Gukesh Dommaraju, an 18-year-old chess grandmaster, recently dethroned reigning world champion Ding Liren to claim the title of 2024 World Chess Champion. This remarkable achievement shows not only his exceptional skills but also the strategic mindset and disciplined approach that can offer lessons to entrepreneurs and to inspire them to excel in their own ventures.
Here are three powerful lessons entrepreneurs can draw from this young champion’s journey, and how these principles can pave the way to building unicorns.
#1. Resources Matter – Unless You’re Finance-Smart.
India, despite its population of nearly 1.4 billion, has struggled to excel in many sports due to limited resources. A significant factor is the disparity in resources allocated to sports compared to countries like the U.S. and China. While India spends an estimated $150 million to $200 million on sports, the U.S. and China allocate $15 billion to $20 billion and $20 billion to $30 billion respectively. Furthermore, many Indian families with limited financial resources prioritize education over sports. As a result, sports that require fewer resources like chess and cricket, which also offer lucrative opportunities, are often the focus. Gukesh’s parents exemplified the power of finance-smart thinking by bootstrapping his chess career by tapping savings and securing loans from family and friends.
Entrepreneurs can adopt the same principle. While venture capital (VC) dominates Silicon Valley, most billion-dollar entrepreneurs outside Silicon Valley thrive without it. And in Silicon Valley, they delay it. Research shows that among 85 billion-dollar entrepreneurs:
· About 88% of Silicon Valley’s billion-dollar entrepreneurs used VC (The Truth About VC ) – but most delayed it to retain control of their venture.
· Outside Silicon Valley, 91% avoided VC.
The key lies in being finance smart. Billion-dollar entrepreneurs outside Silicon Valley mainly focused on finance-smart skills and strategies to grow more with less and to maintain control over their ventures. They leveraged cash flow, cash-flow-based financing, strategy-driven financing, and non-controlling equity financing (Finance Strategies of Billion-Dollar Entrepreneurs). This approach mirrors Gukesh’s journey – maximizing limited resources and prioritizing control.
#2. Skills Matter — Unless Wealth Isn’t Key.
Chess is a skill that can be taught and refined through dedication and guidance. Indian grandmasters like Vishwanathan Anand have paved the way for future generations by sharing their knowledge and inspiring others to pursue the game. Gukesh’s success didn’t happen by chance – it was the result of talent nurtured through years of practice, learning from the best, and constantly refining his craft.
Similarly, unicorn-entrepreneurship skills and strategies can be both taught and learned. Entrepreneurs who thrive without VC develop core competencies—strategic thinking, resourcefulness, and financial acumen—allowing them to bootstrap and scale effectively.
Look at some of the most iconic billion-dollar entrepreneurs:
· Sam Walton started his business (that eventually morphed into Walmart) with a $25,000 loan – no VC involved.
· Dick Schulze founded Sound of Music (that eventually became Best Buy) with just $9,000 in savings.
· Michael Dell started Dell with financing from his family.
· Richard Burke launched United Healthcare with a $40,000 loan against his home.
· Gaston Taratuta built Aleph into a global advertising giant with a modest $2,000
· Joe Martin founded Boxycharm.com, a beauty subscription box company, with profits from his first venture that he started with only $375 from his personal savings – and no VC.
These entrepreneurs relied on smart strategies, financial discipline, and a relentless focus on building their businesses from the ground up – without VC.
#3. Passion Matters – Unless Success Isn’t the Goal.
At the age of 7, Gukesh demonstrated the passion and drive that would ultimately propel him to the top of the chess world. This passion, and learning the skills, set the foundation for his journey to becoming a world champion.
This level of passion is equally critical in entrepreneurship. Many billion-dollar entrepreneurs, like those mentioned above, didn’t rely solely on external funding or external validation. Instead, they trusted their skills, strategies, and vision, and were confident in their ability to lead their ventures to success.
Equally important, age was never a barrier. Many billion-dollar entrepreneurs, including Bill Gates, Steve Jobs, Michael Dell, Mark Zuckerberg, and Dick Schulze (Bootstrap to Billions at www.dileeprao.com), began their entrepreneurial journey as teenagers or young adults. Their youth didn’t hold them back. Their skills in emerging industries helped them succeed.
MY TAKE: The business world often glorifies VC funding as the key to success. Reality tells a different story. In fact, 76% of billion-dollar entrepreneurs never used VC, and 94% delayed or avoided VC altogether to retain control of their ventures and grow without VC interference. To develop more growth ventures and unicorns, especially outside Silicon Valley, entrepreneurs need to focus on finance-smart strategies like strategic bootstrapping, cash-flow based growth, strategy-based financing, and non-controlling equity to scale effectively while maintaining control.
Most importantly, passion is critical. Gukesh’s focus and determination drove him to the top of the chess world. Entrepreneurs with passion and the right skills can do the same with their ventures.
VC is optional. Your passion, strategy, and skills are not.
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