The rate of companies attaining unicorn status in recent months has accelerated, backed by factors like increased funding. Despite the economic impact resulting from the coronavirus pandemic, the number of unicorns has hit historical levels.
Data acquired by Finbold indicates that the number of new global unicorns has spiked 491% between Q2 2020 and Q2 2021 from 23 to a staggering 136. During the first three months of this year, the figure stood at 113, representing a growth of 140.4% from 2020 Q4’s 47 unicorns. During the first quarter of 2020, the number of unicorns dropped to 21 from the previous quarter’s figure of 31.
Between Q2 2016 and the second quarter of this year, the number of companies to attain a billion-dollar valuation grew by 871%. During the period, the least number of unicorns was recorded in Q4 2016 at 10.
Companies utilize the pandemic to hit unicorn status
The companies attained unicorn status amid the coronavirus pandemic that also offered a perfect opportunity to increase in valuation. According to the research report:
“Most of the unicorns that emerged amid the pandemic capitalized on the newfound urgency of online integrations. In general, the pandemic has accelerated the adoption of online technologies. However, the companies had already recognized the need to shift online before the health crisis ushered in clients and investors.”
With the valuation, the companies are now focusing on sustainability to make profits. Furthermore, with the most promising startups recording an increase in venture capital funding, most companies should continue to attain unicorn status in the future.