What Is a Unicorn Company? The Living Legends of the Startup World

🦄 What Is a Unicorn Company?

• A unicorn company is a private (unlisted) company that receives a valuation of KRW 1 trillion or more within 10 years.
• The name "unicorn company" comes from the imaginary creature, the "unicorn."
• The criteria for a unicorn company are: within 10 years, a valuation of KRW 1 trillion or more, and not publicly listed.

🌟 Characteristics of Unicorn Companies

Unicorn companies have the following 3 characteristics.

• High growth potential: By earning a high valuation of KRW 1 trillion in a short period, they show a company's growth potential within the startup world.
• Time limit: This high valuation must be achieved within 10 years.
• Unlisted: Unicorn companies are not publicly listed, so their company value is estimated through market valuation.

💼 Things to Consider When Investing in Unicorn Companies

Investing in unicorn companies is something that calls for caution. In particular, you should look closely at the valuation results. Market valuations can be influenced by many different factors, and with unlisted companies, making an objective judgment is harder than you might think.

Unlike listed companies, changes in the value of unlisted companies aren't quantified in clear numbers, so it can be difficult for individual investors to judge them. Unicorn companies are certainly promising rising stars that draw attention even before they go public, but they may also be more overvalued than you'd expect. So when investing in a unicorn company, you should make a careful decision that takes into account both the valuation and the characteristics of unlisted companies.

That wraps up our look at what unicorn companies are, their criteria and characteristics, and what to consider when investing in them.