A “unicorn” is a privately held startup valued at $1 billion or more, a term popularized by Aileen Lee in 2013.
Lee, a venture capitalist and founder of Cowboy Ventures, used the term in a widely discussed analysis of billion-dollar software startups. She chose “unicorn” because companies reaching that valuation were exceptionally rare at the time. The label quickly spread through venture capital, business journalism, and startup communities.
The valuation usually refers to a private financing event or an investor’s agreed valuation, not necessarily cash held by the company or a public-market price. A startup can become a unicorn before an initial public offering or acquisition.
Related terms can cause confusion. A decacorn is generally a private company valued at $10 billion or more, while a hectocorn is commonly used for a $100 billion private company. Those labels describe larger valuation thresholds, not different business models.