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Unicorns REALLY exist!

This title may be deceptive… but no. This article is not an article about the mythical creatures we so cherish. It is about a Unicorn company in the world of startups. So what is a Unicorn? “Unicorn” is a term used in the industry of venture capitalism to describe a startup that is privately held with a value of over 1 billion dollars. Aileen Lee, the founder of Cowboy VC and a venture capitalist was the first person who popularized this term. At present, there are more than 600 unicorn companies around the world. Some notable examples include companies such as SpaceX, Robinhood, Airbnb, and Instacart.

Understanding the term “Unicorn”

As we all know, Unicorns are mythical creatures, and finding them in the wild is impossible. Much like this, Alieen Lee observed something while looking at the tech startups founded in the 2000s. She discovered that only 0.07% of them were able to reach the 1 billion dollar valuation mark. Companies that could reach the 1 billion valuations were so rare that finding one could be imagined as finding a unicorn in the wild. Hence, the name “unicorn”. Decacorns are companies that are valued at over 10 billion, but unicorns take the spotlight in this discussion.

The first unicorn according to Lee, was founded in the 1990s. Alphabet- then Google – was noted as the super unicorn of the group with a valuation exceeding a hundred billion dollars! In the 2000s, many unicorns were born. Facebook was considered the super unicorn of the 2000s.

Since the time Lee ever immortalized the term “unicorn” in her article, it has been used to date to refer to startups with high valuations questionably supported by their fundamental finances. Since the 2010s, 80 private companies have raised financing at valuations over 1B dollars. This drove investors nuts. Last-stage investors scurried desperately with a FOMO trying to invest in a possible unicorn that can arise. Although there is an everlasting debate that has come about due to the rise of unicorns. “Is the technology sector’s unicorn rise due to the reinflation of the dot-com bubble of the late 1990s?” Some experts argue stating the number of increases in new companies being valued above 1 billion dollars is a clear sign of froth in markets. Some experts state that a large number of companies with high valuations is a reflection of a new wave of technologically driven productivity, similar to the invention of the printing press nearly six hundred years ago.

How do the unicorns get their valuations?

Generally, the value for a company is based on how investors and venture capitalists feel they will grow and develop in the future. This kind of “forecasting” shows that their valuations have nothing to do with how they perform in the market financially. It is normal to find many of these unicorn companies not generating any profit when they first start functioning. Venture capitalists and investors may come across some issues while forecasting. The process can be complicated if the company they are evaluating is a first of its kind. There may be no other business model with which to compare. This can make the process of valuation somewhat complicated.

Other categories of growing companies.

Every startup has goals of becoming valued at over a billion dollars. Being a unicorn is every horse’s dream. Apart from unicorns, there are other classifications of companies that do well.

Minicorn: A minicorn startup usually has a valuation of over 1 million dollars and are on their way to becoming a unicorn.

Soonicorn: Startups with the potential to enter the unicorn club are called the Soonicorn. They are mostly funded by Angel investors or venture capitalists usually based on the scope of future projects or perceived valuations. It is always more than the startup’s real worth. When a larger company acquires a startup, it gives them a valuation of more than their actual net worth.

Unicorn: A privately held startup that is valued at billion dollars or more.

Decacorn: A startup that has a current valuation of over ten billion. There are presently eighteen decacorns in the world. Ten are situated in the United States of America. Decacorns are unicorns with wings and superpowers. They have a fantastic growth rate, distinctive business model, and a revenue model.

Hectacorn: This is the dream. A tech company valued over a hundred billion dollars. These are usually called Super Unicorns. Google and Facebook when they were private startups were determined to be Super Unicorns as discussed before.

How to invest in Unicorns.

Unicorn is a term used to describe a privately held startup. Companies like amazon and google are not considered unicorns as they have gone public. However, Amazon and Google did start as a unicorn company before they went public. If you are a private investor or a venture capitalist, you can go ahead and invest. Unicorns being startup companies do not usually accept small or moderate-sized investments. If you have lots of savings, take calculated measures before investing. The best way for a person to invest is by tracking the growth of these unicorns and waiting if they ever become public companies or IPO.

Another great opportunity would be by joining Project 10K. With a mission to build, scale and sell 10,000 tech companies by 2031, Project 10K is confident that all of the companies launched would be successful and would make an impact on the world. If you think you have a big idea that has the potential to become a unicorn, send it to Project 10K. With a state-of-the-art tech team and experts on the board, there is no way you can go wrong. Project 10K is the way. Visit for more information.

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