What are Unicorns?

Privately held companies valued at over $100 Crores or $1 billion are known as unicorns. Considering this valuation, a level of achievement that only a few startups can reach, it was named after a mythical creature by Aileen Lee (a venture capital investor and founder of Cowboy Ventures) in 2013. Swiggy, Zomato, Oyo, PhonePe are some of the popular unicorns in India since 2018. Most of the startups get such valuation when a prominent investor acquires or invests in it.

Who evaluates the Unicorns?

The venture capitalists and investors that participate in funding rounds do these valuations. The worth of a unicorn startup is determined primarily based on its expected growth potential, first mover’s advantage, and other aspects. It may not be related to its financial performance.

In a Nutshell – How to Become a Unicorn

There are two points that you need to focus on to become a unicorn:

• Your product or service must add value to a customer, such as reduce travel time, reduce cost, etc. Example, Uber and Swiggy.
• It should have an impact on a customer’s life, such as by improving lifestyle. For example, Zomato delivers food at home and provides discounts at restaurants through Zomato Gold.