of their main objectives is to embrace new technologies to meet the growing customers’ demands. In other words, they know how Elixir and Phoenix are connected and how to handle situations when data gets really big.
What is more, outsourcing companies pay a lot of attention to complying with industry standards and security regulations, which is especially important today. Yes, GDPR is definitely nothing new for them.
Overall, software vendors are striving to provide more automated and value-added services, as well as to ensure high availability and going beyond plain coding.
So, the recipe for success is the following:
Dedicated teams’ specialized skills + startup’s deep business knowledge.
Lessons from the Pros
There are many tech giants that collaborated with dedicated teams in order to boost their company’s growth and streamline the processes.
The powerful group of former unicorns, who exited the list due to IPO and acquisitions, decided to choose the dedicated teams model at the early stages. Let’s consider some cases.
Founders of Alibaba, also known as “China’s eBay,” used offshore development services to scale up when their business showed the first signs of growth. Similarly, Whatsapp had a lot of success working with dedicated teams. Back in 2012, the startup had 5 part-time employees, so they extended their existing team to build and launch the product.
Another glowing example is Skype. The legendary messaging application also used to work with remote teams. At the very beginning, the founding team outsourced all the development to become a market leader. As a result, the app quickly gained recognition among the users.
Github founders consulted a developer on questions regarding Gist – a sharing feature inside the service – as such expertise was rare at that time. Eventually, this developer went on to write the backend of Gist.
One of the present-day unicorns who used outsourcing services was Slack, a cloud-based collaboration tool. Initially, the startup hired web designers for beta testing and to improve its logo, web and mobile apps. By outsourcing beta testing, Slack received valuable feedback that helped them make a name in the industry. Now, Slack Technologies is valued at $7 billion and attracts more than one million daily users.
FinTech is in, too! TransferWise, a global money transfer service, relied on remote developers who seamlessly integrated with the core engineering team and helped them accelerate the development of the solution.
Let’s sum it up
The billion-dollar startup was once just a fantasy. However, over the past years, we've seen a rise in unicorns who achieved astronomical growth. How did they make it? As you see, the reasons are many and one of them is working with remote teams.
Want to join the club and become the next Uber or SpaceX? We know everything about dedicated teams! We bet you heard Airbnb's slogan “Belong anywhere.” Our model goes perfectly in line with this message. Wherever you are, we will help you turn dreams into reality.
If you are ready to explore new opportunities, get in touch with us and let your success story begin.