In 2013, the time period unicorn was coined by Aileen Lee, a enterprise capitalist and founding father of the funding agency Cowboy Ventures. The time period refers to privately held startups valued at $1bn or extra.
The variety of world unicorn startups has grown to greater than 750 from a dozen over the previous few years, value a mixed $2.4trn.
Know-how startups raised practically $300bn the world over in the course of the first six months of 2021, which was nearly as a lot as in the entire of 2020.
Based on CB Insights, a market knowledge supplier, there was a quarterly file of 136 new unicorns established between April and June. In contrast with the identical interval final yr, the variety of funding rounds above $100m tripled to 390.
Tech startups have developed new merchandise that look like attracting file breaking investments. Some 25% of the funding within the second quarter went to financial-technology companies and many it flew into synthetic intelligence, digital well being, and cybersecurity.
Though American and Chinese language startups proceed to dominate the fundraising, the recipients are getting extra world. Previously quarter, the share flowing to different markets grew from round 25% in 2016 to 40%.
Flipkart, an e-commerce agency in India, raised $3.6bn in a spherical that valued it at $38bn in July. Seize expects to go public in New York this yr at a valuation of $40bn.
The growth can maybe be traced to 2 components: a divestment spree by the startups’ early venture-capital backers and larger competitors amongst buyers – and new gamers leaning into the tech-investing enterprise, reminiscent of pension funds, sovereign wealth funds, and household workplaces,
These new consumers are increasing into markets that was once dominated by VC companies.
In the meantime, the venture-capital growth may be a threat for buyers. Many lately listed unicorns are persevering with to bleed money. The Economist calculated that those that went public in 2021 made a cumulative lack of $25bn of their newest monetary yr.