Cockroach Startup Mode Definition

In business and more specifically in startups, they give weird names to certain types of companies …
Last time i wrote about unicorns, today it is cockroaches … What is exactly a cockroach mode or company?

The term cockroach is a term given by investors to very slow growth startups or businesses. The kind of startups that are kind of more resilient and just refuse to die (or fail fast).

Why the term cockroach?
Maybe it was coined as a way to state that these kind of businesses are undesirable for investors.
Or maybe due to the resilience part and not accepting to just die (just like roaches).

Cockroach mode, is a mode that a startup fall into, and not to chose to be into. Being lean, or bootstrapping, is not the same as cockroach mode, not even close.
A cockroach startup is a startup that have already raised funds, failed to grow or deliver on promise, failed to raise again, but managed to just stay existing without simply shutting doors. It might be profitable or not, but it is surviving.

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Abdallah Alaili

I'm a serial entrepreneur (mostly tech) and micro-investor (tiny), this is a blog to learn from other entrepreneurs and spread the wisdom to many more. You can find me on: Instagram - Twitter - Linkedin - more about me