Start-up companies are up against the odds when they set out to produce a new product or service. Despite these odds, there are still some that become highly profitable. Those select few private companies that reach a valuation of more than $1 billion are known in the industry as “unicorns”.
Venture capitalists play a tricky game when agreeing to fund a startup. There’s no guarantee that their investment will grow into the much larger companies that they can eventually profit from.