The dream investment must surely be the initial funding round of
a "tech unicorn" – a technology company that grows
to be valued by investors at over a billion US dollars. However,
the clue is in the name; these elusive beasts are rare indeed. So
is there any realistic possibility of an average person tracking
one down and investing?
It is certainly unlikely. In addition to the low probability of
identifying a potential unicorn, there are also protections for
investors which make it difficult for start-up companies to offer
their shares for sale to the general public. Traditionally, this
has resulted in funding primarily from venture capitalists,
business angels and, more latterly, private equity houses. Private
equity investment is typically limited to high-net worth
individuals, banks, pension funds and other institutional
investors.
