What is a unicorn company?

A unicorn company in finance is a term used to describe a privately held startup company with a valuation of over $1 billion. The term was first coined by venture capitalist Aileen Lee in 2013, and it refers to the rarity and mythical nature of such high-valued startups. Unicorn companies are typically high-growth tech companies that have disrupted traditional industries and gained significant market share in a relatively short period of time. These companies often attract a lot of attention from investors and the media, and their valuations can soar even higher as they approach an initial public offering (IPO) or acquisition. Examples of well-known unicorn companies in finance include Uber, Airbnb, and SpaceX. The term unicorn has also given rise to other similar terms such as "decacorn" for companies with a valuation of over $10 billion, and "centicorn" for those with a valuation of over $100 billion.