To answer the question of where big venture capital funding goes, a new analysis looks at the latest data on unicorns.
The total number of companies valued above $ 1 billion has doubled in the past year alone, and most of its growth is funded by venture capital.
The social models, workflows, and fundamental changes in the industry that the market has seen have led many of the largest venture capital firms to invest in the same unicorn set. Most of them are fintech or internet service companies.
All big venture capital firms are investing in the same unicorn
Best Brokers to find out more about what most venture capital firms are investing in analysis Recently published research From CB Insight. CB Insights provided a list of all the unicorns in the world and collated it with investor and industry data.
The BestBroker report identified the top 10 entities that invested in the maximum number of unicorns. According to the data, only 10 companies own 38% of all 1143 unicorns currently on the market. Accel has led the ownership of an astonishing 67 companies worth over $ 1 billion, with Tiger Global Management and Insight Partners both investing in 61 unicorns.
Andreessen Horowitz, one of the most famous names in the VC world, owns 57 unicorns.
Grouping these unicorns by industry shows an undeniable trend. Most of the VC funding seems to go to software and fintech companies.
Internet software and services, fintech, and e-commerce account for more than half of the total number of unicorns. The following four industries (AI, cybersecurity, health, data management) represent just over a quarter of unicorns.
“Since the beginning of 2021, FinTech Unicorns have grown tremendously by 330%, followed by Internet software and services at 274% and Cybersecurity at 267%. Next to the list is Health, Data Analysis and Logistics. , AI. You can clearly see how the trend industry is strongly influenced by the pandemic and the changes it has brought about, “said Alan Goldberg, an analyst at Best Brokers.
The changes brought about by the pandemic are most pronounced in the growth seen in e-commerce. E-commerce and direct sales companies are strongly represented in the portfolio of all Asian companies on the list, and the industry ranks first among all three Asian companies.
Goldberg said this is not surprising given that e-commerce revenues in Asia are expected to reach $ 2 trillion by 2024.
However, the two major industries that VC companies are investing in are software and fintech. Cryptocurrency companies and legacy fintech companies are grouped together in the CB Insight report, but it’s safe to assume that crypto companies and blockchain companies also make up a notable part of these VC portfolios. ..
As reported by CryptoSlate, a significant number of new unicorns added throughout the year came from the crypto market. These companies include FTX, Ripple, OpenSea, Bitmain, Alchemy, Chainlysis and more.
