The unicorn revolution is hitting its stride as historic investment levels not seen since the dot-com bubble fuel this expanding lexicon of start-ups.
This unprecedented venture capital investment is giving way to decacorns (companies with a valuation of over $10 billion), and hectocorns (companies with a valuation over $100 billion) and so on, creating a little bit of a “the sky’s the limit” attitude because everyone knows unicorns love to fly.
All joking aside, unicorn companies in all their variations have become an increasingly important and vital piece of the venture capital investment strategy.
New data from the Prime Unicorn Index, an equally-weighted price return index, released its 2019 Q1 Reconstitution Report. The report highlights the return of unicorn breeding at a breakneck pace that could beat previous years’ production.
As for 2019 the Prime Unicorn Index has already seen increases in pricing and valuation. Databricks, Desktop Metal, Lime, WeWork, and Health Catalyst have raised money in Q1 2019 and solidified their position as Unicorn companies.
So, exactly which industries are producing the most valuable unicorns?
As of February 21, 2019, Lagniappe Labs reported that the 116 companies listed on the Prime Unicorn Index had a total valuation of over $377 billion. The top three industries producing unicorns and near unicorns are Software/IT Services (50.86%), Consumer Products and Services (13.79%) and Financial Services (11.21%).
Software/IT Services is the largest category with a total valuation of $137 billion from a total of 59 companies. The second in line is Consumer Products and Services comprised of 16 companies with a total valuation of over $107 billion. And, the third largest industry is Financial Services with a total valuation of $23 billion consisting of 13 companies.
These 88 companies represent over $268 billion in valuations, a stunning amount by any standard. The remainder of the $109 billion is spread out over 8 additional industries.
The top ten most valuable companies listed on the Index are spread out among the top ten of the 11 different industry categories:
|1||WeWork Companies, Inc.||Business Products and Services||$49,040,766,952|
|2||Uber Technologies, Inc.||Software||$44,271,240,905|
|3||JUUL Labs, Inc.||Consumer Products and Services||$40,415,202,181|
|4||AirBnB, Inc.||Consumer Products and Services||$29,252,091,441|
|5||Space Exploration Technologies Corporation||Industrial/Energy||$26,115,105,705|
|6||Lyft, Inc.||Consumer Products and Services||$13,177,809,253|
|8||Coinbase Global, Inc.||Financial Services||$ 7,238,375,243|
|9||Magic Leap, Inc.||Software||$ 4,984,103,961|
|10||Urban Compass, Inc.||Software||$ 4,621,869,152|
*Valuation based on available filings as of 2/21/2019
The Prime Unicorn Index provides a unique opportunity for institutional investors to access a fair representation of the private markets where they can make an investment on the future of their portfolios, whether they want to go long or short.
Additionally, the Index provides up-to-date empirical data used to track today’s private capital markets and offer ways to offset exposure in regard to direct private market investments by taking advantage of the trading opportunities presented by Prime Unicorn Index.
Please email us here for information on trading opportunities with Index.
Bloomberg Ticker: PUNICORN
Reuters Ticker: .PUNICORN