In 2023, the number of unicorn businesses decreased, yet The Crunchbase Unicorn Board saw a surge in activity despite the scarcity of exits. Presently, there are more than 1,500 unicorn companies globally, with a combined valuation exceeding \(5 trillion based on recent funding rounds. This marks a decade since the term "unicorn" was coined for privately held startups valued at \)1 billion or more.
Research from Crunchbase indicates that 2023 witnessed the lowest influx of companies joining the Unicorn Board in over five centuries. Among the 95 new additions in 2023, the AI sector dominated with 20 fresh unicorns, followed by Fintech (14 companies), cleantech, energy (12 each), and semiconductors (nine).
Moreover, statistics from Crunchbase reveal that 24 companies from China and 41 from the United States secured spots on the Unicorn Board in 2023. Additionally, several other nations contributed to the growth, with Germany leading the pack in unicorn startups.
Noteworthy Updates
The Crunchbase registry of current unicorn entities achieved new milestones in 2023, with fewer companies exiting despite a slower pace of new unicorn entries. As of early 2024, the Unicorn Board listed 1,500 international unicorns, excluding those that departed through M&A or IPO transactions. These private unicorn entities have collectively amassed nearly $900 billion from investors.
The term “unicorn” was popularized by investor Aileen Lee of Cowboy Ventures a decade ago this month to describe firms valued at a billion dollars or more. Despite a downturn in venture funding, Lee remains optimistic about the unicorn trend, predicting over 1,000 new entrants in the United States alone in the next decade.
Unicorn Departures
In 2023, ten firms exited the Unicorn Board through IPOs, a significant drop from previous years when the numbers were substantially higher. Conversely, M&A activities surged in 2023, with sixteen unicorn companies being acquired, showing an uptick from 2022 figures.
December Insights
In December 2023, eight new businesses joined The Crunchbase Unicorn Board. This marked a slight decline from the previous year’s monthly average of 10 new unicorns. Notable additions in December included companies in AI, Fintech, security, food and beverage, and healthcare sectors.
For a comprehensive list of the latest unicorn additions in December 2023:
AI
Fintech
- The Saudi National Bank and the buy now, pay later platform Tamara raised a significant \(340 million in Series C funding, propelling Tamara’s valuation to \)1 billion after four years in operation.
- Vestwell, a New York-based company specializing in online employee retirement plans, secured \(125 million in Series D funding led by Lightspeed Venture Partners, reaching a \)1 billion market value.
Food and Beverage
Security and Privacy
- Andalusia Labs, a two-year-old risk management firm for digital assets in crypto and blockchain, raised \(48 million in Series A funding under the guidance of Lightspeed Venture Partners. The company, valued at \)1 billion, also expanded its operations to Abu Dhabi.
Healthcare
- Dallas-based EmployerDirect Healthcare, a provider of self-funded employer medical services, raised an additional \(92 million with Insight Partners. The 13-year-old company achieved a \)1 billion market valuation.
For further insights on unicorn-related queries on Crunchbase, refer to their methodology section for detailed information on how unicorn companies are curated and tracked.
