Unicorn
Candlefocus EditorThe value of these companies comes from many sources. The primary source of valuation for a unicorn is typically venture capital investments. When venture capitalists invest in a company, it is generally done in exchange for an ownership stake in the company or a stake in a future initial public offering of the company. These companies tend to have high risk, high reward potential and have been enabled by the accessibility of venture capital funding due to the Silicon Valley boom in recent years.
The number of companies worth over a billion dollars has been increasing substantially over the last few years, especially since the advent of technology start-ups. As of March 2022, more than 1000 such companies in the world can be referred to as unicorns. Popular unicorns include some of the tech giants such as SpaceX, Robinhood and Instacart.
Unicorns are also increasingly becoming the ideal employees for human resources and hiring managers. A 'unicorn employee' is one who is overqualified for a particular position and may bring with them a skill-set that vastly exceeds the job requirements. These employees are highly sought after, and are often rewarded with increased salaries or much more generous benefits than the traditional employee.
The term unicorn may have been first used in the venture capital industry, but is now being adopted by many different industry and business stakeholders. The value placed upon companies worth more than a billion dollars, as well as the ideal employees they seek, is the result of a rapidly evolving landscape of technological advancements, capital investments and hiring objectives.
As businesses continue to find innovate ways to utilize technology and capitalize on the value that these billion-dollar companies offer, we can expect to see the unicorn phenomenon deepen its roots in the tech and business world.