TYPES OF STARTUPS

TYPES OF STARTUPS

Subject : Economics

Context :Investors infused a whopping $4.4 billion into Indian start-ups in the January-March quarter, according to data sourced from market research firm Venture Intelligence. This is a decent 26% increase over the same period last year.

Concept :

• Soonicorns are startup companies that have a good possibility of becoming ‘unicorns’, with the chance of acquiring late-stage investment.
• In the world of business, the term ‘unicorn’ denotes a private company, many times a start-up with a stock valuation of over $1 billion.
• The term unicorn is of a recent origin in the business world and was coined by Aileen Lee in 2013.
• Such companies are called unicorn so as to equate them with the mythical animal thereby denoting the rarity of such successful businesses.
• Similarly, Decacorn and Hectocorn are other terms used to depict companies valued over $10 billion and $100 billion respectively.