Definition
Unicorn
A unicorn is a privately held startup valued at one billion dollars or more.
Coined to capture the rarity of such companies, the unicorn label is now common as the startup ecosystem has expanded. India has produced a large cohort of unicorns across fintech, e-commerce, SaaS and consumer sectors, with the count tracked closely by investors and the press.
Unicorn status is based on the valuation set in the latest private round, which can be paper value rather than a realised price. In downturns, several unicorns have been marked down by investors, and the term soonicorn is used for those approaching the milestone.
Related terms
- Post-Money ValuationPost-money valuation is a startup's value immediately after a funding round, equal to the pre-money valuation plus the new money raised.
- DecacornA decacorn is a privately held startup valued at ten billion dollars or more.
- SoonicornA soonicorn is a fast-growing startup widely expected to cross the $1 billion (roughly ₹8,000-plus crore) valuation mark and become a unicorn in the near future.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.