In late 2013 Cowboy Ventures did an analysis of U.S.-based tech companies started in the last 10 years, now valued at $1 billion. They found 39 of these companies. They called them the “Unicorn Club.”
The article summarized 10 key learnings from the Unicorn club. Surprisingly, one of the “learnings” said that, “…the “big pivot” after starting with a different initial product is an outlier. Nearly 90 percent of companies are working on their original product vision. And the four “pivots” after a different initial product were all in consumer companies (Groupon, Instagram, Pinterest, and Fab).”
One of my students sent me the article and asked, “What does this mean?”
Since the pivot is one of the core concepts of the Lean Startup I was puzzled. Could I be wrong? Is it possible pivots really don’t matter?