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Why Should One Invest In Unicorn Private Equity?

  • Writer: Rajesh Desai
    Rajesh Desai
  • Dec 2, 2021
  • 2 min read

Companies that valued more than a billion dollars were so rare before 2013 that their existence almost seemed mythical and thus the term ‘unicorn’ was coined to refer to such highly valued start-ups. However, they are not such a rarity in modern times as governments across the world have launched a lot of schemes and initiatives in order to help build a nurturing environment for such highly successful start-ups in their respective countries. The huge government support is one reason among the many as to why investing in unicorn private equity is so special. To clarify further, here are 3 other benefits of investing in unicorn startups -

  • Company buy-outs

Many large corporations like Facebook, Google, Apple, Windows, Amazon, etc, do not expand their businesses into a new industry domain from scratch rather they prefer to buy the successful startups in their targeted industry. This is a boon for investors as such buy-outs amounts are huge and are able to provide an amazing return on investment.


  • Changing the consumer behavior

Google changed the way we search the internet, Facebook changed the way we interact with our friends and family, Amazon changed the way we shop. Most of the highly successful companies aim to change consumer behavior in a way that they never want to go back to the old normal. This helps the companies encash on building a new market altogether for themselves and also get a loyal customer base. As an investor this is good news as with the consumer behavior change, you get a set of people who will always be your customers and as a result, there are now fewer chances of your investment to go against you once this stage is achieved.


  • Get Big Quick - Adoption of the GBQ strategy

Many startups today do not believe in expanding themselves in the traditional slow and steady way, rather they would burn more money at the start and adopt market capitalization strategies that allow them to grow exponentially big in a reasonably short period of time. This is an amazing benefit for the investor as their investment reaches its maturity stage pretty quickly.

I hope this answer helps you understand the benefits of investing in unicorn private equity.


I hope this answer helps you understand the benefits of investing in unicorn private equity.


Please Read The Original Post Here: Why Should One Invest In Unicorn Private Equity?



 
 
 

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