The emergence of the term 'sonicorn' describes startups valued between $500 million and $999 million, as the number of 'unicorns' also rises globally.
The article discusses the rising popularity of the term 'sonicorn,' referring to startups valued between $500 million and $999 million, as reported by The New York Times. This new classification has emerged alongside the traditional 'unicorn,' which denotes startups valued over $1 billion, highlighting the increasing number of startups achieving significant valuations. The conversation around these terms reflects a broadening of the startup ecosystem, indicating a healthy growth in entrepreneurship.
According to the report, there are over a thousand unicorns worldwide, and the rise of 'sonicorns' has been particularly notable in the U.S., with over 2000 identified as of the end of the previous year, potentially signaling a shift in how the startup landscape is viewed. Financial expert Ilya A. Strebulaev from Stanford University notes that the surge in artificial intelligence innovations has positively impacted these valuations, suggesting a vibrant market for startups.
Looking ahead, Strebulaev predicts 2026 to be a pivotal year for sonicorns, as they strive to become unicorns. This expectation underscores the ongoing evolution of tech startups and the financial environment that supports their growth, highlighting the competitive atmosphere between emerging companies and established giants in the tech industry.
