What is the difference between unicorns and Soonicorns?

Unicorns, Soonicorns, and Hectocorns: Decoding Startup Labels

When it comes to the world of startups, flashy terms like unicorn and soonicorn aren’t just whimsical names—they’re markers of success, ambition, and market confidence.

A unicorn is a privately held startup valued at over $1 billion. These companies, like early-stage Airbnb or Uber, have proven their ability to scale rapidly, attract massive investments, and disrupt industries. The term was coined by investor Aileen Lee in 2013, highlighting how rare such startups once were. Today, while more common, they're still a symbol of elite entrepreneurial achievement.

Then comes the soonicorn—a startup not yet a unicorn, but clearly on the fast track. These are young, high-growth companies valued below $1 billion but showing strong signs they’ll cross that threshold soon. Investors see potential in their business models, user growth, or market expansion. A soonicorn isn’t just promising; it’s already turning heads in the venture capital world.

And what about the hectocorn? This one’s rarer. It refers to a startup that’s reached a $100 billion valuation—ten times that of a standard unicorn. Only a handful of companies, like SpaceX or Stripe at certain points, have reached this elite tier. Hectocorns aren’t just successful; they’re reshaping entire economies.

Together, these labels tell a story of growth and ambition. From soonicorn to unicorn to hectocorn, each step reflects a startup’s journey from bold idea to industry powerhouse. In today’s fast-moving tech landscape, the line between them is blurring—what’s a soonicorn today could very well be a hectocorn tomorrow.