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The Unicorn's Shadow: Combating the Dangerous Myths that Hold Back Startups, Founders, and Investors
Bringing hard data to the way we think about entrepreneurial success, this bold call to action draws on the latest scientific evidence to dispel the most pervasive startup myths and light a path to entrepreneurship for those eclipsed by the hype.
When you think of a successful entrepreneur, who comes to mind? Bill Gates? Mark Zuckerberg? Or maybe even Jesse Eisenberg, the man who played Zuckerberg in The Social Network? It may surprise you that most successful founders look very different from Zuckerberg or Gates. In fact, most startup origin stories are very different from the famous “unicorns” that have achieved valuations of over $1 billion, from Facebook to Google to Uber.
In The Unicorn’s Shadow: Combating the Dangerous Myths that Hold Back Startups, Founders, and Investors, Wharton School professor Ethan Mollick takes us to the forefront of an empirical revolution in entrepreneurship. New data and better research methods have overturned the conventional wisdom behind what a successful founder looks like, how they succeed, and how the startup ecosystem works.
Among the issues he examines:
Which founders are most likely to succeed?
Where do the best startup ideas come from?
What’s the most foolproof way of securing the funding needed to take a company to the next level?
Should your sales pitch really be something out of Hollywood?
What’s the best way to grow and scale your company and create a thriving culture that won’t hinder expansion?
Mollick argues that entrepreneurship is too important, both for society and for the individuals who start companies, to be eclipsed by the shadows of unicorns. He shows we can democratize entrepreneurship—but only by following an evidence-based approach that puts to rest the false narratives that surround it.
When you think of a successful entrepreneur, who comes to mind? Bill Gates? Mark Zuckerberg? Or maybe even Jesse Eisenberg, the man who played Zuckerberg in The Social Network? It may surprise you that most successful founders look very different from Zuckerberg or Gates. In fact, most startup origin stories are very different from the famous “unicorns” that have achieved valuations of over $1 billion, from Facebook to Google to Uber.
In The Unicorn’s Shadow: Combating the Dangerous Myths that Hold Back Startups, Founders, and Investors, Wharton School professor Ethan Mollick takes us to the forefront of an empirical revolution in entrepreneurship. New data and better research methods have overturned the conventional wisdom behind what a successful founder looks like, how they succeed, and how the startup ecosystem works.
Among the issues he examines:
Which founders are most likely to succeed?
Where do the best startup ideas come from?
What’s the most foolproof way of securing the funding needed to take a company to the next level?
Should your sales pitch really be something out of Hollywood?
What’s the best way to grow and scale your company and create a thriving culture that won’t hinder expansion?
Mollick argues that entrepreneurship is too important, both for society and for the individuals who start companies, to be eclipsed by the shadows of unicorns. He shows we can democratize entrepreneurship—but only by following an evidence-based approach that puts to rest the false narratives that surround it.
116 pages, Paperback
Published June 23, 2020
60 people are currently reading
745 people want to read
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Displaying 1 - 16 of 16 reviews
November 27, 2021
There is a whole lot of counter-intuitive, evidence-based knowledge in this book. Founder age doesn't matter, solo-founded startups actually do better on average than co-founded ones, org charts matter, skilled middle managers matter, and my favorite one: past a basic quality screening, "Experts like venture capitalists are not really any better at predicting which early stage companies will succeed than any other reasonably informed individual."
It's telling that a mere 49 souls have rated this book on Goodreads while evidence-free books written by famous VCs and angel investors have thousands of ratings. Humans prefer stories over data. Which itself is useful knowledge in the world of startups/investing (and possibly also a market anomaly to be exploited).
It's telling that a mere 49 souls have rated this book on Goodreads while evidence-free books written by famous VCs and angel investors have thousands of ratings. Humans prefer stories over data. Which itself is useful knowledge in the world of startups/investing (and possibly also a market anomaly to be exploited).
November 8, 2020
Startups, especially tech startups, have become mythologized and have assumed greater-than-life status in American, and increasingly global, popular imagination. It is not hard to understand why this might be the case: as I write this, the economic wealth, influence and power is inexorably moving towards the high tech sector, which in turn is dominated by startups-turned-tech-behemots. And in the world of startups, there are those that seem to capture the most attention and imagination: the so-called Unicorns.
Unicorns are magical and mythical creatures. In the world of entrepreneurship and startups, the word has come to symbolize almost equally enchanting entities - startups that are valued $1 Billion or more. Any casual observer of this space would get the impression that the *only* entities that really matter are the said unicorns. Every entrepreneur wants to create one, and every VC investors is positioning himself to invest in one. However, this monomaniacal obsessiveness with Unicorns is largely misplaced.
In this short and informative book, Ethan Mollick tries to dismantle many myths about the world of startups. One of them that really need adjustment would be the myth that only startups that are started by a team have a chance of success. Not only is this myth not true, but all the more systematic evidence that has emerged in recent years points to the fact that individual founders might in fact be *more* successful overall. The other myth that needs debunking is that of a really-young college-dropout founder. Sure, some of the biggest tech giants seem to fit that mold (Microsoft, Facebook and Apple come to mind), but more often that not the really successful startups are the ones started by more experienced and "traditional" founders.
Finally, the very notion of having to become a Unicorn to be a successful startup is examined. There are many, many very profitable startups that never reach that scale, but are are well positioned for the long-term success.
This is a very thoughtful and insightful book, and would recommend it to anyone interested in the world of startups and entrepreneurship.
Unicorns are magical and mythical creatures. In the world of entrepreneurship and startups, the word has come to symbolize almost equally enchanting entities - startups that are valued $1 Billion or more. Any casual observer of this space would get the impression that the *only* entities that really matter are the said unicorns. Every entrepreneur wants to create one, and every VC investors is positioning himself to invest in one. However, this monomaniacal obsessiveness with Unicorns is largely misplaced.
In this short and informative book, Ethan Mollick tries to dismantle many myths about the world of startups. One of them that really need adjustment would be the myth that only startups that are started by a team have a chance of success. Not only is this myth not true, but all the more systematic evidence that has emerged in recent years points to the fact that individual founders might in fact be *more* successful overall. The other myth that needs debunking is that of a really-young college-dropout founder. Sure, some of the biggest tech giants seem to fit that mold (Microsoft, Facebook and Apple come to mind), but more often that not the really successful startups are the ones started by more experienced and "traditional" founders.
Finally, the very notion of having to become a Unicorn to be a successful startup is examined. There are many, many very profitable startups that never reach that scale, but are are well positioned for the long-term success.
This is a very thoughtful and insightful book, and would recommend it to anyone interested in the world of startups and entrepreneurship.
August 17, 2024
Success stories of unicorns pervade our imagination - the myths are many - and everyone from founders to VCs are living in their shadows, continuously trying to imitate the mythical heroes.
The author, a professor at Wharton, in this book uses data from research on startups to present a counter view - to look beyond the hyped unicorns and instead use a scientific approach based on data and evidence on how to build successful startups - he calls it evidence-based entrepreneurship.
The author uses the example of Elizabeth Holmes, the disgraced founder of the now defunct Theranos to show how she built her image through symbolic management - “black turtlenecks in the style of Steve Jobs, the affected voice and demeanor, the Stanford drop-out resume, and lab coats in pictures” - and suggests that the temporary success was due to her taking advantage of a script other people had written and reinforced long ago.
The author attempts to show that there is more to creating a startup than symbols, but acknowledges that in reality we are stuck in a vicious cycle that reinforces the myths and darkens the shadow cast by past unicorns.
He shares that data and better research methods have overturned the conventional wisdom behind what a successful founder looks like, how they succeed, and how the startup ecosystem works.
He focuses on five areas as he shares data to support his argument - which founders are most likely to succeed, how the best startup ideas are generated, how to secure funding, or create compelling sales pitches (by using the power of storytelling and analogies to help people instantly connect with your ideas), and how to setup the right culture - roles, responsibilities, structure - that drives growth and scale by creating value, delivering value, and capturing value
There are no new ideas presented, it’s a short book that serves its purpose - to bring attention to (if not fully dispel) false narratives, to open the public to the real path of entrepreneurship.
I can say from my experience that there there is no right or wrong way of creating a startup, each has its own journey and success is not driven by any defined templates, but built on sacrifices and a long and often painful journey with many ups and downs… eventually it is the passion, the self belief and determination to bring about a change that makes the difference.
The author, a professor at Wharton, in this book uses data from research on startups to present a counter view - to look beyond the hyped unicorns and instead use a scientific approach based on data and evidence on how to build successful startups - he calls it evidence-based entrepreneurship.
The author uses the example of Elizabeth Holmes, the disgraced founder of the now defunct Theranos to show how she built her image through symbolic management - “black turtlenecks in the style of Steve Jobs, the affected voice and demeanor, the Stanford drop-out resume, and lab coats in pictures” - and suggests that the temporary success was due to her taking advantage of a script other people had written and reinforced long ago.
The author attempts to show that there is more to creating a startup than symbols, but acknowledges that in reality we are stuck in a vicious cycle that reinforces the myths and darkens the shadow cast by past unicorns.
He shares that data and better research methods have overturned the conventional wisdom behind what a successful founder looks like, how they succeed, and how the startup ecosystem works.
He focuses on five areas as he shares data to support his argument - which founders are most likely to succeed, how the best startup ideas are generated, how to secure funding, or create compelling sales pitches (by using the power of storytelling and analogies to help people instantly connect with your ideas), and how to setup the right culture - roles, responsibilities, structure - that drives growth and scale by creating value, delivering value, and capturing value
There are no new ideas presented, it’s a short book that serves its purpose - to bring attention to (if not fully dispel) false narratives, to open the public to the real path of entrepreneurship.
I can say from my experience that there there is no right or wrong way of creating a startup, each has its own journey and success is not driven by any defined templates, but built on sacrifices and a long and often painful journey with many ups and downs… eventually it is the passion, the self belief and determination to bring about a change that makes the difference.
April 27, 2025
The Unicorn’s Shadow by Ethan Mollick is a short dive into the the world of startups. The author examines what empirical evidence actually says about founders, ideas, funding, pitching, and growth. Overall, the book is a bit basic. If you've been in tech awhile, it will be familiar. However, its value is two-fold. First, it gathers useful information in one place. Second, the research backed perspective is helpful for countering stereotypes about what founds and startups look like.
The book challenges the belief that young founders are more successful (the average founder is 42) and that co-founders are critical. Startup ideas are rarely born from sudden inspiration. Instead, success comes from building on existing skills and networks, then systematically testing assumptions through fast, disciplined experiments.
On funding, Mollick notes that venture capital—and the strings that comes with it—is not necessary for most startups. Startups should look at how they want to grow and choose a funding model that matches their desired path. He shows how biases against women and minority founders persist, but also how these gaps create opportunities for founders and investors willing to look beyond the traditional mold.
When it comes to pitching, Mollick provides a concise guide to different types of pitches (the elevator pitch and the pitch deck). He stresses the importance of combining legitimacy with distinctiveness, using clear storytelling and proof of traction rather than relying on charisma alone. More sober, analytical pitches often outperform highly energetic ones with professional investors. It really is about substance over style.
The book closes by emphasizing that strong startups are built through deliberate structure, careful hiring, and culture-building—not by leaning into competitive myths. Thoughtful organizational design and loyalty-driven cultures tend to outperform aggressive, winner-take-all environments.
For those who have been in our adjacent to startup culture, The Unicorn’s Shadow won’t be groundbreaking, but it’s a clear, well-organized reference that brings scattered lessons together and backs them with solid research.
The book challenges the belief that young founders are more successful (the average founder is 42) and that co-founders are critical. Startup ideas are rarely born from sudden inspiration. Instead, success comes from building on existing skills and networks, then systematically testing assumptions through fast, disciplined experiments.
On funding, Mollick notes that venture capital—and the strings that comes with it—is not necessary for most startups. Startups should look at how they want to grow and choose a funding model that matches their desired path. He shows how biases against women and minority founders persist, but also how these gaps create opportunities for founders and investors willing to look beyond the traditional mold.
When it comes to pitching, Mollick provides a concise guide to different types of pitches (the elevator pitch and the pitch deck). He stresses the importance of combining legitimacy with distinctiveness, using clear storytelling and proof of traction rather than relying on charisma alone. More sober, analytical pitches often outperform highly energetic ones with professional investors. It really is about substance over style.
The book closes by emphasizing that strong startups are built through deliberate structure, careful hiring, and culture-building—not by leaning into competitive myths. Thoughtful organizational design and loyalty-driven cultures tend to outperform aggressive, winner-take-all environments.
For those who have been in our adjacent to startup culture, The Unicorn’s Shadow won’t be groundbreaking, but it’s a clear, well-organized reference that brings scattered lessons together and backs them with solid research.
July 30, 2025
A quick and (seems to me) a correct book to break some Unicorn myths. Not much for me to write down as I’ve read a hundred of these. But it did make me think again about the glorious startup days, made me miss them and want to repeat them.
So some random thoughts:
* It’s totally okay to be a founder at 45. And solo founders are just as successful as a group.
* Do not start a company with a stranger, rather someone you already have work with a lot.
* The most successful companies tend to be family businesses. A warm and caring family culture builds loyalty all around.
* When you have an idea for a startup, You have to think ahead just exactly how You are going to measure the smoke test of trying out Your idea - specific numbers! And You are not neutral in receiving the feedback, You tend to see things more positive.
* If you tend to gamble too much, take on money from Your family and friends - You treat this money more securely.
* A business is TALKED into existence. The instruction of the pitch should always be a big bang, a shock.
So some random thoughts:
* It’s totally okay to be a founder at 45. And solo founders are just as successful as a group.
* Do not start a company with a stranger, rather someone you already have work with a lot.
* The most successful companies tend to be family businesses. A warm and caring family culture builds loyalty all around.
* When you have an idea for a startup, You have to think ahead just exactly how You are going to measure the smoke test of trying out Your idea - specific numbers! And You are not neutral in receiving the feedback, You tend to see things more positive.
* If you tend to gamble too much, take on money from Your family and friends - You treat this money more securely.
* A business is TALKED into existence. The instruction of the pitch should always be a big bang, a shock.
March 6, 2023
I listened to the audiobook narrated by Michael Butler Murray at 1.3 speed for my personal listening preference.
The information in this book is very good… surface level information about launching a startup. What this book does well is give the information for its audience to then search for further answers to their questions, and follow up questions to information the author, Ethan Mollick, provides.
With the book being so short, and to the point with a small number of topics which should be practically tested, I cannot say how directly valuable the information in the book may be to each individual reader.
I would lightly recommend this book as it does have a fair amount of information to take into consideration, but such information may not be explained in depth enough, or completely useful for every reader/listener.
The information in this book is very good… surface level information about launching a startup. What this book does well is give the information for its audience to then search for further answers to their questions, and follow up questions to information the author, Ethan Mollick, provides.
With the book being so short, and to the point with a small number of topics which should be practically tested, I cannot say how directly valuable the information in the book may be to each individual reader.
I would lightly recommend this book as it does have a fair amount of information to take into consideration, but such information may not be explained in depth enough, or completely useful for every reader/listener.
June 29, 2023
“In the beginning, a startup is just words. A business is talked into existence.”
Pitching!
Takeaways:
- partners do not always make your business more futureproof
- culture lasts after the founder leaves
- Only raise funding if it fits your strategy, it comes at a cost. Crowdfunding and accelerators are a good idea.
-Women are treated differently in VC meetings, asked different questions . “How will you prevent loss?” As opposed to “how will you achieve gain?”
One way around this is to have women help other women get funding.
Takeaway: seek female VC funders, call out sexism. GOLDEN SEEDS!
Pitching!
Takeaways:
- partners do not always make your business more futureproof
- culture lasts after the founder leaves
- Only raise funding if it fits your strategy, it comes at a cost. Crowdfunding and accelerators are a good idea.
-Women are treated differently in VC meetings, asked different questions . “How will you prevent loss?” As opposed to “how will you achieve gain?”
One way around this is to have women help other women get funding.
Takeaway: seek female VC funders, call out sexism. GOLDEN SEEDS!
October 14, 2022
This book is really short, which I appreciate; it sticks to its focus and doesn't pad its length. The myth busting here is excellent, 5/5. It then devolves a bit into formulaic entrepreneurship steps, which I find less interesting, 3/5, but your mileage may vary. Even in the lest interesting parts, the author cites research and data to demonstrate cogent take-aways for entrepreneurs. I really appreciate that so much of this is rooted in data, including Effectuation, my favorite corpus of entrepreneurial research.
December 11, 2024
I've been into the author's musings on AI and picked up this book because it was really short and available through Libby. One of my biggest takeaways was that the average age of entrepreneurs is quite a bit older than you would think - like 40s, 50s. There's still time to put your hair-brained idea into practice. I also appreciated some of his points on idea generation and the idea of a minimum viable product - not waiting until something is perfect before unveiling it but simply getting it out there and making iterative changes based on real world feedback.
July 27, 2020
This is a nice book about basics of starting a company. Although there is no formulae for success, still there are some basic points at least to read about and decide if the journey is for you. Walking through this path is a tough choice and definitely needs an important component that no one can teach. I call it desire to succeed
September 10, 2021
This book is very enlightening. It was everything that I expected plus more. Every aspiring entrepreneur should read this book to strip away the misconceptions of startups. It will help you understand there is no such thing as the monomyth in entrepreneurship. Overall a well-written book.
April 16, 2022
funny facts :)
April 12, 2024
Short, insightful.
The title promises to combat myths and the book actually delivers, I love seeing outdated stereotypes (e.g solo founder startups are less successful) fly out the window.
The title promises to combat myths and the book actually delivers, I love seeing outdated stereotypes (e.g solo founder startups are less successful) fly out the window.
March 1, 2025
Very different than what i expected. not what i was looking for.
March 30, 2025
Great advice for startups
April 5, 2024
Great short book dispelling a lot of common misconceptions and general fantasized expectations from both the public and investors who sometimes make structured rules based on conventions when they are actively trying to be contrarian (but ending up hilariously and simultaneously the same).
I did feel towards the second half that much of the data driven approach can also be misleading, maybe that's my own bias on not taking academic data as a proxy for truth, seeing how often academics are far from the real world and drowning in theories, statistics, and processes instead of experiencing things first hand.
I did feel towards the second half that much of the data driven approach can also be misleading, maybe that's my own bias on not taking academic data as a proxy for truth, seeing how often academics are far from the real world and drowning in theories, statistics, and processes instead of experiencing things first hand.
Displaying 1 - 16 of 16 reviews