Below are some reasons why Golang can be more rewarding than Python, C or other languages: However, this is not Go’s only benefit, the language offers numerous advantages. Frameworks used in monolith architecture simply don't make sense in this case. This is a major advantage for companies developing niche products with a narrow range of functions. Thank you for reading CFI’s explanation of a Unicorn.The main reason startups are using Golang is that it offers quick implementations and is suitable for microservice development (an architectural style that develops an app as a set of small services). By leveraging the new technologies, unicorn startups manage to reach their customers faster and shorten the time required to achieve mass production. Innovations in technologies allow the faster growth of startups. The intense competition among the tech giants causes them to offer a significant premium that boosts the valuation of target companies, creating unicorns. Large companies benefit from the deals because they are able to acquire developed technologies instead of building something similar from scratch. Instead, tech giants such as Facebook or Google acquire many startups to diversify their business and to prevent potential major competitors from arising in the marketplace. BuyoutsĬurrently, many promising startups do not meet the requirements for an IPO. Therefore, a unicorn company’s valuation skyrockets every round of financing. Such strategies encourage investing large amounts of money in every round of financing, in order to capture the biggest possible market share as soon as possible, as well as to prevent the emergence of major rivals in the marketplace. Nowadays, venture capitalists primarily rely on fast-growth strategies for a startup’s development. The abnormal valuations are typically justified by the following reasons: 1. Listed below are the top ten unicorns in the world, according to total valuation, as of November 2018 ( source):įigures in US$ billion Reasons for the Abnormally High Valuation of Unicorns Some companies become the first business of their kind in an industry, which makes the valuation process even more complicated. Additional complications often arise due to the business models of such companies. Valuing unicorns is a sophisticated process that involves the consideration of various factors and the development of long-term forecasts. Note that despite their abnormally high valuations, many of the companies have yet to generate any profits. The unicorns’ valuation is not strongly related to their actual financial performance or other fundamental data. Since all unicorns are startups, their value is primarily based on their growth potential and expected development. The valuation of unicorns is derived from valuations developed by venture capitalists and investors who participated in the financing rounds of the companies. Although some professionals believe that such companies are just a result of technological progress and innovation, others believe that the increasing number of unicorns is a sign of a bubble in the industry. The phenomenon of unicorns is quite controversial. The term was introduced by venture capital investor, Aileen Lee, in 2013 to describe rare tech startups that were valued at more than $1 billion. In finance, “unicorn” is a term that describes a privately-owned startup with a valuation of over $1 billion.
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