Top Unicorns as of 2019, Fintech, Vtech, Startup List, Finance, Silicon Valley and Stock Market

What’s A Unicorn?

A Unicorn Company or Unicorn Startup is a private company with a valuation of over $1 billion. As of January 2019, there are more than 300 unicorns around the world. Variants include a decacorn, valued at over $10 billion, and a hectocorn, valued at over $100 billion.

The term was invented in 2013 by venture capitalist Aileen Lee, choosing the mythical animal to represent the statistical rarity of such successful ventures.

Where To Find A Unicorn?

Where Can I Find A Unicorn? Mostly Unicorns are found in Tech Hubs where they are started, many unicorns were created through buyouts from large public companies. In a low-interest and slow-growth environment, many firms such as Apple, Facebook, and Google focus on acquisitions instead of focusing on capital spending and internal investment project development.

Some large companies would prefer to reinforce their businesses by buying established technology and business models instead of creating them themselves.

Unicorn Finance / Unicorn Fund

Unicorn Venture Capital – It comes down to potential and opportunity for high-growth businesses looking for the highest possible valuations. When investors of high-growth businesses decide whether or not to invest in a business, they are looking for signs of a home run to make exponential returns on their investment along with the right personality that fits the business.

Venture capital firms have to believe in the vision of both the entrepreneur and the company as a whole to give such high valuations in funding rounds. They must believe that the company can evolve from its unstable, uncertain present to a company that in the future can generate and sustain moderate growth.

Unicorn Companies as of 2017
Unicorn Companies as of 2017

Fintech Unicorns and Unicorn London

San Francisco is home to the most Fintech unicorns – companies valued at 1bn or more than 1bn with nine of the 29 fintech unicorns globally based in the Bay Area, while London came close second with seven housed in the UK capital, data from Robert Walters ‘ recruitment consultancy and market analysis firm Vacancy Soft revealed.

The report, however, predicted that London could take the lead as early as this year, as the city receives 39 per cent of European venture capital funding from Fintech, with Berlin’s runner – up taking just 21 per cent of the total investment.

With 50 per cent compared to a global average of 33 per cent, the UK also enjoys any Western country’s highest consumer adoption rate Fintech, only beaten by India and China, the report found. The revenue growth of the Fintech unicorns of the UK over the past 12 months was unparalleled, rising from a combined £ 77.1 m ($ 100.8 m) revenue to £ 177.6 m ($ 232.1 m).

Meanwhile, owing to significant growth in firms like Monzo and TransferWise, e-money firms grew by 51 per cent between 2017–18. The report predicted that half of all UK payment service providers would be digital – only by 2020.

Growth led to a 61 per cent increase in London’s sector job creation in 2018 – and 18 per cent in non – capital regions – as FinTech became the UK economy’s fastest growing sector.

Unicorn Investment

To assess a company’s potential future growth, an in-depth analysis of the target market is needed. When a company or investor determines its market size, they need to consider a few steps to determine how big the market really is:

  • Defining the sub-segment of the market (no company can target 100% market share, also known as monopolization)
  • Top-Down market sizing
  • Bottom-Up analysis
  • Competitor analysis

After a reasonable estimate of the market, a financial forecast can be made based on the size of the market and how much a company believes it can grow over a certain period of time.

To properly assess a company’s valuation after the revenue forecast has been completed, an operating margin forecast, analysis of the required capital investments, and return on invested capital must be completed to assess a company’s growth and the potential return to investors.

Hypotheses of where a company can grow to need to be realistic, particularly when trying to get venture capital firms to give a company’s value.

Venture capitalists know that their investment is not going to be paid for another five to ten years, and they want to make sure that financial forecasts are realistic from the outset. Investors need to know what the company should be valued in the present day with the financial forecasts set. This is where more valuation methods are becoming more relevant.

This includes the three most common valuation methods:

  • Discounted Cash Flow Analysis
  • Market Comparable Method
  • Comparable Transactions

Investors can derive a final assessment from these methods and the amount of capital they offer for a percentage of a company’s equity becomes the final valuation for a startup. Financial competitors and past transactions also play an important role in providing a basis for valuing a startup and finding a correct valuation for these firms.

Unicorn Startup List | Silicon Valley Companies List

Company
Valuation ($B)
Date Joined
Country
Industry
Select Investor
1
Toutiao (Bytedance)
$75
4/7/2017
China
Digital Media/ AI
Sequoia Capital China, SIG Asia Investments, Sina Weibo, Softbank Group
2
Uber
$72
8/23/2013
United States
On-Demand
Lowercase Capital, Benchmark Capital, Google Ventures
3
Didi Chuxing
$56
12/31/2014
China
On-Demand
Matrix Partners, Tiger Global Management, Softbank Corp.,
4
WeWork
$47
2/3/2014
United States
Facilities
T. Rowe Price, Benchmark Capital, SoftBank Group
5
JUUL Labs
$38
12/20/2017
United States
Consumer Electronics
Tiger Global Management

 

Company
Valuation ($B)
Date Joined
Country
Industry
Select Investor
6
Airbnb
$29.3
7/26/2011
United States
eCommerce/Marketplace
General Catalyst Partners, Andreessen Horowitz, ENIAC Ventures
7
Stripe
$22.5
1/23/2014
United States
Fintech
Khosla Ventures, Lowercase Capital, capitalG
8
SpaceX
$18.5
12/1/2012
United States
Other Transportation
Founders Fund, Draper Fisher Jurvetson, Rothenberg Ventures
9
Epic Games
$15
10/26/2018
United States
Gaming
Tencent Holdings, KKR, Smash Ventures
10
GrabTaxi
$14
12/4/2014
Singapore
On-Demand
GGV Capital, Vertex Venture Holdings, Softbank Group

 

Company
Valuation ($B)
Date Joined
Country
Industry
Select Investor
11
Bitmain Technologies
$12
7/6/2018
China
Blockchain
Coatue Management, Sequoia Capital China, IDG Capital
12
Samumed
$12
8/6/2018
United States
Biotechnology
Vickers Venture Partners, IKEA GreenTech
13
Palantir Technologies
$11
5/5/2011
United States
Big Data
RRE Ventures, Founders Fund, In-Q-Tel
14
Global Switch
$11.08
12/22/2016
United Kingdom
Computer Hardware & Services
Aviation Industry Corporation of China, Essence Financial, Jiangsu Sha Steel Group
15
Pinterest
$10.47
5/19/2012
United States
Social
Andreessen Horowitz, Bessemer Venture Partners, Firstmark Capital

 

Company
Valuation ($B)
Date Joined
Country
Industry
Select Investor
16
Infor
$10
11/16/2016
United States
Internet Software & Services
Blackstone Group, Koch Industries
17
DJI Innovations
$10
5/6/2015
China
Hardware
Accel Partners, Sequoia Capital
18
One97 Communications (operates Paytm)
$10
5/12/2015
India
Fintech
Intel Capital, Sapphire Ventures, Alibaba Group
19
Go-Jek
$10
8/4/2016
Indonesia
On-Demand
Formation Group, Sequoia Capital India, Warburg Pincus
20
Coupang
$9
5/28/2014
South Korea
eCommerce/Marketplace
Sequoia Capital, Founder Collective, Wellington Management

 

Company
Valuation ($B)
Date Joined
Country
Industry
Select Investor
21
Guazi (Chehaoduo)
$9
3/12/2016
China
eCommerce/Marketplace
Sequoia Capital China, GX Capital
22
Coinbase
$8
8/10/2017
United States
Fintech
Y Combinator, Union Square Ventures, DFJ Growth
23
Instacart
$7.6
12/30/2014
United States
On-Demand
Khosla Ventures, Kleiner Perkins Caufield & Byers, Collaborative Fund
24
Slack Technologies
$7.1
10/31/2014
United States
Internet Software & Services
Google Ventures, Institutional Venture Partners, Index Ventures
25
Snapdeal
$7
5/21/2014
India
e-commerce
SoftBankGroup, Blackrock, Alibaba Group

 

Company
Valuation ($B)
Date Joined
Country
Industry
Select Investor
26
Roivant Sciences
$7
11/13/2018
Switzerland
Biotechnology
SoftBankGroup, Founders Fund
27
Tokopedia
$7
12/12/2018
Indonesia
Marketplace
SoftBankGroup, Alibaba Group, Sequoia Capital India
28
Tanium
$6.7
3/31/2015
United States
Cybersecurity
Andreessen Horowitz, Nor-Cal Invest, TPG Growth
29
Magic Leap
$6.3
10/21/2014
United States
VR/AR
Obvious Ventures, Qualcomm Ventures, Andreessen Horowitz
30
Lianjia (Homelink)
$5.8
4/8/2016
China
eCommerce/Marketplace
Tencent, Baidu, Huasheng Capital

 

Company
Valuation ($B)
Date Joined
Country
Industry
Select Investor
31
Manbang Group
$6
4/24/2018
China
Supply chain & Logistics
Softbank Group, CapitalG
32
EasyHome
$5.7
2/12/2018
China
Retail
Alibaba Group, Boyu Capital, Borui Capital
33
Vice Media
$5.7
8/17/2013
United States
Media
Technology Crossover Ventures, A&E Television Networks
34
Robinhood
$5.6
4/26/2017
United States
Fintech
Google Ventures, Andreessen Horowitz, DST Global
35
Intarcia Therapeutics
$5.5
4/1/2014
United States
Healthcare
New Enterprise Associates, New Leaf Venture Partners, Charter Venture Capital

 

Company
Valuation ($B)
Date Joined
Country
Industry
Select Investor
36
Outcome Health
$5
5/31/2017
United States
Healthcare
Goldman Sachs, capitalG, Pritzker Group Venture Capital
37
United Imaging Healthcare
$5
9/14/2017
China
Healthcare
China Life Insurance, China Development Bank Capital, CITIC Securities International
38
UBTECH Robotics
$5
7/26/2016
China
Robotics
CDH Investments, Goldstone Investments, Qiming Venture Partners
39
Oyo Rooms
$5
9/25/2018
India
Travel Tech
SoftBank Group, Sequoia Capital India,Lightspeed India Partners
40
Bluehole
$5
8/9/2018
South Korea
Travel Tech
Tencent Holdings, Stonebridge Capital, IMM Investment

Indian Unicorn Startups  / Unicorn Companies In India

Unicorn Stock Market News

$80 Billion of Unicorn IPOs Could Trample the Bull Market in 2019

Adopted from, fortune.com

Investors have lived through a lot lately, from the Christmas week apocalypse to last year’s Volmaggedon. Now they’ll see if they can survive a new threat: rampaging unicorns.

It’s a question of resilience—will markets hold up when their increasingly delicate surface is burdened with a cargo of new supply? Bloomberg data shows sales of equity are set to surge in 2019, a deluge with the potential to create more stress for the longest bull run ever.

It’s been a while since anyone cared about dilution inequities, and to be sure, nothing happening this year is more than a drop in the bucket next to the market’s overall value, its daily turnover, or volume of buybacks.

Still, in a world where valuations are stretched and the slightest hint of trouble can induce panic, the arrival of tens of billions of dollars worth of companies—many of them mature ones—strikes some as a recipe for volatility.

“Cycles end when everything looks great, but the point at which supply overwhelms demand,” said Michael Shaoul, chief executive officer at Marketfield Asset Management LLC. “That was true in 2000 with technology, it was true in 2005 in housing, it was true in 2008, and then again in 2011 with commodities.”

Total U.S. IPO supply as a percent of S&P 500 market capitalization is expected to almost double the average over the last five years, according to data compiled by Bloomberg using inputs from Dealogic and Goldman Sachs. An increase that big would be the largest since at least 1995, and more than three times the average yearly change over the period.

Everywhere you look, unicorns are getting restless. From ride-sharing networks Uber Technologies and Lyft to online home-rental service Airbnb, 2019 is poised to see a lot of giant companies transferred to public hands. Whether markets can handle it comes down to textbook economics—an exercise in supply and demand.

Whether there’s enough risk appetite for the deals is one question. How all the bloat affects the market at large is a much bigger one.

For Shaoul, the issue is as much share supply as the excesses it may bespeak, coming after two years in which $1.5 trillion was added to the value of five Faang companies and two reached valuations never before seen in the U.S. market. While the arrival of a bunch more Internet-powered behemoths doesn’t doom the rally, it’s another in a lengthening list of things to worry about.

“We don’t have a magic crystal to tell us having multi-trillion dollar companies listed on the Nasdaq was the high point, but it certainly might’ve been,” Shaoul said. “October and December’s sell-off was concentrated around U.S. technology in a way that no other sell-off has been. I would be critical at this point, rather than necessarily outright fearful.”

Goldman Sachs estimates that the value of IPOs in the U.S. will reach $80 billion this year, double the yearly average since 1990. To get to the forecast, the firm takes into account six unicorn tech companies that may go public whose combined valuation adds up to $150 billion.

If 20% of that hits public markets, the value of U.S. tech IPOs alone could be $30 billion, just under the yearly average. Then there’s the rest.

“Aggregate IPO activity has generally been elevated towards the end of the cycle as companies seek valuations at high multiples,” Goldman strategists including David Kostin wrote in a note in November.

Take 2007 for example, just before the financial crisis. About 290 new companies listed on U.S. exchanges with a combined deal value of $65 billion, data from Dealogic show. Both numbers were the highest since 2000.

And leading up to the dot-com rout, IPO activity was elevated for years, with deal value jumping above $100 billion in 1999 and 2000.

Part of the reason this year’s estimate is so high is because of the maturity of companies and high valuations. It’s not inconceivable Uber fetches $120 billion, while bankers have told Lyft it could be valued at up to $30 billion and Airbnb was last valued at about $31 billion.

The last time three U.S. tech companies worth more than $10 billion went public in the same year was 2000.

For Kathleen Smith, principal at Renaissance Capital, a provider of IPO-focused institutional research and exchange-traded funds, there’s a fair chance this year’s take will exceed Goldman’s estimate. Could that much issuance shock the market and cause volatility? “There’s no doubt about it,” she said.

A few things augur poorly for orderly absorption, among them changes in the market’s contour since the dot-com bubble, according to Smith. One is the growth of passive investing and decline of active management, which removed potential buyers. Individual investors don’t participate as much in IPOs now as they did 20 years ago, and private markets have ballooned.

“If you look at what it took to have a robust $100 billion plus IPO market, we don’t have a lot of those dynamics now,” Smith said. “You have the extra issue of, oh my gosh, look at all this supply. And we’re in a much different market. Where’s the demand? ”

And then there’s the latest market convulsions that raise a question for all the giant private companies: why’d you wait so long? After all, between 2015 and 2017, the Cboe Volatility Index averaged 14.5% to 25% below the long-term average and even further from the average since the S&P 500’s September record. Yet, IPO issuance was the quietest in years.

“We’re in a completely different dynamic and the market’s just come off of a terrible correction,” said Smith. “It amazes me that all these companies have stayed private so long. My mother would say, ‘You need your head examined for not coming out in the market in 2017.”’

The push-and-pull between passive and active management is on track to reach a tipping point in 2019, with passive funds set to hold more assets than their active counterparts by year-end. While ETFs can incorporate newly public companies in their holdings, they often take longer to do so.

Take Spotify Technology S.A. for example, which went public last April—of more than 1,500 U.S. listed equity ETFs, only 1% hold it, according to data compiled by Bloomberg.

Should the market come down with IPO indigestion, it could be a bad omen for stock prices. Typically, investors like to look to similar, already public companies for an idea of proper valuation. If the market is lower, IPOs will price lower. Meanwhile, if an investor in a similar sector wants to buy the newly public firm but has no extra cash to do so, they may sell out of existing holdings to make room.

“It’s a little bit of a self-fulfilling prophecy because it’s going to put downward pressure on the comps, which potentially puts downward pressure on the valuation of the IPO itself,” said Erin Browne, managing director and portfolio manager for asset allocation at PIMCO.

“The overhang of supply on markets can be a deterrent for global equity markets, but you see it less here in the U.S. Because of the depth of the U.S. market, it can handle a pretty robust supply as long as economic conditions are fairly robust and equity markets are doing well.”

With economic output in the U.S. set to increase 2.5% this year and earnings forecast to grow 6.7%, there’s reason for optimism. But after December’s near bear market encounter, even with the subsequent comeback, nerves remain.

“Everything changed in the fourth quarter of 2018—now sentiment seems to be much more fragile around these concerns about macro things. So we’ll see if it actually affects IPO activity,” said David Ethridge, U.S. IPO services leader at PricewaterhouseCoopers. But even if a large amount of issuance materializes, “when I look at that and think about real impact on the larger public market, it strikes me as sort of a ripple rather than a tidal wave.”