Unicorns Ruled for a Decade. Tech Needs a New Beast.

It’s been a decade since the term “unicorn” was coined by Silicon Valley venture capitalist Aileen Lee to describe startups that reached a $1 billion valuation. The name quickly became coveted. Yet today, unicorns aren’t so rare. Having reached a peak in the heady, liquid days of 2021, the number of startup unicorns being created globally is now in decline, to 95 last year from 621 in 2021, according to market intelligence firm CB Insights, thanks in part to higher interest rates and greater scrutiny from investors.

In some ways, that has been a healthy correction. As the rise of generative AI threatens to create more froth in the market once again, though, investors should maintain their focus on startups that have strong fundamentals as well as long-term promise. Here’s a new name for firms that fit the bill: thoroughbreds.