A unicorn is a privately held startup company with a valuation of over $1 billion. The term was first popularized by Aileen Lee in 2013. Reaching unicorn status is a rare feat, and companies must have an innovative idea, a clear vision for growth, and a solid business plan, as well as a viable way to get their message to venture capitalists and private investors. There are over 1,200 unicorns around the world, as of September 2023.
Key characteristics of unicorn companies include:
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Innovation: Unicorn companies are typically innovative or disruptive companies that are expected to grow quickly.
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High Valuation: A unicorn is a private company with a valuation over $1 billion.
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Rare: Unicorns are scarce and difficult to find, with only 310 in the entire world as of January 2019.
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Uncertainty: Uncertainty is part of the daily routine for unicorn companies, and they learn to take the rough with the smooth and develop a special resilience.
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Disruptive: Unicorns have either disrupted existing markets or created entirely new markets, thanks to technological innovation and clever market strategies.
Investing in a unicorn company can be challenging for average investors, as most are funded by private investors or founders. However, if you’re an investor with a higher risk tolerance than most, investing in a unicorn company could be the right move for you.
