A New Unicorn
The term “Unicorn company” was coined by Aileen Lee of Cowboy Ventures ten years ago, defined as a US-based, VC-backed startup that grew to be worth $1B+ within ten years. There were 39 Unicorns in 2013, but that number has grown to 532 today as explained in Cowboy’s new report: "Welcome Back to the Unicorn Club, 10 Years Later."
A few of the current Unicorn report insights include:
Ten years ago, 38% of unicorns were enterprise products (with the rest being consumer), but today enterprise is 78% of the total. Many new segments have been created, and the relative stability of enterprise customers has been attractive.
Many companies raised funds during the ZIRP (Zero Interest Rate Policy) period, contributing to inflated valuations. But for many of these companies the runway is now growing short, and they are desperately trying to reach profitability on remaining cash. Cowboy anticipates that perhaps 35% will end up shutting down.
The Bay area has lost ground as the hub of Unicorns although it still holds a significant lead over other regions. But cities including New York, Los Angeles, Boston, Seattle, Austin, Chicago, and Denver are each home for more than 10 Unicorns. You don’t have to be in Silicon Valley anymore to go big.
The full report offers many valuable insights that highlight just how much new ventures have changed in the last 10 years and offers some clues about what comes next. [Source Report]
Bill Haines, Partner