Unicorn Company:
Startups are emerging as the new driving force of India’s defence innovation ecosystem, said Defence Minister recently, while calling upon young entrepreneurs to set new benchmarks and create India’s first defence unicorn.
- A unicorn company is a privately owned start-up that has been valued at over $1 billion.
- It is commonly used in the venture capital industry. The term was first popularized by venture capitalist Aileen Lee in 2013, when she referred to the 39 startups that had a valuation of over $1 billion as unicorns.
Key Characteristics of a Unicorn Startup:
- A billion-dollar valuation or more.
- Not publicly traded on a stock market.
- Demonstrates rapid growth and innovation.
- Often introduces innovative products or services that disrupt existing industries.
- Secures substantial funding from venture capitalists and other 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.
- Some unicorns choose to go public by launching an initial public offering (IPO); some opt to remain private using their funding rounds to avoid going public; and still others end up getting acquired by bigger companies.
- As of July 2025, there are over 1,200 unicorns around the world.
