Return to Uzone News Portal
Uzone.id — In startup culture, certain terms classify startups based on their valuations, becoming a way that could define a startup’s success.
Some important and familiar terms are “unicorn”, “decacorn” and “hectocorn”. These terms have been universally used for quite some time to show off the extraordinary growth potential of certain startups.
But, do people–and you know what’s the difference between a decacorn, unicorn, and hectocorn? Here’s the explanation!
Unicorn
The term “unicorn” was ‘debuted’ in 2013 by Aileen Lee, the founder of Cowboy Ventures, a US-based seed-stage venture capital firm. A unicorn, in the world of startups, is a privately held company that reaches a valuation of US 1 billion or more.
At the time, only a handful of companies reached that milestone. Today, though the number of unicorns has grown, it’s still a badge of honor and a sign that a startup has done something remarkable.
According to CB Insights, as of 2023, there are over 1,200 unicorns among 150 million startup companies in the world,
In 2023, United States reached 72.150 startups, making it the most dominant country for startups. Indonesia with 2,188 startup companies is ranked 5th as the country with the highest number of startups.
Unicorn startups usually come from industries like tech, fintech, and e-commerce. Companies like Airbnb, Stripe, and SpaceX are all once a unicorn—they all started small but quickly scaled to become industry giants.
Decacorn: leveling up
Unicorn is just a start for startups. Once a unicorn reaches a valuation of USD 10 billion, they’re going to level up and earn a new title: decacorn.
Unicorns are still rare out there and decacorns are even harder to find. Decacorns are the superstars of startups, not just growing quickly but also dominating markets around the world. These are the companies like Uber, ByteDance (the company behind TikTok), and Canva that’s already reach this milestone.
What makes decacorns special is their ability to grow fast, thanks to innovative products or services. They also benefit from something called “network effects.” This means the more people use their product, the more valuable it becomes. For example, Uber gets more valuable as more drivers and riders join, making it harder for competitors to catch up.
A great example is ByteDance, which was valued at $300 billion in 2022. It’s one of the most valuable startups globally, showing how quickly decacorns can grow and shake up entire industries.
Hectocorn: the highest level and the rarest one
Finally, there’s the hectocorn. The highest level–also the rarest one. Startups that are valued at USD 100 billion or more are called hectocorn. To become a hectocorn, a company needs to have a huge potential market, a product that people around the world love, and constant innovation to stay ahead of competitors. These companies also face more government regulation because of their big impact on the global economy.
These companies are incredibly rare—even in the USA, which claims to be the country with the most startups. Only a few startups have reached this level of success. Hectocorn is usually titled to a popular company that most people know, like Apple, Google, SpaceX and Cisco. OpenAI with its innovative products like ChatGPT and Sore is predicted to be the next hectocorn after getting new funding that boosts its valuation to more than US 100 billion.
Terms like unicorn, decacorn, and hectocorn sound fun, but behind that, they’re based on serious business fundamentals. The faster a company grows, the higher its value. Startups that can grow fast, scale their business quickly, attract tons of users, are the golden child for investors.
Companies that’s already in decacorn and hectocorn level don’t just focus on a tiny niche—they aim for the biggest goal–global markets. They aim the space to grow from unicorns into decacorns and last, into hectocorn.
Innovation is another key. Startups that bring something truly new, whether it’s breakthrough tech or a game-changing business model, like OpenAI. This startup becomes a trendsetter and they attract massive valuations.
