Unicorn Startup

In News 

• Recently, the Prime Minister of India highlighted that the country has reached a landmark figure of 100 unicorns with a valuation of more than $300 billion. 

What is a Unicorn startup?

• Unicorns are privately held, venture-capital backed startups that have reached a value of $1 billion. 
  • The term was first popularised by venture capitalist Aileen Lee.
• They are very rare and require innovation. Because of their sheer size, unicorn investors tend to be private investors or venture capitalists, which means they are out of the reach of retail investors. 
• The valuation of unicorns is not expressly linked to their current financial performance, but largely based on their growth potential as perceived by investors and venture capitalists who have taken part in various funding rounds.

Source:IE