Unicorn

A Unicorn refers to a Private Company going Public with an Initial Public Offering in excess of $1 billion. An IPO of this size is seen as a rare event, hence the name Unicorn.

The term Unicorn has recently come into the Investment Jargon from Venture Capitalists and refers to a rarely seen event, the mystical animal the “Unicorn”. This describes a privately held Company rising from a Start-Up to a Company which, if listed could command a Market Cap in excess of $1 Billion. Venture Capital assists Start-Up Companies in their initial growth phase. In fact, Private Companies are delaying the move to listing on the Stock Exchange. There could be several reasons. One of the most likely given is due to the abundant pools of private capital from Venture Capitalists, Private Equity, Foundations, Endowments and Sovereign Wealth Funds. These capital sources are possibly meeting the funding requirements for high growth Start-Ups. This could be creating a delay in listing on a Stock Market, thus forming Unicorns.