In startup investing, what is a unicorn company valued at before an initial public offering or sale?

In startup investing, a unicorn is a privately held company valued 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. The mythical unicorn emphasized how unusual such companies were at the time. The label normally applies before an initial public offering or acquisition, when a private company’s valuation is estimated from investment rounds or other transactions.

A company can reach unicorn status without having $1 billion in cash or revenue. The valuation commonly reflects the price investors pay for a minority stake, adjusted for the company’s overall capitalization and the rights attached to different shares. That estimate can change sharply in later funding rounds or market downturns.

Related labels include decacorn for a private company valued at $10 billion or more and hectocorn for one valued at $100 billion or more. These labels describe valuation milestones, not profitability, age, or business quality.