For startups, a “unicorn” is a private company valued at over one billion dollars. Learn what makes these rare ventures so valuable and why they capture the imagination of founders and investors alike.
Explainers
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Full Transcript
Behold the unicorn! This creature belongs to the world of fantasy, of course… but in the world of startups, unicorns are sometimes real. A unicorn is a privately held, venture-backed startup with a reported valuation of over one billion dollars. Coined in 2013, the term reflects how rare these companies once were. Since then, the cohort of unicorns has grown to over 1,200. And it includes companies that make apps and products you may interact with every day. Perhaps you used one to find this video…
It can be tricky to determine the value of a startup that has not gone public and may not even be profitable. Yet understanding what makes unicorns valuable can provide insights for the majority of startups that will never reach unicorn status. And founders and investors will keep chasing these elusive entities… even if they turn out to be covered in fairy dust.
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