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Unicorns And Venture Capital: Captivating Mirages Or Essential Investments?

Inc42Inc42 · 7m
Unicorns And Venture Capital: Captivating Mirages Or Essential Investments?

Venture capital and private equity investors have been fascinated with unicorns - startups valued at $1 billion or more. While these unicorn success stories seem enticing, they may not be necessary for achieving stellar returns. Unicorns are rare, making it difficult to build a consistent investment strategy around them. Additionally, predicting which companies will reach unicorn status is challenging. Investors can still reap significant returns by cashing out at opportune moments along the investment journey. The number of rounds an investor can stay in the game is limited by fund restrictions, and riding a future unicorn from inception to unicorn status is rare. Therefore, achieving exceptional returns in the venture capital landscape requires more than just capturing unicorns.

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