In the rapidly evolving digital era, the term “startup unicorn” is becoming increasingly common. But what exactly is a startup unicorn, and what are some examples? This article will explore the basic definition of a startup unicorn, explain why they are so special, and provide some examples of well-known startup unicorns.
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What Is a Startup Unicorn?
A unicorn startup is a term used to describe a startup company with a valuation or market value exceeding $1 billion US dollars. The term was first introduced in 2013 by former TechCrunch journalist Aileen Lee to describe at least 39 startup companies worldwide that had achieved this status.
Since then, the number of unicorn companies has continued to grow, now encompassing more than 800 companies globally. One significant factor contributing to a startup achieving a high valuation is its involvement in the rapidly growing technology sector.
Many unicorn companies operate in sectors such as fintech, e-commerce, transportation, and information technology. They often offer innovative solutions that leverage technology to provide more efficient and practical services or products for consumers.
However, reaching unicorn status is not an easy feat. Startups must sustain rapid and stable growth within a relatively short timeframe while facing fierce competition from other companies in the same industry.
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Additionally, they must have a solid business strategy, a well-trained management team, and strong financial support from investors capable of helping them grow and expand.
The success of unicorn companies benefits not only the owners and investors but also the economy and the surrounding community. These companies can create new job opportunities, advance technology and innovation, and drive economic growth.
However, at the same time, they also face significant risks and challenges, such as high operational expenses, stringent regulations, and the pressure to achieve consistent profits in a relatively short period.
Therefore, unicorn companies must remain innovative and adaptive to continue growing amid increasing competition. In the startup hierarchy, unicorns are positioned between centaurs (valuation up to USD 100 million) and decacorns (valuation up to USD 10 billion).
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Examples of Global Startup Unicorns
Every year, thousands of companies are founded worldwide. Some fail in the first or second year, while others soar and continually increase their valuations to reach unicorn status. Here are examples of global startup unicorns:
- Bytedance
- Founded in 2012 by Chinese entrepreneurs Zhang Yiming, Liang Rubo, and a team, Bytedance is the company behind the popular TikTok app. Bytedance also developed a TikTok-like app called Douyin for the Chinese market. By offering entertaining content, dance, lipsync, and humorous videos, Bytedance expanded its reach. As of January 2023, Bytedance’s valuation has reached USD 220 billion.
- SpaceX
- Founded by Elon Musk in 2002, SpaceX is known for its obsession with the probability of humans living in space. With a mission to take humans to Mars and travel freely in space, SpaceX has become one of the world’s most fascinating and innovative companies. As of 2023, SpaceX’s valuation has reached USD 137 billion.
- Shein
- Shein is a unicorn startup in the fashion retail sector. Founded in 2008 by Chris Xu, initially as ZZKKO and later changed to SheInside before becoming Shein in 2015, the company quickly gained fame in the fashion industry. As of April 2022, Shein achieved a valuation of USD 100 billion, but by January 2023, it decreased to USD 64 billion.
- Stripe
- Founded in 2009 by the Collison brothers, Patrick and John, Stripe is a fintech startup that created a seamless user experience on websites and mobile apps. The company established partnerships with Ford, Spotify, and Twitter. In 2022, its valuation was USD 95 billion, but it decreased to USD 50 billion in March 2023.
- Checkout.com
- Founded in 2012 by Guillaume Pousaz in London, Checkout.com provides various payment processing services for businesses of all sizes, from small to multinational corporations. Some of its clients include Netflix and Pizza Hut. As of the end of 2022, its valuation reached USD 40 billion.
Read Also: What Is a Startup Hectocorn? Definition and Examples
Examples of Indonesian Startup Unicorns
As of 2023, seven startups have successfully reached unicorn status in Indonesia. Here are some examples of Indonesian startup unicorns:
- Traveloka
- Traveloka, a startup involved in travel and hotel bookings, became a unicorn in 2017. Its current valuation is USD 3 billion or approximately IDR 42.6 trillion.
- Akulaku
- Akulaku achieved unicorn status in February 2022 with a valuation of USD 2 billion or IDR 30 trillion. Akulaku operates as an online loan application with licenses for both multifinance and P2P lending.
- Kopi Kenangan
- Kopi Kenangan, a rapidly growing food and beverage (F&B) startup in Indonesia, reached a unicorn valuation of USD 1 billion or IDR 15 trillion.
- Ajaib
- Ajaib is a fintech unicorn established in 2018 under Ajaib Group and PT Takjub Teknologi Indonesia. The company has a valuation of USD 1 billion or IDR 15 trillion.
Read Also: Understanding Startup Decacorn and Examples of Decacorn Companies
In conclusion, not all startups can reach unicorn status. Even those that have achieved unicorn status may see a decrease in their valuation if they fail to develop profitability or secure additional funding.
