Decacorn: Everything You Need to Know
A decacorn is a term that describes a privately held company with a valuation of more than $10 billion
What Is a Decacorn?
A decacorn is a term used to describe a privately held company with a valuation that exceeds $10 billion. The term is based on a combination of the prefix “deca-” and the word “unicorn.” Deca- means 10, while unicorn refers to a startup valued at $1 billion or more.
The term was coined in 2013 by venture capitalist Aileen Lee, who used the mythical creature as a metaphor for the rarity of such companies. Decacorns are typically young, high-growth companies that have attracted significant investment from venture capitalists. They usually are in industries such as technology and healthcare.
Decacorns tend to be valued on their potential for growth, not their financial performance to date. When a decacorn is acquired or goes public, it can no longer be called a decacorn.
Key Takeaways
- A decacorn is a private company, usually a startup, with a valuation greater than $10 billion.
- Decacorns frequently are new, fast-growing, innovative companies that have attracted significant venture capital investment.
- Decacorns have emerged mostly in the technology and healthcare industries.
- Decacorns often may consider going public through an initial public offering (IPO) or seek other exit opportunities that can lead to good returns for early investors and employees.
- The top 10 decacorns at the time of this writing were concentrated mostly in the United States and included ByteDance (TikTok’s owner), SpaceX, Stripe, and Fanatics.
Characteristics of a Decacorn
Characteristics of a decacorn may include:
- Valuation: A decacorn has a valuation greater than $10 billion. This indicates that investors perceive significant potential and value in the company.
- Growth: Decacorns typically experience rapid and sustained growth in terms of revenue, user base, market share, or other key performance indicators. They often outpace their competitors and the overall market in which they operate.
- Innovation: These companies are known for introducing disruptive business models, technologies, or products that challenge traditional industries or create markets.
- Positioning: Decacorns establish a dominant position within their industry, often becoming market leaders or key players in their respective sectors.
- Reach: Many decacorns have a global presence, expanding their operations beyond their home markets and targeting customers worldwide.
- Funding sources: Funding for decacorns is often secured from a variety of sources, including renowned venture capital firms, strategic investors, and institutional investors.
- Potential for IPO or exit: Decacorns frequently generate interest from the public markets and may consider going public through an initial public offering (IPO) or seek other exit opportunities, allowing early investors and employees to realize returns.
- Vision: Decacorns typically have a long-term vision and strategic plan to sustain their growth, expand into new markets, and continually innovate to maintain their competitive advantage.
Understanding Decacorns
Decacorns are formed through a combination of factors, including exceptional growth, disruptive business models, and investor interest. First, the startup develops a unique and innovative idea, product, or service that has the potential to disrupt an industry or address a significant market need. Then, the company secures initial funding from angel investors, venture capitalists, or other sources to support its early-stage growth and development.
Another key step to a company becoming a decacorn is market traction. The company begins to demonstrate this by acquiring a large customer base, achieving significant revenue growth, and expanding in its market. Next, the company successfully scales its operations through talent development, process efficiency, and leveraging technology to support its growth.
Note
An emerging decacorn raises additional funding through multiple rounds of financing, typically referred to as Series A, B, C, and so on. Each round tends to increase the company’s valuation. Strategic partnerships or collaborations with other organizations provide expertise, resources, or market access to accelerate the decacorn’s growth.
Also, there is continued innovation and disruption for a decacorn. The company maintains its competitive edge by continually improving and staying ahead of market trends, ensuring that it remains an attractive investment opportunity.
Finally, there are exit opportunities. The company may consider various strategies, such as an IPO, merger, acquisition, or other corporate events that let investors and employees realize returns on their investments.
It should be noted that this is not a one-size-fits-all process. Each decacorn has its unique story of reaching a $10 billion valuation. Also, not all startups aspire to become decacorns, as some companies prioritize profitability, sustainability, or other strategic objectives over achieving high valuations.
Unicorn vs. Decacorn vs. Hectocorn
A unicorn is a private company with a valuation at least $1 billion. On the other hand, a decacorn is a private company valued greater than $10 billion, and a hectocorn is valued at more than $100 billion. These terms describe the size and growth potential of privately held companies. The main difference among unicorns, decacorns, and hectocorns is their valuations.
Unicorns are the most common type of high-growth company. Decacorns are less common, and the larger hectocorns are rare. There are only a handful of hectocorns in the world. All of these types of privately held companies are attractive investment targets for venture capitalists, and they have the potential to generate significant returns for investors.
Top 10 Decacorns
The table below shows the top 10 decacorns as of June 2024.
| Top 10 Decacorns | ||||
|---|---|---|---|---|
| Company | Valuation ($ Bn) | Country | Industry | Select Investors |
| ByteDance | 225 | China | Technology | Sequoia Capital China, SIG Asia Investments, Sina Weibo, Softbank Group |
| SpaceX | 150 | U.S. | Industrials | Founders Fund, Draper Fisher Jurvetson, Rothenberg Ventures |
| OpenAI | 80 | U.S. | Enterprise tech | Khosla Ventures |
| SHEIN | 66 | China | Consumer and retail | Tiger Global Management, Sequoia Capital China, Shunwei Capital Partners |
| Stripe | 65 | U.S. | Financial services | Khosla Ventures, LowercaseCapital, capitalG |
| Databricks | 43 | U.S. | Enterprise tech | Andreessen Horowitz, New Enterprise Associates, Battery Ventures |
| Revolut | 33 | U.K. | Financial Services | Index Ventures, DST Global, Ribbit Capital |
| Fanatics | 31 | U.S. | Consumer & retail | SoftBank Group, Andreessen Horowitz, Temasek Holdings |
| Canva | 25.4 | Austrailia | Enterprise tech | Sequoia Capital China, Blackbird Ventures, Matrix Partners |
| Epic Games | 22.5 | U.S. | Media & entertainment | Tencent Holdings, KKR, Smash Ventures |
Valuation of Decacorns
There were 50 decacorns worldwide in June 2024, with a total valuation of over $1.2 dollars. ByteDance is the largest decacorn, with a $225 billion valuation, while the smallest decacorns include Huolala, Gusto, Chehaoduo, Talkdesk, Notion, Digital Currency Group, and KuCoin, each with a valuation of $10 billion as of June 2024.
Geographic Breakdown of Decacorns
From a geographic perspective, decacorns can be found largely in the U.S., China, and the United Kingdom. Among the 50 decacorns in the world, 31 of them are in the U.S., 10 are in China, and three are in the U.K.
Industry Breakdown of Decacorns
From an industry perspective, decacorns can be found largely in the fintech, internet software and services, and ecommerce and direct-to-consumer industries. Among the 50 decacorns in the world, 18 are in enterprise technology, 11 are in financial services, another 10 are in consumer and retail, six are in media and entertainment, four are in industrial, and one is in healthcare and life sciences.
How Many Decacorns Are There in the U.S.?
There were 31 decacorns in the U.S. as of June 2024.
What Is a Hectocorn?
A hectocorn is a privately held company with a valuation of more than $100 billion. The term is a combination of the Greek prefix “hecto-,” meaning “100,” and suffix “-corn,” which is a reference to the mythical unicorn. Hectocorns are extremely rare—there were just two in the world as of June 2024.
What is a Soonicorn?
A soonicorn is a privately held company that is about to become a unicorn. That is, the company is about to reach a valuation of more than $1 billion. The term “soonicorn” is a combination of the words “soon” and “unicorn.”
The Bottom Line
A decacorn is a privately held startup company that has achieved a valuation of more than $10 billion. These companies are characterized by their exceptional growth, disruptive business models, and strong investor interest.
Decacorns typically exhibit rapid expansion, strong market traction, and a dominant position within their industry. They often attract top-tier talent and secure funding from renowned venture capital firms and institutional investors.
Decacorns may have a global reach and a long-term vision, and may consider options for going public or other exit strategies. Their valuation distinguishes them as one of the highest-valued types of privately held companies.