When companies cross a valuation of $1 billion, they become unicorn companies—a new and exclusive club. These companies are companies you can’t find on any exchange, as they do not have a stock market listing. These companies are among the most successful and profitable companies in the world. They are also among the rarest, with just 568 companies existing by mid-2019 and expected to be around 200 by 2023. As a startup enthusiast and venture capital investor, you would want to be part of this select club and make money for your venture capital fund – wouldn’t you? In this blog, we’ll talk about what unicorn companies are and how many companies will be worth over $1 billion by 2023.

What is a Unicorn Company?

A unicorn is a privately held company with a valuation of more than $1 billion. It is considered a rare entity in the business world, as these companies have achieved high valuations in the midst of the startup world.

A unicorn is considered an outcome of venture capital funding and the startup revolution, wherein a startup can reach a unicorn-like valuation by going public or by receiving VC funding. The term unicorn was coined by venture capitalist Aileen Lee in 2013. She used it to refer to companies with a valuation of over $10 billion.

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How Many Unicorn Companies Are There in 2023?

• According to hubspot In the year 2022, the unicorn companies will be valued at $3.5 trillion and there are more than 900 companies globally with a valuation of $1 billion or higher, making them unicorn companies.
• As per the cbninsights , in March 2023 there are 1,200 unicorns around the world. However, there is no accurate number for how many unicorn companies the world has by that time as new companies continue to be funded and acquired at an exponential rate.
• The unicorn funding model has proven to be successful for startups as it provides access to venture capital at a high valuation and helps make their business concept more viable and efficient to more financial gains for investors and founders due to greater valuation.
• One way to identify unicorn startup companies is by looking out for three key characteristics of valuation above $1 billion startup can achieve after raising venture capital from venture capitalists and growing its valuation to more than $1 billion- in addition to technology innovation and scalable business model.

Top 40 Unicorn Companies of 2023 In The World

The top 40 unicorn companies of 2023 are estimated to be worth more than $10 billion each, known as decacorns. As of January 2019, South Korea and Great Britain have the highest number of unicorn companies. The first three companies on the list are, Bytedance and SHEIN ranking 1st and 3rd respectively.

The fastest company to unicorn in 2022 was Aptos, which was founded in December 2021 and closed its first funding at a valuation of $1 billion by the end of 2022. The current startup boom is inspiring new perspectives on entrepreneurship and technology innovation and is directly impacting the startup ecosystem worldwide. It is poised for new highs but is also vulnerable due to regulatory hurdles and risk aversion by venture capital investors.

Total Funding Amounts of the Top Companies

• Bytedance, the world’s most valuable private company, has amassed a valuation of $140 billion- On its debut on the unicorn club by valuation and funding amount, ByteDance is worth $140 billion. The company is known for its internet-based services and is primarily known as a creator of artificial intelligence-powered internet services. The startup was founded by former tech executives from companies like Huawei and Xiaomi and has developed services like AI-assisted internet services and e-commerce platforms.
• SpaceX, owned by Elon Musk, has a valuation of $46 billion- In space exploration and space technology startup, SpaceX is worth $46 billion as of July 2018. The startup is known for developing and launching rockets into space. It was founded by Musk in 2002 as a venture capital company and later transformed into an aerospace company.
• Stripe, a financial services and payment software company, has a valuation of $95 billion- In financial tech startup Stripe is worth $63 bn. The startup is known for creating financial services that can be accessed through the Internet and mobile devices.
• Canva is valued at $40 billion As a startup in the graphic design space Canva is known for providing easy-to-use graphic design tools on various platforms such as mobile phones and Computers.

What Makes These Companies Successful?

Unicorn companies have achieved a billion-dollar valuation and These companies typically have a mission that speaks to their target customers, such as “Do what you love”- They also often acquire other businesses to increase their reach, such as Atlassian’s acquisition of Trello for $425 million. They excel in customer-focused messaging, scalable sales processes and sales agility. They have great products, but sales processes are also highly important to their success.

In short, unicorn companies epitomize the startup world’s highest echelon. These companies excel in customer-focused messaging and scalable sales processes and aren’t afraid to invest heavily in technology and research. But they can’t be dismissed as purely financial entities. they also create innovative products and employ causes as part of their business model.

In conclusion, companies revolutionizing the way we access services and products, it is safe to say that companies that stand out from the crowd are here to stay. The companies and entrepreneurs mentioned above have all been startup success stories and can be a source of inspiration for others. Have a read of our blog on ‘2023 Top SaaS Seed Investors‘ for more information. It can be your next reading material.