The Trillion-Dollar Startup Era: What Lies Ahead for Private Companies and Investors

The Trillion-Dollar Startup Question

Financial analysts and venture capital experts are increasingly debating whether privately-held startups could soon reach trillion-dollar valuations, according to industry reports. This speculation comes as OpenAI’s reported $500 billion valuation demonstrates the rapid acceleration in private company worth, with sources indicating that the landscape has transformed dramatically since 2018 when Uber’s $76 billion valuation represented the peak of startup worth.

The Trillion-Dollar Startup Question
Historical Context and Current Trajectory
The Terminology Challenge
Investment and Exit Implications
Market Realities and Expert Skepticism
The Broader Ecosystem Impact

Historical Context and Current Trajectory

The report states that as recently as August 2018, no public companies had reached trillion-dollar market caps, with Apple becoming the first to achieve this milestone. Since then, multiple technology giants including Meta, Nvidia, Microsoft, Alphabet, and Tesla have followed suit, with Apple reportedly reaching a $4 trillion market capitalization. Analysts suggest that if private companies continue their current growth trajectory, trillion-dollar startups may become inevitable.

The Terminology Challenge

As valuations escalate, industry professionals are questioning what to call these massive private companies. According to Bessemer partner Talia Goldberg, “Calling a trillion dollar company a ‘startup’ is an exercise in branding. It is a way for founders to keep the innovation narrative.” Goldberg reportedly added that the total valuation of companies on Bessemer’s Cloud 100 list has grown tenfold over the past decade, with average private valuations potentially reaching $112 billion soon.

The debate has spawned numerous suggestions for new terminology. Touring Capital general partner Samir Kumar proposed “triceratops,” noting that “if you think of triceratops you think of an unstoppable creature and brute force. Kind of like how trillion-dollar valuation startups will be created.” Other suggestions include “gigacorn” from Costonoa Ventures partner John Cowgill and “terracaps” from Felicis founder Aydin Senkut, who stated that “‘Terra’ for trillion. It’s the next logical jump after unicorns and decacorns. At that scale, ‘startup’ doesn’t cut it. A terracap isn’t really a startup. It’s a sovereign economy with a cap table.”, according to technology insights

Matrix managing partner Antonio Rodriguez reportedly suggested “Kaiju-corns,” explaining that “like the fabled monsters from the center of the Earth, they are big and strong and stomping all over the rest of the startup ecosystem.”, according to market developments

Investment and Exit Implications

The potential emergence of trillion-dollar private companies raises significant questions about venture capital models and exit strategies. According to reports, Touring’s Kumar questioned what exit would be possible for such massive valuations: “If you’re investing in a startup worth a trillion dollars, what exit are you underwriting to? How is there any other exit besides going public?”

Analysts suggest that staying private indefinitely, similar to SpaceX’s approach, might become more common, with secondary markets and tender offers providing liquidity for founders and early investors. The report indicates this path may be more realistic than traditional public offerings for companies reaching such extraordinary valuations.

Market Realities and Expert Skepticism

Despite the enthusiasm for soaring private valuations, some experts urge perspective. Amplify Partners GP Sunil Dhaliwal reportedly stated that “we should give the unicorn metaphor a rest. It served its purpose, but saying decacorn, centicorn, or kilocorn has become meaningless.” Dhaliwal emphasized that while a few companies might reach trillion-dollar status, this doesn’t represent a new category of companies in the near term.

However, investor enthusiasm for private companies, particularly in artificial intelligence, shows no signs of slowing. According to Felicis’s Senkut, “The biggest delta we’ve ever seen now exists between private and public growth. The best private companies are growing at 400%, while the best publics struggle to hit 20%. Capital is going to go where the growth is. And right now, that’s private markets.”

The Broader Ecosystem Impact

The discussion extends beyond terminology to fundamental questions about regulation, disclosure requirements, and how retirement plans might incorporate private assets. As private companies achieve valuations rivaling national economies, analysts suggest the entire framework for understanding corporate scale and growth may need re-evaluation. The emergence of potential “terracaps” or “Kaiju-corns” would represent not just numerical milestones but fundamental shifts in how companies grow, raise capital, and ultimately provide returns to investors.