We all are aware of the mystical creature “Unicorn” but here we’ll talk about what is a Unicorn in business. It is not easy to launch a startup with an innovative idea to disrupt the markets, further, it is even tougher to run a successful business out of a startup idea. When we talk about a unicorn company we mean a startup company that has raised above all mediocre startups that have a monotonous growth.
You must have heard people referring to Uber, Didi, Pinterest, Snapchat and the like as Unicorn Company, but do you know what exactly is a Unicorn company and why the name Unicorn? Who coined the name Unicorn and When? Is there anything above a Unicorn? Well, in this blog you’ll get all your answers and much more information about a startup unicorn.
What is Unicorn Company?
In this fast-growing world, there are three types of startups: those that do not turn out well, those that get successful outcomes and the very rare ones that achieve outstanding success. A unicorn company comes under the category of those very rare ones.
You must ask how rare? Well, according to a report, out of every 10,000 startups, only one becomes a unicorn. A unicorn company is a privately held startup that has a valuation of $1bn or more. Unicorn startups are not as rare now but the benchmark has been set and all the entrepreneurs starting up with their new ventures want to jump off the hurdle of $1bn before going public.
This is sometimes contrasted with “cockroach” startups (Yes, there is something like a cockroach startup too). Its characteristics are steady growth and strict cost control.
After defining a unicorn company, let’s see how this word came into existence.
