What Exactly Is Unicorn Private Equity?

Rajeshdesa07 Dec, 2021Business

It is a common notion that making unicorn private equity a part of your investment portfolio means a higher return. However, that is only half of the truth. Investing in a unicorn startup is surely very profitable but it also comes with an equally high risk. To get more clarity on this topic, read on - What exactly is unicorn private equity? Unicorn startups are essentially new private companies that have reached a market valuation of a billion dollars or more. This valuation is basically the amount an investor is willing to pay to be a part of the startup?s journey. To accept an investment, a company has to offer something of value in return. This is usually achieved by offering stakes in the organization to the investors in exchange for their money. As and when the company grows, the stakes offered to investors increase in value proportionally and become extremely valuable with the passage of time.