How To Guide For: Understanding What A Unicorn Company Is
Unicorn in the venture capital industry is any tech startup company that reaches a $1 billion dollar market value as determined by private or public investment. The term was originally coined by Aileen Lee, founder of Cowboy Ventures in 2013. According to CB Insights there are 178 unicorn companies with a total cumulative valuation of $644B. In the tech sector there are now estimated to be more than 200 private companies with $1 billion valuations according to a report by Spoke Intelligence and VB Partners. The reason why there are more unicorn companies today is due to the fact that more companies are staying private longer. There are many reasons why companies are waiting before going public. One reason is that the longer a company waits before launching an Initial Public Offering (IPO), the more time it has to garner value. The reason I wanted to discuss unicorn companies is because I was reading about the unicorn ride hailing app Careem which does the same thing as Uber but it is based in Middle East. The ride hailing app Careem just closed its first part of a $500 million funding round according to Reuters. Also there is the unicorn company Mercari which was founded in Japan and is like Amazon. Then there is Souq.com which is also like Amazon but based in the Middle East. The unicorn list is growing. To learn more about unicorn companies click on the pictures below.