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The term Unicorn hit the business world by storm in 2013 by Aileen Lee, a venture capitalist. This term is used to describe privately held startups valued at $1 billion dollars and more and it quickly gained traction. As time has progressed, the term has evolved to accommodate the increasing number of companies fitting this new category. Consequently, new labels such as "decacorn" (for companies valued at $10 billion or more) and "hectocorn" (for companies valued at $100 billion or more) have emerged.

Language is at its’ core, the building blocks of a society thus without the successful use of it, nothing can successfully bloom into existence. The widespread hype and overuse of the term unicorn in the business world have significantly influenced the success of startups over the past decade.
 

The Influence of Market Buzz 

Startups around the world are striving to gain visibility by leveraging the internet. Media buzz is essential for a startup to reach this type of ‘out of this world’ success that qualifies them as a unicorn. The buzz behind the term unicorn has not only contributed to the success of startups but may also play a role in their swift failures.

The influence of the buzzword unicorn is evident across the internet, particularly in blogs and YouTube videos that discuss a company's potential to achieve unicorn status before it has been officially classified or valued as such.

We all recognize the influence of media coverage, which has shaped decision-making and public opinion since the arrival of radio or television. 

The power of language on the other hand, is still something that gets underrated, a single term such as ‘unicorn’, is not only a relevant description but easily understood by most cultures. For a startup to be connected to this term and then getting lot’s of media coverage across the internet as such, gives them an instant recognition and potential to receive a key to the mythical palace called Silicon Valley. 

People tend to trust and invest in what is already seen as reliable, especially if it’s as magical as a unicorn. They might not be loyal to it yet, but they will for sure want to try it out to evaluate whether it’s worth the hype or not.  

Can Unicorn Success Be Sustained in the Long Term?

Unicorn startups often follow a formula that involves tapping into a small or niche market with innovative and scalable solutions. They typically feature strong business models and quickly attract financing and investors. Extensive media coverage along with the power in the perception of being a unicorn startup or a potential one play a crucial role in enhancing the chances for success and sustainability.

On the other side of the coin, this market buzz could also be a part of the reason for the rapid failure rate in startups, even those seen as unicorns. Not only does the startup have a pressure to perform with the spotlight on it, when it is still fighting to get off its feet, its impact is already profound; affecting the economy, driving technological innovation, and significantly shaping our social and cultural landscape in the process of trying to survive. 

Before even having the opportunity to enter the doors of Silicon Valley, the unicorn has already been seen and judged by the mega corporations ruling the tech world. These tech giants have the power to easily manipulate the startup’s path towards success or even put a halt to it. Airbnb and its struggles towards success, is a perfect example of the impact that tech giants in Silicon Valley have on the future success of startups. Especially those seen as unique unicorns due to their innovative freshness can quickly become either a threat or an opportunity for exploitation.

A unicorn startup can be compared to stars in the night sky, in our eyes​​ it is beautiful and bright, lighting up through the unknown darkness. By the time the star becomes visible to our human eyes, it has already died and we are simply experiencing its descent towards burning out.

 

Could it be the same with the rapid success of Unicorn Startups?

 

By the time they reach this hyped status, they are already approaching their flaming ends. Some may last years, others even decades, but their descent is inevitably near due to various factors such as technological advancements, social changes, and shifts in investor interests.

A quote from Erin Griffith’s article in the New York Times: “Ms. Peyton said she had once felt that the opportunity and potential for growth in software was infinite. “It’s become clear that that’s not true,” she said. “The market has a ceiling.” 

Unicorn success is possible if they adapt and change as rapidly as they rose, like Canva for example, consistently innovating to stay relevant. Growing with the changes in the technology sector by incorporating AI etc. 

Unicorn startups have a dramatic effect, increasing the speed of our already rapidly changing job market. Its impact is enormous on the economy, technology innovation and more profoundly on our social and culture. 

The legend of the Unicorn 

A myth is defined as a story often rooted in cultural beliefs with symbolic narratives. Thus, the term ‘unicorn’ might be perfect for these types of startups whose success heavily relies on the current trends of our economy and society. In our rapidly evolving era, technology is advancing so quickly that what we consider normal today could be entirely different in 10 to 20 years. The emergence of new technology models could indeed lead to these startups becoming a myth, similar to the unicorn. As the technology that these structures are built upon evolves, it may become obsolete in the future, turning their success into a myth of legends. 

What is the relevance of using a mobile app if you no longer use mobile devices? Consider looking back to the early days of cellphones: if that same app had been introduced then, would it have been relevant even if the software and hardware could support it?

Startups reaching unicorn status and success is just as much about timing, opportunity and relevance as it is because of the $1 billion dollars behind them.