Unicorn Death

Definition

When a highly-valued startup implodes through mismanagement, fraud, or 'the market wasn't ready'—basically Elizabeth Holmes energy.

Example Usage

Our Series B investor wants to discuss potential unicorn death scenarios, which is apparently a real whitepaper at Sequoia.

Origin

Inverse of 'unicorn' status; term emerged post-2015

Fun Fact

WeWork was valued at $47B before its IPO collapsed and it filed for bankruptcy.

Source: VC risk terminology

Related Terms

Beginner

ventures

Risky business undertakings or investments that could either make you rich or teach you expensive lessons about market dynamics. In startup speak, it's what venture capitalists fund, hoping that one unicorn will make up for the nine failures. Think of ventures as business experiments where the hypothesis is "this will make money" and the results are usually mixed.

🚀 Startup / VC

Intermediate

Acqui-Hire

When a company buys another company not for its product but for its employees, which is the corporate equivalent of buying a house just for the kitchen. The product gets quietly killed while the team gets quietly absorbed and quietly regrets everything.

🚀 Startup / VC

Beginner

ditch

To abandon ship faster than a rat on the Titanic. In startup parlance, when a feature, product, or entire business model gets the axe because it's hemorrhaging money or nobody wants it. No ceremony, no fanfare—just gone.

🚀 Startup / VC

Intermediate

observer rights

The privilege to attend board meetings without voting power, typically granted to smaller investors or advisors. All the tedious meetings with none of the actual authority—basically a corporate internship.

🚀 Startup / VC

Beginner

term sheet

A non-binding document outlining the key terms of an investment deal—think of it as a letter of intent that's about as reliable as a Tinder profile. The real fun begins when lawyers turn these bullet points into a 60-page agreement.

🚀 Startup / VC

Intermediate

anchor investor

The first major investor who commits to a fund or round, giving others confidence to follow. Like the first person to dance at a party—everyone was waiting for someone brave (or drunk) enough to start.

🚀 Startup / VC

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Intermediate

ass puppet

A person who has completely surrendered their autonomy and parrots whatever someone else wants them to say—essentially...