A unicorn is a beautiful, mythical creature rumored to have magical powers. Perhaps no less magical, is a unicorn in the business world.

Unicorn is a term coined in 2013 by Aileen Lee, founder of Cowboy Ventures, a venture capital firm. A unicorn is a business worth over a billion dollars at start-up. So how does a business accrue that much worth at the beginning stages of launch?

These business’s values are typically based upon how much it would cost to replace their business model. The evaluation is also dependent upon the company’s potential for future growth and development rather than its current financial performance; basically, what investors think the business is worth. Unicorn businesses are privately funded by investors and aren’t listed on a share market. These businesses are a statistical rarity, hence the name “unicorn”.

You are probably familiar with several of these unicorns; Airbnb, Uber, Instacart, and our favorite, Odoo ERP with whom we work. Facebook is another familiar unicorn and achieved the name of super unicorn. Mark Zuckerberg was only 20 when he co-founded Facebook. (Youth and a shared past between founders are common factors in unicorn businesses).

Looking for an ERP solution that can help your business scale? Certum Solutions partners with Odoo ERP to provide businesses with seamless implementation, expert guidance, and ongoing support. Learn more about how we help businesses implement Odoo.

Unicorn companies plan, plan and plan some more. They have a road map in place. They take advantage of social media to amplify their message and impact their target audience at a much lower cost than more conventional media. Usually, a consumer centric business strategy is employed; the customer is always first during creation, implementation, and after sales. They realize that the buying experience is equally important to the product. Good start ups usually have a “get big fast” mentality with globalism in mind.

Unicorns often employ a multi-disciplined, multi-cultural team. These mixed professional profiles are a plus when it comes to creating unique ideas. Talent and creativity are valued.

A unicorn company needs a unique idea, a clear plan for growth, a good business plan and the ability to talk to venture capitalists and private investors. Not unexpectedly, unicorns are considered high risk business venture exposed to higher uncertainties.

Today, unicorn companies are worth about 2.5 trillion dollars and account for about two-thirds of the U.S. market value in venture capital backed companies. This is despite the decline since 2021. In 2024, there were 56 U.S. startups with AI, cybersecurity, health tech, and fintech fields leading the race.

Do you have a unique idea and a driven, entrepreneurial spirit? While statistically rare, the unicorn is real and attainable.

Please tune into Certum Solutions YouTube channel for the video, “What is a Unicorn in Business?”; an explanation of a unicorn business presented by our own unicorn in costume, Katie Bunschoten. Contact Certum Solutions for any of your business or bookkeeping needs

If you're ready to take your business to the next level with the right tools and strategies, Certum Solutions is here to help. From ERP implementation to bookkeeping solutions, we provide the support you need to grow. Contact us today to get started.

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