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When Aileen Lee, the former Kleiner Perkins partner and founder of the seed-stage venture capital firm Cowboy Ventures, coined the term “unicorn” in 2013 on this very site, there were just 39 companies that had earned the title.
She called them “the lucky/genius few.” Her definition: U.S. software startups launched since 2003 worth more than $1 billion. When she authored the viral post, just four companies were garnering valuations that high each year, according to her calculations. Five years later, the rate at which startups are becoming unicorns has increased 353.1 percent, according to PitchBook’s latest research.
Today - Unicorns - US - Valuation
Today, there are 145 “active unicorns” in the U.S. alone, worth an aggregate valuation of $555.9 billion.
Why? A couple of reasons. Namely, because companies are staying private longer and longer, allowing the unicorn count to continue to swell with very few companies transitioning out and into another club — the public markets club. Plus, there is so much capital available in the market, $80.1 billion, to be exact, that late-stage companies are opting for “mini-IPOs” sponsored by SoftBank instead of airing their dirty laundry in an S-1 filing.
Signs - Slowdown - Unicorns
There are no signs pointing to a slowdown in new unicorns....
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