In entrepreneurship, a unicorn is a privately held company valued at at least $1 billion.
The term was coined by venture capitalist Aileen Lee in a 2013 essay about the rarity of billion-dollar technology startups. It refers to a valuation assigned during private fundraising or another private-market transaction, not necessarily to cash that the company has earned or holds.
A company can cease to be a unicorn if it goes public, is acquired, or its valuation falls below the threshold, depending on how the label is being used. A decacorn is commonly defined as a private company valued at $10 billion or more, while a hectocorn reaches $100 billion.
Valuations can change between funding rounds and may be influenced by preferred-share rights and other deal terms. Therefore, a unicorn valuation is an investor estimate of company value, not a guarantee of profitability or future success.