Soonicorns Surge: Startups on Verge of Unicorn Status

The landscape of private startups is rapidly evolving with the emergence of 'soonicorns,' companies valued between $500 million and $999 million, on the path to unicorn status. This growth is significantly propelled by the current artificial intelligence boom, which has made it easier for new ventures to secure funding at impressive valuations.

Historically, achieving a billion-dollar valuation as a private startup was a rare feat. However, with over a thousand unicorns now in existence, the terminology has expanded to include decacorns ($10 billion+) and hectocorns ($100 billion+), alongside soonicorns. Stanford professor Ilya A. Strebulaev notes a dramatic increase in soonicorns in the United States, with over 2,000 reaching this status by the end of last year.

Dr. Strebulaev anticipates 2026 will be a pivotal year for soonicorns, largely due to AI's impact on funding accessibility. Some firms founded just a couple of years ago may achieve soonicorn status this year. While the term 'soonicorn' signifies a company's current valuation stage rather than a guaranteed future, it highlights a trend of faster scaling and longer periods spent in private markets compared to two decades ago.

This trend of startups remaining private for extended durations is reshaping the venture capital ecosystem. Although public markets have shown volatility, many mature startups are capitalizing on this environment. Furthermore, major hectocorns like Anthropic, OpenAI, and SpaceX are reportedly preparing for public offerings in 2026, signaling potential shifts in the market.