“Unicorn”

Characteristics of a Unicorn?

A Unicorn is a term that is used to refer to a privately-held startup company valued at over $1 billion. The name comes from the rarity of legitimate startups that reach this level of success. Unicorn companies typically have a market capitalization of more than $1 billion and have yet to go public or be acquired. By definition, they are privately owned and typically involve HR Technology focused business models.

Examples of Unicorns

In addition to Uber, Airbnb, and Palantir, some other well-known Unicorn companies include:

• SpaceX: The aerospace company was valued at around $36 billion in 2020.
• WeWork: The office-space rental company was valued at around $47 billion in 2019.
• ByteDance: The parent company of video sharing website TikTok was valued at around $78 billion in 2019.
• Stripe: The payment processing company was valued at around $36 billion in 2019.
• DoorDash: The online food delivery service was valued at around $13 billion in 2020.

How Unicorn Impact on the Economy?

Unicorns are hugely influential within the tech economy, enabling incredible wealth creation and driving innovation. They’ve shaped the way we use mobile applications, retail, finance, travel, and more. Their investments fund further startup development and help propel nascent technology forward.

The significant investment rounds and high valuations also indicate the market’s trust and faith in the development of products of these companies. Not only does this have a tremendous economic impact, but it also encourages and motivates future entrepreneurs and encourages technological progress.

FAQs

What is a unicorn company in business?

A unicorn company is an up-and-coming startup company valued at more than $1 billion, typically involving technology-focused business models and rapid growth.

How does a company become a unicorn?

There is no single formula to becoming a Unicorn, but typically such companies show: rapid growth, large and consistent investment rounds, substantial venture capital investment, and community engagement via social media.

Are all unicorns technology-based startups?

No. While many Unicorns are technology-based startups, there are non-tech companies that have achieved a market capitalization of more than $1 billion and the title of Unicorn. Examples include Casper, a bed-in-a-box retail company, and Impossible Foods, a plant-based food company.