What is a Unicorn?

September 13, 2022

Charmaine Teoh


What is a Unicorn?
“If you're trying to create a company, it's like baking a cake. You have to have all the ingredients in the right proportion.” 

Elon Musk

SpaceX CEO

What is a Unicorn? 

In the realm of venture capital and familiarised by many venture capitalists, a unicorn is literally as the name suggests- rare, magical and powerful, and is a honorary title that is bestowed upon startup companies that are worth more than $1 billion without having to go public on the stock exchange. As of 2022, there are more than 1,170 unicorns in the world. To name a few, we have SpaceX, ByteDance, Stripe and Ripple. Australian-based unicorn startup companies include Canva, Immutable and LinkTree. 

See a full list of Unicorn startups here

How to become a Unicorn? 

Needless to say, there are certain ingredients that are essential for the making of a  transformation potion that a startup could use to evolve into a unicorn. They are: disruptive innovation, market pioneering, tech dominant. 

Disruptive innovation - All unicorns have brought disruptive and impactful changes in people’s everyday life. For example, Airbnb changed how people planned accommodation for travels, Uber changed the way people commuted, and TikTok changed how media was consumed today. 

Market pioneering - Most unicorns are pioneers and trendsetters in their industry. Their idea is translated into a type of new necessity, creating new supplies and new demands. 

Tech dominant - It is apparent that all unicorns and their entrepreneurial ideas are intertwined with sophisticated levels of technology. The tech industry is never going to stop growing. It improves lives by providing simple solutions that are easily accessible by people and will continue to do so. 

Do you have what it takes to become a Unicorn? 

Investing in a Unicorn

Unicorn investors are mainly venture capitalists or wholesale investors because only large-scaled investments are accepted. If you are a retail investor, consider investing in a unicorn’s Exchanged Traded Fund (ETFs) or mutual fund which can be done with a smaller capital. 

Wholesale investor - An experienced investor who meets the criteria of a net asset of more than $2.5 million, or has a gross income of at least $250,000 for the two previous financial years, or is willing to invest $500,000 or more into the unicorn startup company. 

*Cosmos Capital Management sits in the Wholesale Investor category.* 

Retail investor - Non-professional investor or individual investor who invests on a smaller scale compared to wholesale investors.

What kind of investor are you? Are you ready to take your wealth to the whole new level? Contact Cosmos.