A "unicorn" in venture capital parlance is a $1 billion company, and a publicly-traded incubator that hopes to grow the next unicorn is Spectral Capital Corp (FCCN). Spectral Capital is a startup incubator that invests in fast-growth technology companies, similar to famous venture capital firms like Andreessen Horowitz, Sequoia, Venrock, Accel and Greylock. Spectral Capital invests in founders and helps them rapidly test, deploy and refine their services while "incubating" under its care. Incubators provide capital and services to their incubating companies, often handling recruitment, technology, accounting and legal to jump-start their growth. Because shares of Spectral Capital are public (stock symbol "FCCN"), anyone is able to buy a portion of this incubator and benefit from its performance.
Unicorns often achieve a $1 billion valuation within one year, e.g. Instagram, Uber, Slack and Twitch. Indeed, almost all modern unicorns are therefore born as private – not public – companies. This is a major change since the days of Google (GOOG), Amazon (AMZN) and AOL (AOL) – all of which became unicorns after going public. Continue Reading »