What is a 'Unicorn'
A unicorn, in the world of business, is a company, usually a start-up that does not have an established performance record, with a stock market valuation or estimated valuation of more than $1 billion.
BREAKING DOWN 'Unicorn'
The term was first popularized by the venture capitalist Aileen Lee, founder of CowboyVC, a seed stage venture capital fund based in Palo Alto, California. In her article, "Welcome To The Unicorn Club: Learning From Billion-Dollar Startups," she looked at software startups founded in the 2000s and estimated that only .07% of them ever reach $1 billion valuation. Those that do reach the $1 billion mark are so rare that finding one is as difficult as finding a unicorn.