A Founder’s Q&A to Creating a Community-Driven Startup, Attracting Venture Capital Investment, and Going for Unicorn Status

5 min readFeb 21, 2023

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Community-driven co traits & Community ROI formula. Source: Ganas Ventures Founder Deck.

What are community-driven companies?

Community-driven companies are businesses that prioritize the needs and wants of their communities and focus on creating value for their users. These companies often rely on organic growth and referral marketing to attract new users and prioritize the feedback and input of their communities in their decision-making and product development. The success of community-driven companies can be seen in their valuations and investment activity, as well as in their ability to generate outsized returns for investors.

How can you build a community-driven company?

To build a successful community-driven company, founders should focus on creating value for their users and fostering a sense of belonging and engagement within their communities. This can be achieved through a variety of means, such as offering high-quality products or services, providing excellent customer support, and regularly soliciting feedback and input from users.

One example of a successful community-driven company is Canva, an online graphic design platform that allows users to create and share professional-quality designs. Canva has built a strong community of users by providing an easy-to-use platform, regular updates and new features, and a wide range of design templates and tools that can be shared in community. This focus on creating value for its users has helped Canva attract millions of users and secure a valuation of $40 billion.

How can you fundraise from VCs and secure capital?

Once a community-driven company is launched, founders can begin the process of raising capital from venture capitalists and other investors. To do this, founders should focus on building a strong business plan, highlighting community-driven ROI metrics (e.g., CAC, LTV) and the unique value proposition of their company, and tying it back to the potential for outsized returns.

One community-driven company that has successfully raised capital from venture capitalists is Discord, a popular gaming and communication platform. Discord raised $500 million at a $15 billion valuation in 2021. This was partly because it had a strong community of users and focused on creating value for them. By showing how their platform benefits gamers and investors, Discord was able to raise and secure significant capital to continue to grow and evolve.

How can you build a community-driven unicorn (AKA company valued at ≧$1 billion)?

To achieve a valuation of $1 billion or more, community-driven companies must continue to focus on creating value for their users and fostering a sense of belonging within their communities. This can be done in many ways, such as by offering new and innovative products or services, expanding into new markets, and continually improving the user experience.

One community-driven company that has achieved a valuation of over $1 billion is Reddit, a popular social news and discussion platform. Reddit has built a strong community of users by offering a platform for open and honest discussion as well as by regularly updating and improving the user experience. This focus on creating value for their users has helped Reddit attract millions of users and secure an acquisition by Conde Nast in 2006.

A non-exhaustive list of community-driven unicorns. Source: Ganas Ventures Founder Deck.

How can you build a community-driven decacorn (AKA company valued at ≧$10 billion)?

To achieve decacorn status, community-driven companies must continue to focus on creating value for their users and creating a sense of belonging within their communities, while also driving innovation and growth in the market. This can be done through a combination of strong leadership, excellent customer support, and a clear vision for the future of the company.

One company that has achieved decacorn status is Bytedance, the parent company of TikTok. Bytedance has built a strong community of users by offering a fun and engaging platform for sharing short-form videos, as well as by regularly updating and improving the user experience. This focus on creating value for their users has helped Bytedance achieve a valuation of $300 billion and establish itself as a leader in the tech industry.

Creating a community-driven startup, attracting venture capital investment, and achieving unicorn or decacorn status are all possible with the right approach and focus. By prioritizing the needs and wants of their communities and creating value for their users and customers, founders can build successful businesses that generate outsized returns for investors. By leveraging the collective knowledge and expertise of their communities, these companies can drive innovation and growth in the market and achieve the coveted unicorn status.

About Ganas Ventures: Ganas Ventures invests in pre-seed and seed community-driven startups in the US and Latin America. To learn more visit us at ganas.vc.