From unicorns to thoroughbreds: Rethinking startup success – Parmy Olson

It's been a decade since the term "unicorn" was coined for startups valued at $1 billion. Today, unicorns are less rare, declining to 95 last year from 621 in 2021. Higher interest rates and investor scrutiny have led to a healthy correction. As generative AI stirs market excitement, investors should focus on startups with strong fundamentals. Saul Klein suggests calling companies with $100 million revenue "thoroughbreds" to emphasize sustainable growth.

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By Parmy Olson

It's been a decade since the term "unicorn" was coined by Silicon Valley venture capitalist Aileen Lee to describe startups that reached a $1 billion valuation. The name quickly became coveted. Yet today, unicorns aren't so rare. Having reached a peak in the heady, liquid days of 2021, the number of startup unicorns being created globally is now in decline, to 95 last year from 621 in 2021, according to market intelligence firm CB Insights, thanks in part to higher interest rates and greater scrutiny from investors.

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