|
The word ‘Unicorn’ is a
word coined with those successful start-ups. The “unicorn” was primarily a
concept among U.S. companies in the beginning. In summary, Unicorn is for
describing a start-up with a valuation of over $1 billion. The unicorn was
first coined by venture capitalist Aileen Lee in 2013. Today, it spans across the globe identifying
new unicorns rising through the ranks each year in different geographies. Globally, the last two decades have witnessed
the start-up boom, and flow of capital into new ventures. Thus, this is the
natural outcome of identifying Leaders from the rest in the start-up world.
In the Start-up sphere,
the ultimate mark of success is entry into the ‘unicorn club of late. Thus, all
start-ups initiate their business plan with a focus to reach the Unicorn in
‘x’s years. However, for start-ups that
have successfully raised funding, the prospect of reaching these lofty heights
is smaller than 1%. It can be seen from the following market intelligence. As
of June 2021, there are more than 700 unicorns around the world. These tech
start-ups are collectively worth over $2T and believe to have raised a combined
capital of $426B. Thus, it shows
approximately 1% of start-ups reach the unicorn status.
The types of a start-up
which reach the Unicorn club keep on changing every year. There are multiple factors associated with
it, and mostly technology and market acceptance are the major factors. In 2021, the patterns of Unicorns are moving
more toward the Fintech sector. The
uniqueness of Fintech is that it encompasses nearly all new technology that
seeks to improve and automate the delivery and use of financial services. It
leads the herd with 15% of unicorns existing in this space. It is followed by
eCommerce and marketplace. At 13%, start-ups in the eCommerce and marketplace
industries closely follow Fintech.
The majority of unicorn
start-ups were found in the USA, and about 44% of unicorns were found there.
The USA and China top the list with 77% of the market capitalization in the
unicorn market.
In the USA, Internet
software and services are the foremost common sector for unicorns, with 19% of
the country’s unicorns working within this sector. In China E-Commerce
start-ups command the prime share of the market at 22%, internet software and
services sit at just 9%. This is unsurprising given that majority of all global
eCommerce now happens in China and its digital economy continues to expand.
The UK – Fintech is far
and away from the most important sector, with 40% of its 15 unicorns working in
finance. The United Kingdom is one of the few places where the amount of
banking and payments companies has risen. Since 2005, there are 3x times as
many financial businesses in the UK. London has the highest concentrations of
financial institutions in the world.
According to market data,
7.1% of the start-ups in the world operate in the Fintech industry, Life
sciences, and healthcare with 6.8%, Artificial Intelligence with 5%. The highest-valued private start-up in the
world is Bytedance from China with $75 billion. According to Startup Statistics
(2021), 60% of entrepreneurs believe that AI is currently the most promising
innovative technology
DART Consulting provides
business consulting through its network of Independent Consultants. Our services include preparing business
plans, market research, and providing business advisory services through the
network of Independent Consultants. More
details at https://www.dartconsulting.co.in/dart-consultants.html
|
