As currently we are in an era wherein startups and companies are rising very swiftly so we should keep ourselves updated with the jargons and new terminologies that are probably of our use in the future of startup ecosystem. In this blog, we’re going to explore various steps that a startup crosses and gets badges of honors named like minicorn, soonicorn, unicorn, decacorn and hectocorn which are all originally derived from the term Unicorn. This jargon Unicorn is invented by Aileen Lee-the founder of Cowboy Ventures in 2013 as he discovered that out of 60,000 software and internet companies that got funding during 2003-2013, only 39 companies were worth more than $1 billion. Thus, the name unicorn was honored to such companies which were of rarity then. But now, the startup universe is crowded with such unicorns and this growth seems immense and unstoppable.
Minicorn startups are startups with a valuation of $1 million and over. These startups have a strong vision and they strive to become a unicorn in upcoming future.
Soonicorn i.e. “Soon to be Unicorn” startups have very strong growth potential and have high possibility of joining a unicorn club very soon. Based on the future market forecasts and company valuation, Angel investors and venture capitalists invest in such startups primarily.
How the term Unicorn came into existence and what it means has already been discussed above. As of 8th December, 2021, India is home to 79 unicorns with a total valuation of $260.5 billion. Out of total unicorns, 42 unicorns with a valuation of $82.1 billion are born in FY21. Till FY17, approximately one unicorn was being added every year but over the past years, this number has increased exponentially with a Y-o-Y growth of 66%. Key drivers behind this growth are considered to be thriving digital payments ecosystem, large smart-phone user base and growth of digital business models during pandemic in India. Fintech, SaaS, ecommerce, grocery and online marketplace are the players majorly contributing to the list of Unicorns.
A Decacorn is an evolved version of unicorn. A decacorn is a company that has attained a valuation of more than $10 billion. The ‘Deca’ in the jargon Decacorn now makes a sense. Being a decacorn is a result of what the company has shown to the globe by achieving its fantastic growth rate which others couldn’t achieve.
Synonym for Hectocorn is Super Unicorn which means a company whose valuation is more than $100 billion. Being a hectocorn is not a simple ambition that one can build overnight and therefore, it is the highest step of the badge of honor given to the startups.
This new era of startup ecosystem do not rely on inherited wealth or business loans or extra-business connections but grows on the basis of innovative ideas and talent to implement it. This ecosystem is drastically changing our living style and making things possible in easier ways.