![]() ![]() What are the biggest unicorns in the world? Unicorns are a highly visible example of the power law in action. ![]() Why are these companies important? In venture capital, a small number of companies deliver most of a fund's returns, a phenomenon known as the power law. At the time, these startups were both rare and special: Lee counted just 39 companies that met her criteria in 2013, a list that included Facebook, LinkedIn, Workday and Twitter. Venture capitalist Aileen Lee, the founder of Cowboy Ventures, coined the term "unicorn" in 2013 to describe billion-dollar US software companies. Globally, there were 1,279 active unicorns as of April 3, 2023. More than 580 new unicorn companies were formed in 2021 alone, according to PitchBook data. Once a rare beast, billion-dollar startups have become commonplace. How many unicorn companies are there in the world? We stop considering the company a unicorn if it is no longer venture-backed because it goes public or is acquired, or if its valuation falls below the $1 billion threshold-for example, because it went out of business or had a down round. The term unicorn usually describes startups that are valued at more than $1 billion. But that definition has its pitfalls-after all, who decides what qualifies as a startup?įor that reason, PitchBook defines a unicorn more narrowly as a venture-backed company that raised a round at post-money valuation of $1 billion or more. ![]()
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