This new study compares what these “Unicorn” companies have in common – to give you some guidance for the path you should pursue.
Topics: 1st Time, Co vs Solo Founders, Best School, Time to Unicorn, Faster, Trend, Tally, Valuations, M vs W, top 3 Industries + more . . .
What is a Unicorn company? A tech Unicorn is one of the Tech company Startups that has been valued by investors at more than one billion dollars $B.
How do you build a Unicorn that brings in > a Billion dollars? There are many factors that can contribute to the creation of a Unicorn: Advisors, Mentors, inspired Team, loyal (& often viral) Customers & supportive Investors. Identifying an untapped corner of the market and a keen understanding of what your customer base wants – then delivering it – can contribute to future success at this high level for Startups.
What do the Unicorns have in common? A company that makes cloud accounting software for small business, released a study exploring the commonalities between the Startups that get to this major business milestone. Read on for some of the research’s most
- 1st Time Founders. Sixty (60) percent (6/10) of the founders who reached the Billion-dollar mark are first time founders. Twenty-three (23) percent (1/4) of founders are on their second attempts.
- Co vs Solo Founders. Sixty-seven (65) percent (2/3) of the companies were launched by co-founders. Thirty-five (35) percent (1/3) were started by only one founder.
- Serial Entrepreneurs. The people who have launched companies before, receive higher valuations on their companies than first timers, an average of $6 Billion compared to $4.3B.
- Best School Stanford (200), Harvard (120), MIT (100), & UC Berkeley (85) are the top alma maters of Unicorn founders. Go to Stanford.
- California is home to the most Unicorn companies. New York has the second highest and the third jumps overseas to Beijing, China.
- Time to become a Unicorn. Thirty-five (35) of the companies on the list were four years old when they achieved Unicorn status. Have patience.
- Faster to Unicorn. In 2016, it was found that companies achieved Unicorn status faster than any other previous year.
- Trend of Unicorns. In 2014, 58 companies became Unicorns. In 2015, that shot up to 86, but in 2016, the number dropped to 41.
- Tally: the United States has 144 Unicorns in total. China has 47 & #2 India has 10.
- Valuations. The industries with the top valuations are slightly different. Internet is still at the top. Those companies have a combined value of nearly $319 Billion. But Financial Services is at number 2 with a combined value of more than $132 Billion. Ecommerce is number 3. Those Unicorns have a combined value of nearly $125 Billion.
- Men vs Women. Ninety-four (94) percent of the Unicorn founders are men. Only Six (6) percent are women. Women need be enabled more.
- The top three Industries with the most Unicorns are Internet, Software & eCommerce.
- Bottom-up. One-hundred-fifty (150 = 90%) companies, the majority of the list, are valued between $1 & 2 Billion. Sixteen businesses (15 = 10%) have a valuation of more than $10 Billion.
- In Europe, London is the city with the most Billion-dollar companies. Berlin is #2 and Stockholm #3.
- 10-year Anniversaries of being a Unicorn, was held by 29 companies in 2016. 2007 is the year that yielded the most Billion-dollar companies.
Comments: Which Fact impresses you the most about becoming a Unicorn?
a few Unicorns – valued > $B [1/17]
|MicroSoft||511||SW + Cloud|
|11||Pix – Social|
from Entrepreneur.com 27 Jan 17 significantly enhanced by Peter/CXO Wiz4biz