Step 1) Start a company that makes flurbles. Step 2) I invest in a billionth of your company for $1. Step 3) Your company is now valued at a billion dollars.

Step 1) Start a company that makes flurbles. Step 2) I invest in a billionth of your company for $1. Step 3) Your company is now valued at a billion dollars. Step 4) Hire an employee Step 5) Try to make payroll with that $1 Congratulations, your company is now an insolvent unicorn. The reality is only slightly more complex, but not much.