Global Unicorn Enterprises

Unicorn, known as a mythical creature, has been one of the concepts we frequently encounter in the entrepreneurship world. In fact, the Unicorn enterprise is one that has reached a billion-dollar valuation. Companies such as Apple, Microsoft, and Google, which were among the start-up companies in the early ’90s and were established in Silicon Valley, have become known by everyone today, thanks to investors. In the 2000s, these initiatives have grown rapidly, and today the number of billion-dollar enterprises has increased rapidly.

Source: Hurun Research Institute

The chart above shows the distribution of Unicorn enterprises by country. According to the data of 2020, there are 586 Unicorn enterprises in 29 countries and 145 cities. While companies sell software and services at an average rate of 80%, 60% of them have developed products/services for consumers. The total value of all known Unicorn enterprises in the world is 1.9 Trillion US Dollars and is almost equivalent to Italy’s GDP in proportion. The USA and China dominate 80% of the total Unicorn enterprises, with 233 Unicorns in the USA and 227 Unicorns in China. This rate is followed by the United Kingdom with 24 Unicorns and India with 21 Unicorns.

When we take a look at the industry branches of the Unicorn enterprises in the USA, the number of SaaS (Software as a Service), E-Commerce, Artificial Intelligence, and Fintech service enterprises seem to be high.

Industry Number of Unicorns Cumulative Valuation of $ Billion
1 SaaS 37 65
2 Artificial Intelligence 35 81
3 E-Commerce 23 53
4 FinTech 21 84
5 Sharing Economy 12 56

Source: Hurun Research Institute

When we look at the industry branches of Unicorn enterprises in China, we see a high rate of enterprises for E-Commerce, Artificial Intelligence, FinTech, Logistics and Health Technology services.

Industry Number of Unicorns Cumulative Valuation of $ Billion
1 E-Commerce 39 70
2 Artificial Intelligence 21 39
3 FinTech 18 239
4 Logistics 16 68
5 Health-Care Technology 16 40

Source: Hurun Research Institute

When we look at the number of Unicorn enterprises spread around the world, the distribution is as follows;

Region Number of Unicorns Percentage of Total Value
1 Asia 278 %55
2 North America 236 %37
3 Europe 58 %6
4 South America 10 %1
5 Oceania 2 %0
6 Africa 1 %0

Source: Hurun Research Institute

While 80% of these enterprises operate in the fields of Software services, E-commerce, Payment technologies, Artificial Intelligence and SaaS, 20% of them operate with physical products such as Consumer goods and Electric Cars.

According to the Global UNICORN Index report, the USA’s Los Angeles and San Francisco region and China’s Beijing and Hangzhou region hold the most valuable 10 Unicorns.

Name Valuation (US$bn) Region
1 Ant Group 150 Hangzhou, China
2 ByteDance 80 Beijing, China
3 Didi Chuxing 55 Beijing, China
4 Lufax 38 Shanghai, China
5 SpaceX 36 Los Angeles, USA
6 Stripe 36 San Francisco, USA
7 Airbnb 35 San Francisco, USA
8 Kuaishou 28 Beijing, China
9 Cainiao 27 Hangzhou, China
10 Palantir Technologies 26 Palo Alto, USA

Source: Hurun Research Institute *New to the Top 10

It is seen that a large number of companies operate in areas such as payment technologies, online marketplaces, e-cars, fast delivery in the core business areas of Unicorn startups worldwide.

When we look at the investors, who are the major forces behind Unicorn initiatives, it is possible to say that the American, Chinese and Japanese investors are among the strong countries behind Unicorn enterprises. American investment company Sequoia is among the world’s most successful platform for finding and investing in startups with UNICORN potential. This is followed by Tencent, Softbank, IDG, Hillhouse Capital, Tiger Fund and Goldman Sachs.

Investor Number of Unicorns Country Leading Team
1 Sequoia 109 (+17) USA Donald Valentine, Neil Shen Nanpeng
2 Tencent 52 (+6) China Pony Ma Huateng, Lau Sheng Yee, Xi Dan
3 Softbank 51 (+9) Japan Masayoshi Son, Rajeev Misra
4 IDG 41 (+10) USA Jim Breyer, Cui Guangfu
5 Hillhouse Capital 37 (+21) China Zhang Lei
6 Goldman Sachs 32 (+8) USA David Solomon, John Waldron
7 Alibaba 25 (+3) China Daniel Zhang Yong, Eddie Wu
8 Andreessen Horowitz 24 (+4) USA Marc Andreessen, Ben Horowitz
9 Accel 23 (+5) USA Philippe Botteri, Andrew Braccia

Source: Hurun Research Institute

On average, 33 startups worldwide have the title Unicorn within 3 years, and the average age of Unicorn startups is determined to be 9.

Founded in 2010, Peak Games has just achieved great success just in 10 years and became Turkey’s first attempt Unicorn. In addition to the peak games success, Turkey’s leading E-Commerce Platform Trendyol, in 2018 increased its value to over 1.1 billion USD by taking $ 728 million investment from Alibaba., another important enterprise from Turkey started to make a name for itself by raising its value to over 2 billion USD as a result of continuous efforts over the years,

In addition to all of these, in the logistics industry, which has an important share in the world economy by reaching a size of 8 -12 Trillion dollars, more than 25 enterprises that achieve digitalization and ensures efficient management of all processes in the supply chain with smart technologies have risen in 2020 and become Unicorn. Companies such as Convoy, Delhivery, Blackbuck, KeepTruckin, Flexport, and Rivigo are some of the unicorns in the field of logistics technologies.

Logistics technologies that are on the rise and will become the Unicorn in the near future are companies such as Next Trucking, FourKites, LoadSmart, Sennder, OnTruck, Kobo360.

The most important feature of these companies is to make manual transactions in logistics and supply chain processes manageable online through web and mobile-based applications. In this way, real-time and location-based transactions such as online load reservation, load bidding, operations management can be performed quickly.

Turkey-based Logistics technology enterprise TIRPORT is a candidate to be a Unicorn in the near future with its innovative approach to the Turkish logistics market where 450.000 FTL transactions are made every day.

Thanks to its enhanced intelligence technology, TIRPORT is a digital platform that combines load owners and drivers through web and mobile-based applications, enables real-time and location-based tracking & monitoring of the load, and supports the entire process with PODs (delivery blood), and enables instant access to all reports. platform.

To access Global Unicorn List 2020 and source click here.