How to create a $1 billion business? Here are the top 5 industries in which unicorn companies
Analysts at CB Insights found , that this year the number of unicorns (startups, which are estimated to be at least $1 billion even before the IPO) is growing rapidly again. Where do they appear? About 40% (103 start-ups) of the current unicorns are concentrated in five main sectors – data analysis (10), finteh (31), health (20), software development and internet services (25), services on demand. (17)
Most unicorns (47%) open in the United States and are gradually catching up with China (30%).
The most expensive unicorns
- As of August 2018, there were 260 unicorns in the world (startups, which are valued at least at $1 billion even before the IPO), with a total value of about $840 billion, the volume of attracted investments – about $201 billion. 53 companies became unicorns this year, last year – 70 (+60% compared to 2016).
- 17 private companies (7% of the total) are valued as decacorns and cost more than $10 billion, the world’s most expensive private company is Uber, $68 billion, and China’s Didi Transportation Service ($50 billion), China’s Meituan Dianping, which is engaged in the wholesale and delivery of products ($30 billion), Airbnb ($29.3 billion) and SpaceX ($21.5 billion) are also in the top five.
We’ve made major business media in the country, now we’re doing better – subscribe to The Bell.
- About 40% (103 start-ups) of the current unicorns are concentrated in five sectors: data collection and analysis, finance, healthcare, software development and internet services, and on-demand services.
- The largest number of unicorns is in software and online services (15%), followed by e-commerce (14%) and fintech (12%). In e-commerce, the most expensive company is Meituan Dianping, among online services is Infor ($10 billion) and Slack ($9.4 billion), and the Chinese online finance market is Lu.com’s most expensive financial startup ($18.5 billion).
- In the on-demand services sector, 19 unicorns are valued at $170 billion, with leaders being the same Uber and Didi.
- The category “other,” including real estate, renewable energy, aerospace, writes CB Insights. Here, for example, such companies as SpaceX and a new investment of co-founder of Uber Travis Kalanik – a startup for resale of real estate Opendoor – are presented.
- .. Here are just a few areas where startups have grown into unicorns – clothing, entertainment, music, computer games, devices for young children and infants, 3D-printing.
China is catching up with the United States
- . The share of China, on the contrary, increased from 23% to 30% during this time. The remaining unicorns are based in the United Kingdom (6%), India (4%) and Israel (2%). In other countries, there are no more than three unicorn companies.
- However, the location is not so important, writes Inc. and gives an example: Luxembourg with a population of less than 600 thousand people also has its own unicorn company.
Find out what’s behind the latest news.