Definition
A startup valued at over $1 billion that has never undergone the reality check of going public or getting acquired. Their unicorn status exists purely in the fantasy land of private market valuations.
Example Usage
That paper unicorn raised at a $2B valuation in 2021, but their IPO attempt revealed they were worth maybe $400M in the public markets.
Origin
Silicon Valley slang from the late 2010s distinguishing private valuations from real market tests
Fun Fact
The 2022 market correction revealed hundreds of paper unicorns were actually donkeys with expensive marketing, leading to massive down rounds and writedowns.
Source: Startup valuation terminology
Related Terms
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See “paper unicorn” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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