• 405 days Will The ECB Continue To Hike Rates?
  • 405 days Forbes: Aramco Remains Largest Company In The Middle East
  • 407 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 807 days Could Crypto Overtake Traditional Investment?
  • 811 days Americans Still Quitting Jobs At Record Pace
  • 813 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 816 days Is The Dollar Too Strong?
  • 817 days Big Tech Disappoints Investors on Earnings Calls
  • 818 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 819 days China Is Quietly Trying To Distance Itself From Russia
  • 820 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 823 days Crypto Investors Won Big In 2021
  • 824 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 825 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 827 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 827 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 830 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 831 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 831 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 833 days Are NFTs About To Take Over Gaming?
Mega Deals Now Paint the Semiconductor Landscape

Mega Deals Now Paint the Semiconductor Landscape

Global semiconductor industry sales reached…

Cannabis Stocks in Holding Pattern Despite Positive Momentum

Cannabis Stocks in Holding Pattern Despite Positive Momentum

Aurora Cannabis Inc (NASDAQ:ACB) is…

5 Recession-Resistant Stocks To Add To Your Portfolio

5 Recession-Resistant Stocks To Add To Your Portfolio

There are growing predictions of…

  1. Home
  2. Investing
  3. Stocks

‘Unicorns’ Are Now Small Fry in the Era of ‘Decacorns’

Unicorn

Private startups with $1-billion valuations were coined “unicorns” in 2013, and they’ve shocked and awed the markets. But it’s not about unicorns anymore. The new legendary startups are “decacorns” and even “hectacorns”.

“Decacorn” are private startups that have hit valuations of $10 billion over a short time frame, while hectocorn” are valued at an unbelievable $100 billion.

According to data from CB Insights, as of October 1, 2021, there are more than 865 unicorns and 32 decacorns worldwide valued at a combined $2.84 trillion, and the U.S. is the largest contributor to the unicorn list, with 230 unicorns and 14 decacorns, followed by China with 225 unicorns and 9 decacorns.

By 2022, CBInsights expects there to be 1,000 unicorns. 

China’s ByteDance, the parent company of TikTok, is the biggest of them all, with a valuation of $140 billion, followed by the payment company Stripe, valued at $95 billion. Elon Musk’s rocket company SpaceX is valued at $74 billion, while ride-sharing business Didi Chuxing has a $62-billion and delivery service Instacart comes in at $39 billion.

 

Since 2020, startup unicorns have been transforming themselves into decacorns at a fast clip, while earning the first billion is the biggest challenge. After that, the money starts flowing a lot smoother. Companies that implemented technology and apps ostensibly to improve the everyday lives of people were boosted by the pandemic and lockdowns and shot into decacorn territory fastest.  

 

On average, it takes about six years for a startup to turn into a unicorn. But after that, it’s been taking only two and a half years, on average, to transform from a unicorn into a decacorn.

 

Out of those who attained unicorn status this year, the largest number comes specifically from the Software as a Service (SaaS) space, followed by fintech at 128 deals. A third of these billion-dollar companies operate in the fintech space and have a cumulative valuation of $516 billion. Currently, some 40 private start-ups gained decacorn status globally and most of them are FinTech startups.

After SaaS and fintech, the largest number of startups are from e-commerce and direct-to-consumer businesses, followed by artificial intelligence.

 

Source: CBInsights

Worldwide, more than 3,600 investors have been backing the unicorns, and most of them put all the money on a single horse. 

Yet, according to CB Insights, more than 350 institutions have investments in five or more unicorns. The largest investor is American-based Tiger Global Management, with stakes in more than 120 unicorn companies. In the first quarter of this year, Tiger Global was making around four deals a week.

Japan’s SoftBank Group is second, with investments in 69 unicorns, followed by China’s Tencent Holdings, the investment arm of the China-based internet giant, with 58.

While the U.S. and China have typically ruled the unicorn world, a new threat to that status quo is emerging--in India. Just follow Tiger Global Management, which appears to be shifting its attention to India in its hunt for the next potential hectocorn.  

For Q3 2021, India added 10 new unicorns, compared to 7 for China and Hong Kong, though not even close to the U.S. addition of double digit unicorns. Indian startups also managed to raise $10.9 billion in 347 deals--the first time they have hit that total amount of money raised in a quarter, according to media citing PwC data. 

 

Back to homepage

Leave a comment

Leave a comment