Definition and Examples of Unicorns
A unicorn is a term used in the business and investment world to describe private startup companies that have a valuation of one billion dollars or more.
How does a Unicorn work?
Most unicorns start as small startups, and every startup needs to raise capital to succeed and subsequently increase its capital.
Types of Unicorns
Unicorns come in various forms and often emerge from the rapidly growing technology sector, but there is no rule about what these companies can do.
Advantages and Disadvantages of Unicorns
There are advantages and disadvantages to investing in unicorns; while unicorns represent startups that achieve sustainable growth, they are also considered high-risk investments.
What does this mean for individual investors?
For public companies, individual investors can easily open an account in the stock market to buy and sell shares. However, investments in private companies are usually limited to wealthy accredited investors, as the risk is considered high.
If you are interested in investing in unicorn companies, you might consider investing in a mutual fund or an exchange-traded fund that focuses capital on private companies. This could give you an opportunity to benefit from the unicorn market without needing significant wealth.
Source: https://www.thebalancemoney.com/what-is-a-unicorn-5192454
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