Introduction to Unicorns
Unicorns are privately held companies that have reached a valuation of over $1 billion dollars. It is a glossary term that often appears in the venture capital sector, and was accounted for by VC Aileen Lee for a company that was less than 10 years old, but had still managed to climb up to the valuation of $1 billion.
However, there are other, three particular definitions to ‘unicorn’. One of them refers to the divide and disconnect in Human Resource Management where the desired candidate for the position isn’t at par with the candidates arriving to take up the position. Another refers to the type of company ready for buyout, the one that matches many necessary requirements and more.
Understanding Unicorns
In essence, Unicorns are simply those privately held start-ups that have reached or crossed the valuation mark of $1 billion dollars. The name comes after Aileen Lee brainstormed about a tag for companies that have managed to attain such valuation and are yet less than a decade old. The report in which the tag ‘Unicorn’ was first mentioned by the VC, founder of Cowboy Ventures in 2012, detailed the observations of a successful company and its habits to reaching $1 billion valuation in such a short amount of time.
Unicorns are an advantageous investment in a portfolio for investors through private investing, which has led research analysts to discuss the difference between these ventures and traditional IPO. Concerns about the dwindled dotcom bubble of the 1990s is often brought up during the discussion, since unicorns are less a rarity now than before.
Highlights of Unicorns
Unicorn valuation is not based on mere benefit seeking, but heavily reliant on long term forecasting of the advantage and products of welfare and accordingly sufficient business models the management and the founders of the startup produce.
It is one reason why the most common unicorns in the secrets arise in technology, mobile technology and information technology, and often at the intersection of them.
