In startup terminology, a privately held company valued at least $1 billion is called a unicorn.
The term was coined by venture capitalist Aileen Lee in a 2013 article about the rarity of billion-dollar technology startups. Lee used the mythical unicorn to emphasize how unusual these companies were at the time. The word has since become standard language in venture capital and entrepreneurship.
A unicorn valuation generally comes from a private financing round or another transaction involving investors. It does not necessarily mean the company has earned $1 billion in revenue or profit. Valuations can also change as market conditions and investor expectations change.
A decacorn is a private company valued at $10 billion or more, while a hectocorn is valued at $100 billion or more. Public companies are not normally described as unicorns simply because their market capitalization exceeds $1 billion; the term specifically emphasizes private-company status.