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More expensive than ever to become unicorn in US: Report

In addition to a stable initial round of financing, the median unicorn financing round has held relatively steady for years now, shifting between $130 million and $175 million since 2015.

world Updated: Aug 14, 2019 16:51 IST
Indo Asian News Service
Indo Asian News Service
San Francisco
Currently there are 187 active unicorns in the US.
Currently there are 187 active unicorns in the US.(Image for representational purposes only)
         

It is now more expensive to become a unicorn in the US than ever before, with the median sum raised prior to the status-conferring round soaring to $126.1 million in the first half of this year, says a report.

Unicorns are start-ups valued at over $1 billion.

The sums raised by companies in the US before becoming a unicorn are approaching all-time highs, said the 2019 PitchBook “Unicorn Report”.

In addition to a stable initial round of financing, the median unicorn financing round has held relatively steady for years now, shifting between $130 million and $175 million since 2015.

“We anticipate more unicorns in emerging regions, such as the Asia-Pacific region, but the center of gravity remains mainly in northern California. So, I expect the largest production of unicorns will be located around that center of gravity. Now, however, the method will be different,” said Saeed Amidi, CEO and Founder, Plug & Play Tech Center, an early stage investor.

“The next giant tech companies will be a pure disruption of traditional businesses through the application of technology rather than being primarily driven by a new type of technology or market,” Amidi added.

At mid-year, there were 187 active unicorns in the US, the research found.

Together they boast an aggregate private valuation of just over $600 billion, said the report.

(The story has been published from a wire feed without any modifications to the text)

First Published: Aug 14, 2019 16:51 IST

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