Unicorn is a $1 billion startup, privately owned and backed by venture capital. The value of unicorns is primarily determined by their growth potential, as seen by investors and venture capitalists who have participated in previous investment rounds, rather than their current financial performance.
The term was first coined in 2013 by venture capitalist Aileen Lee, who chose mythical animals to highlight the statistical rarity of such successful ventures. When a company achieves unicorn status, it shows how attractive its value proposition and business plan is to investors. Business benefits from unicorn visibility and higher operating costs, which can provide more profitable marketing opportunities.