A Beginner’s Guide To Unicorn Private Equity

Investing in unicorn private equity is one of the most popular ways present in the market today to diversify one’s investment portfolio. The ability of unicorn private equity to generate amazing returns for its investors is the major reason why it is currently one of the most sought-after investment assets.

To know more about these amazing return generating assets, read on –

What is unicorn private equity?

Unicorn private equity is essentially the equity/stock/share of a newly established company/start-up that has achieved and crossed the valuation of $1 billion. The valuation of a company is essentially the worth of its business. You can easily get this information for a startup by researching the total funding they received in the latest financing round. A startup is evaluated on the basis of its size of market capitalization, the uniqueness of its business model, product/service, marketing strategy, the skills and qualifications of the company’s leadership, etc.

What are the benefits of investing in unicorn companies?

Apart from being able to generate mind blowing returns for its investors, there are plenty of benefits of investing in unicorn private equity, namely -

1) Startup-friendly government policies

Governments around the world want to increase the number of entrepreneurs present in their country. They come up with startup-friendly policies at regular intervals that helps the new companies to access the different resources required for it to grow. Many governments even organize various talk shows and exhibitions to help the entrepreneurs network and build connections.

2) Startups typically have revolutionary ideas

Every established company that has successfully changed consumer behavior was a startup once. Entrepreneurs usually have a new service/product idea that they think will have a significant positive impact on the consumer’s lifestyle and make it more convenient. If you have chosen wisely, investing in unicorn startups helps you become a part of an extraordinary journey that permanently changes the way how a few things are done. To give you more clarity, giant companies like Facebook and Google were once startups and have permanently changed the way we connect with others and gather information.

3) They provide massive returns

Startups can generate massive returns for their investors either by adopting the Get Big Quick (GBQ) strategy or through company buy-outs. The GBQ strategy helps startups to capture a significant size of the market in a very short period of time. Company buy-outs, on the other hand, are essentially the acquisition of the startup by a bigger company. This is good news for a unicorn investor as company buy-outs are usually of great value and provide massive returns to all the parties involved.

4) Investing in unicorn private equity is highly engaging

Many entrepreneurs today not only want your money as an investor but also your expertise in a particular domain or the influence you have in the market. Thus, investing in startups is much more than just parking your money and waiting for it to grow; it is a very engaging and involving experience, even for an investor.

We hope this article enlightens you about unicorn private equity.

Read More : 5 Things To Keep In Mind When Making A Private Markets Investment