Startups $1 Billion Valuation
Not a lot of startups are resilient enough to vanquish the initial challenges and reach $1 billion valuation, also known as the “unicorn” status. But some of them eventually manage to get there a lot faster than others. A couple of years ago Dan Price wrote about how Venture Capitalists are using big data analytics to spot potential investment plays.
For those who are regularly involved with SMEs, venture capital, and company valuations, it is common knowledge that start-ups that exit for more than $1 billion dollars are extremely rare – often termed ‘unicorn’ companies.
Despite their rarity, it should come as no surprise that venture capitalists are very keen to identify them at the earliest possible stage. The problem is that it is much easier said than done. Traditionally, locating, predicting and investing in unicorn companies has required a lot of time and effort; a good investment could reap huge rewards, whereas a poor investment could cause bankruptcy, yet a good VC that could maximise returns consistently was hard to find…
When the term “unicorn” was first coined around 2002-2003, only a few startups could qualify for that prestigious and rather enviable title. While finding the actual number of unicorns in existence today is a rather herculean task, there is no second opinion on the fact that those belonging to the tech variety have been increasing in number at a rather exponential rate.
Infographics below have been discovered via Visualcapitalist.
Unicorn Births Per Year
The Fastest Startups
By Brent Anderson