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Pre-IPO buzz | Will 2022 be the year of unicorns?

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Moomoo IPO Buzz joined discussion · Jan 27, 2022 11:11
Pre-IPO buzz | Will 2022 be the year of unicorns?
>>Follow Pre-IPO Buzz to get latest unicorn information.
Hello, mooers. Have you ever heard the term "unicorn" in business circles?
"Unicorn" is used in the venture capital industry to describe a privately held startup company with a value of over $1 billion.
The term was first popularised in 2013 by venture capitalist Aileen Lee, choosing the mythical animal to represent the statistical rarity of such successful ventures.
According to CB Insights database, there are more than 900 unicorns around the world as of January 2022. Unicorn startups were minted at an unprecedented pace in 2021, averaging more than 10 each week.
As for decacorn, it is a term for a company valued at more than US $10 Billion, while hectocorn is used for a company valued over US $100 Billion.
Breaking down the world's biggest startups by industry highlights that tech is still king in most investing circles. To be specific, fintech is the most highly represented category, followed by internet software & services, e-commerce & direct-to-consumer, and artificial intelligence.
Source: CB Insights
Source: CB Insights
Many of the most valuable startups are already giants in their fields. The world's most valuable private company is China-based ByteDance, the developer of the content platforms Tik Tok, Douyin, and Toutiao, reaching a $140B valuation following an investment from Tiger Global Management in 2020.
Source: Pexels
Source: Pexels
Rounding out the top 5 most valuable startups are aerospace manufacturer SpaceX (valued at $100.3B), payments processor Stripe ($95B), payments platform Klarna ($45.6B), and collaborative online design tool Canva ($40B).
Unicorn IPOs are on the rise
For unicorns, private valuations don't last forever, and many unicorns eventually go public. Popular former unicorns, including $Palantir (PLTR.US)$, $Unity Software (U.US)$, $Snowflake (SNOW.US)$, $Airbnb (ABNB.US)$, $Roblox (RBLX.US)$, $Affirm Holdings (AFRM.US)$, $Rivian Automotive (RIVN.US)$, etc., finally chose the IPO value journey.
A record number of venture-backed companies went public in 2021. Many of them went public at huge valuations, with 238 companies debuting on the public markets valued above $1 billion in 2021, compared with 61 in 2020.
A “unicorn phenomenon” that's ushered in massive fundraising rounds for startups over the past decade is “finally blowing up” and manifesting itself in a record wave of IPO activity, says Pitchbook venture analyst Cameron Stanfill.
Pre-IPO buzz | Will 2022 be the year of unicorns?
Thanks in part to the trillions of venture capital dollars spent on startups over the past decade, he says the trend of buzzy billion-dollar firms nabbing sky-high public market valuations isn't likely to cool down in 2022.
Upcoming US mega-IPOs include social media platform Reddit, car-sharing platform $Turo Inc (TURO.US)$, data management provider Cohesity.
It was also reported that some famous unicorns like payments processor Stripe, grocery-delivery service Instacart, digital bank Chime, and online chat service Discord are preparing for IPO plans.
Pre-IPO buzz | Will 2022 be the year of unicorns?
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