“Unicorn” is a term used in the venture capital industry to describe a privately held startup company. With a value of over $1 billion. The term was first popularized by venture capitalist Aileen Lee. A founder of Cowboy Ventures, a seed-stage venture capital fund based in Palo Alto, California. Some popular unicorns include SpaceX, Robinhood, and Instacart.
The value of unicorns is generally based on how investors and venture capitalists feel they will grow and develop. So it all comes down to longer-term forecasting. This means their valuations have nothing to do with the way they perform financially. In fact, many of these companies rarely generate any profits when they first get running. Lastly, to know more about unicorn start-ups and how to become one. Contact Entrepreneurs Collective and become a free member today.
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