Soonicorn refers to startups that have the potential to join the Unicorn (startup valuation of $1 billion) club. Soonicorns are mostly financed by Angel Investors or venture capitalists, based on future forecasts or a perceived valuation.

Venture capitalists generally invest more than their real value in such ventures. This increases the valuation of the venture and draws attention to it. So it helps to join "Unicorn Club" faster.