UNICORN STARTUP (Syllabus: GS Paper 3 - Economy)

News-CRUX-10     3rd August 2023        

Context: Emphasising that economic empowerment of women fuels growth, PM highlighted that at 1.4 million, 46% of elected representatives in India’s rural local bodies are women, and an increasing number of women joining self help groups has also been a powerful force for change.

  • The PM highlighted that 15% of India’s unicorn startups have at least one woman founder, with a total wealth of $40 billion.
  • Nearly, 80% of 'Stand-Up India' beneficiaries are women who secured bank loans for greenfield projects.

Unicorn startup

  • About: Unicorns are privately held, venture-capital backed startups that have reached a value of $1 billion
    • The term was first popularised by venture capitalist Aileen Lee.
  • Very rare and require innovation: Because of their sheer size, unicorn investors tend to be private investors or venture capitalists, which means they are out of the reach of retail investors. 
  • Based on growth potential: The valuation of unicorns is not expressly linked to their current financial performance, but largely based on their growth potential as perceived by investors and venture capitalists who have taken part in various funding rounds.