This is the age of new labels. Companies above $1 billion in private valuation are now called ‘unicorns’ although, just like the fabled creature, the valuation might prove mythical when the firm lists on a stock exchange.
Another emerging label is ‘archangels’ that refers to angel investors who are at the forefront in investing at the seed or initial stages of a startup when raising funding is tough for unproven ideas. Unlike unicorns though, there is nothing fictional about it – these are concrete funding rounds that give a startup the resources on which it can build on. Failure to get angel or seed funding — as happens often — puts the future of a budding startup in peril.