In today’s top notch competition in startup world, every startup is in the race of becoming a Unicorn Startup and being a founder of unicorn startup is dream for all. But the question is, what is a Unicorn startup ? And what does it actually mean to be one, as far as business is concerned.
If you are new to the startup world and going to start your entrepreneurship journey, then you must read this article as we are going to find the answers to above questions and much more. So, stay tuned.
What Is ‘Unicorn’ Startups ?
‘Unicorn’ in business terms, simply referred to those companies which has a market value of over $1 Billion or 7000 Crore Indian Rupees. Startup with such valuation are known as Unicorn Startups.
Further, the start-ups companies with over $10 Billion market valuation are known as Decacorn and those values over $100 Billion are termed as Hectocorns.
The term unicorn, a mythical creature, was first coined as a business term by Aileen Lee of CowBoy Ventures in 2013, to indicate the rarity of such ventures similar to those of Unicorns.
“ At the time when the term unicorn came into picture in 2013 as a business term, there were only 39 companies which fits in this definition. Simply, only 39 unicorns start-ups.”
How the Unicorn Startups are valuated
The Unicorn start-ups are valuated very differently and uniquely as compared to the well established companies.
For established companies, the market valuation is done keeping in mind the past year performance. Whereas, for start-ups, the valuation is done on the basis of their estimated long term development and growth opportunities within their potential target market.
If we talk about numbers only, then in 2020, there are over 601 unicorns start-up in the world according to Crunchbase report.
As per Statista‘s report in January’2020, United States is at the top of the list in producing highest numbers of unicorns start-ups, with over 265 companies in its bucket, followed by China with 204 companies in its bucket. And at the third is United Kingdom with over 24 unicorn companies inits bucket.
If we talk about India, then India is at fourth place in the list of producing unicorn companies with 21 companies in its bucket.
Yes, there is still lots of opportunities and uncharted territories in India to be looked upon to increase the number and top the list in coming decade.
Now, lets talk about some of the great unicorns globally and from India, specifically :
Top Global Unicorns :
1 – Toutiao (ByteDance) :
With market valuation of over $140 Billion dollars, Byte dance is one of the top unicorns company in 2020. This company joined the unicorn club on 7/4/2017. Coming from China, Bytedance is top unicorn startup of Artificial Industry, backed by Sequoia Capital China, SIG Asia Investments, Sina Weibo and Softbank Group.
2 – SpaceX :
The market valuation of SpaceX is over $46 Billion. Coming from United States, SpaceX joined the unicorn club in 01/12/2012. SpaceX is space research startup and has recently amazed the world with it Falcon-9 rocket. SpaceX is backed by Founders Fund, Draper Fisher Jurvetson, Rothenberg Ventures.
3 – Airbnb :
The market valuation of Airbnb is over $18 Billion. Coming from United States, Airbnb has joined the unicorn club in 26/07/2011. Airbnb is globally known travel and hospitality industry company. Airbnb is backed by General Catalyst Partners, Andreessen Horowitz, ENIAC Ventures.
Above is few of the to global unicorn companies, now lets talk about some Indian companies which went on to become global unicorns.
1 – One97 Communication or PayTm :
The market valuation of One97 Communication is over $16 Billion. Coming from India, this company joined the unicorn club in 05/12/2015. One97 Communication is globally known Fin-tech industry company and is backed by Intel Capital, Sapphire Ventures, Alibaba Group.
2 – BYJU’s :
The market valuation of BYJU’s is over $10.8 Billion. Coming from India, BYJU’s joined the unicorn club in 25/07/2015. BYJU’s is a well known Ed-tech industry company and is backed by Tancent Holdings, Lightspeed India Partners, Sequoia Capital India.
3 – OYO Rooms :
The market valuation of OYO Rooms over $10 Billion. OYO Rooms is one of the globally known Indian originated travel and hospitality industry startup. This company joined the unicorn club in 25/09/2018 and is backed by SoftBank Group, Sequoia Caapital India, Lightspeed India Partners.
4 – Snapdeal :
The market valuation of Snapdeal over $7 Billion. Snapdeal is well known Indian originated E-commerce & Direct-to-Consumer industry startup. This company joined the unicorn club in 21/05/2014 and is backed by SoftBank Group, Blackrock and Alibaba Group.
5 – Ola Cabs :
The market valuation of Ola Cabs over $6.32 Billion. Ola Cabs is one of the globally known Indian originated Auto & Transportation industry company. Ola Cabs joined the unicorn club in 27/10/2014 and is backed by Accel partners, Softbank Group, Sequoia Capital,
As discussed earlier, joining the Unicorn Club is always a dream for all the startup founders and entrepreneurs. And it is one of the biggest achievements and establishment as a company and trademark for success.
If your are looking for starting up your own company and have a dream of joining the unicorn club then you must read our article ‘Start-Up & Everything You Need To Know Before Even Starting’. This article will help you with all your needs of what is initially required to start an business and reach success.
I hope this article has helped you in getting some insights of unicorn companies present globally and what does it actually mean of being a unicorn company.
Also, do share your thought and feedback about this article and mention your favorite unicorn company as well.