A unicorn business is a start-up that has reached a valuation of more than $1bn – and recent data has shown their enormous value across the world.
Business Leader recently profiled the UK businesses that reached this status in 2020 – who made the list?
Data researched by Trading Platforms UK, indicates that the global unicorns are now cumulatively valued at $1.7tn as of January 2021.
The valuation is for the 528 total global unicorns. With a cumulative value of $410bn, the top ten unicorns take up a share of 24.09% of the total global unicorn valuation.
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China’s AI company Bytedance is the most valued unicorn at $140bn. Vehicle hire company Didi Chuxing also from China, ranks second with a valuation of $62bn.
Elon Musk’s United States-based SpaceX is third with a value of $46bn.
Fintech firm Stripe is fourth with a $36bn valuation, followed by Roblox at $29.5bn.
Rivian, also from the U.S., ranks sixth at $27.6bn, followed by China’s video-sharing app Kuaishou with $18bn in value.
U.S. grocery delivery firm Instacart is eighth with a valuation of $17.7bn, while Epic Games is ninth with $417bn in value. Elsewhere, One97 Communications from India ranks tenth with a value of $16bn.
The report explained some of the factors surrounding the top ten most valuable unicorns.
According to the research report: “The top ten unicorns are primarily dominated by players from fintech, ride-hailing, logistics, and online video game sectors. These industries gained popularity last year during the pandemic as they helped people navigate the stay at home orders.
“The companies have capitalized on the newfound urgency of increased demand by ushering in new clients, and investors resulting in high valuations. Furthermore, the pandemic gains have contributed to the velocity by which many of these brands gained more value.”
Heading into 2021, the wave of digitisation is likely to spur more companies towards unicorn status. Other regions like India will likely keep bettering the startup environment to catch up with China and India.
The valuation will likely continue to rise for unicorns in health, education, and finance sectors that continue to drive most economies. Generally, the startups will leverage their increasing demand from last year to attract more investors and consumers.