Unicorn / Decacorn

"Unicorn" was coined by venture investor Aileen Lee in 2013 to describe private companies valued at $1 billion or more, reflecting their supposed rarity at the time. The term became ubiquitous and proliferated: "decacorn" describes companies at $10B+, and "hectocorn" at $100B+. By 2024, there were hundreds of unicorns globally, so the term signals scale but no longer implies rarity.

These designations are based solely on the latest primary round valuation — the same valuation metric with all its limitations. A company that raised at $1.1B and has since deteriorated substantially is still technically called a unicorn until it raises a down round below $1B or has a sub-$1B exit.

Illustrative example: a company raises at a $1.05B post-money valuation, becoming a unicorn. Three years later, the company's revenue has declined, it has raised a flat bridge at $1B, and secondary market trades imply an $800M valuation. It retains the unicorn label until official reclassification via a sub-$1B primary round.

The gotcha: unicorn status is a headline designation based on primary round pricing, not secondary market reality. The number of unicorns whose secondary market implied valuation has fallen below $1B but retains the label (often called "zombie unicorns") is meaningfully larger than official lists suggest. The label should be treated as a size indicator, not a quality signal.