Recent analysis indicates a significant growth in the number of US startups reaching unicorn status, with a 14-fold increase from 39 in 2013 to 532 in 2023, where 78% are B2B and 93% are privately valued. However, despite this growth, 40% of VC-funded US unicorns are valued below $1 billion in secondary markets. Aileen Lee, co-founder of Cowboy Ventures, suggests that more startups may see their valuations decrease. In 1994, Jeff Bezos sought $50,000 for 1% ownership in Amazon, a decision that could have netted investors over $15 billion today. Meanwhile, startups in South and Central America have experienced a sharp decline in investment, with an 84% drop from record-setting levels in 2021 to $2.9 billion in 2023. This trend points towards a potential drop in the number of active unicorns, which stood at 720 by mid-November 2023, as investors and founders are urged to focus on sustainable growth.
Investing in startups: high risk, potentially high reward. Understand the project, understand the team. Huge potential doesn't always mean successful outcome.
πFounders & investors: by mid-Nov 2023, there were 720 active unicorns, but we're bracing for a drop in 2024. It's a wake-up call: time for founders to chase sustainable growth over hype, and investors to tweak those valuation models. h/t @PitchBook https://t.co/6Qa2xc3JWn
Investing in startups takes vision, patience, and willingness to take a risk. In 1994, Jeff Bezos held 60 meetings to secure Amazon investors. But 38 declined his offer of $50,000 for 1% Ownership β A Decision That Could Have Made Each of Them Over $15 Billion Today:β¦
Pre-IPO investing is one avenue that has gained significant attention among investors looking to get in on the ground floor of a company's growth trajectory. Learn more about understanding #preIPO #investing: https://t.co/SfVc4Vk8W3 #newblogpost #blog #MicroVentures #invest https://t.co/rg9nUQIaXx
Startups in South and Central America pulled in an estimated $2.9B in seed through growth stage investment in 2023, Crunchbase data shows. Thatβs an 84% decline from 2021, when investment hit record-setting levels. https://t.co/CEc3pXLUuc
40% of VC-funded US unicorns valued below $1 billion in secondary markets Aileen Lee, cofounder of seed venture capital firm Cowboy Ventures said more startups are likely to join the club where unicorn valuations will trade lower. https://t.co/gbF5pbFlbU
Analysis: the total number of US startups with a $1B+ valuation grew 14x from 39 in 2013 to 532 in 2023, 78% today are B2B, 93% are privately valued, and more (TechCrunch) https://t.co/mgKBnqn2WG π« Subscribe: https://t.co/OyWeKSRpIM https://t.co/9D0EFHDjxG