Unicorn
Achieving unicorn status is a coveted goal for venture capital funds, start-ups and their investors. It signifies exceptional performance, innovation, and the potential for substantial returns. For venture capital funds, specifically, creating a unicorn signals that their investment strategies are effective, leading to significant returns on capital and enhancing their reputation in the market and in the ecosystem.
Companies with valuations exceeding $10 billion are referred to as “decacorns,” while those valued over $100 billion are sometimes called “centicorns” or “hectocorns.”
In Canada, 41 VC-backed unicorns were created nationwide in the five years from 2019 to 2023.
Some notable Canadian unicorns include Shopify, which hit the $1-billion milestone in 2013 and Wealthsimple, which achieved its unicorn status in 2020.
Here are a few more notable Canadian Unicorns:
- Coveo
- Benevity
- Hopper
- Tenstorrent
Unicorns are sometimes known for their disruptive and paradigm-shifting innovations. They often introduce groundbreaking technologies, business models, or products that challenge existing industries and create new market opportunities. For this reason, unicorns often operate in emerging or disruptive sectors such as technology, biotechnology or fintech.
Another key characteristic of unicorns is that they usually have scalable business models that enable rapid growth without a proportional cost increase. Technology, network effects, or unique value propositions often drive this scalability.