The authors examine whether the term “unicorn” still has investment value as private markets evolve and AI reshapes venture capital. They argue the label now encompasses roughly 1,700 companies worth an estimated $8.6 trillion, making it less useful on its own and requiring investors to focus on valuation quality, liquidity, and company fundamentals instead.
Unicorns Reconsidered: Four Open Questions for Institutional Allocators
Meketa
Luke Riela
Research
11 Pages
Key Takeaways
Unicorns lost rarity: Roughly 1,700 private unicorns now represent an estimated $8.6 trillion in value, versus just 0.07% of startups meeting the definition in 2013.
Valuations need scrutiny: About 60% of US unicorns were last valued during the zero-rate era, while 93% lack a liquid secondary trade supporting their billion-dollar valuations.
IPO quality matters: Although US IPOs have historically lagged the market by roughly 20 percentage points over three years, tech firms with $100M+ in sales have outperformed after listing.
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