Techstars

Episode 9 | Why Chasing Unicorns Weakens Startup Communities

In this episode Chris Hiveley debunks the prevailing myth that a single unicorn can transform a startup ecosystem. He argues that the obsession with birthing a billion‑dollar company is a lazy, even damaging, strategy that diverts attention and resources from the broader pool of early‑stage founders who actually drive daily activity. Hiveley points to data and real‑world examples—Charlotte, Jacksonville, and Norwalk—all home to unicorns yet ranking only mid‑tier on the Kaufman Index and Startup Genome. With just over 800 U.S. unicorns in 2025 out of millions of startups, the odds of a city’s fortunes hinging on one firm are vanishingly small. He also recounts a Raleigh‑Durham meeting where leaders proposed rallying around a single company, a proposal he likened to a 1930s backroom deal. The host stresses that ecosystems thrive like a farm system: a pipeline of tinkerers, early‑stage teams, growth‑stage firms, and eventually, perhaps, a unicorn. He urges breakout companies to give back—reinvesting time, capital, and mentorship—otherwise they become isolated islands. Practical advice includes counting active founders, boosting connection density, and celebrating incremental milestones rather than only headline‑grabbing exits. The takeaway for community builders is clear: plant thousands of seeds, nurture them with mentorship and networks, and let the occasional unicorn emerge organically. By focusing on the health of the entire stack, regions can build resilient, long‑lasting entrepreneurial ecosystems that attract talent and capital without relying on a single lottery‑ticket success.