Why China Leads the World Market for Unicorn Startups

What Are Newnicorns?

Unicorn businesses are a startup with a valuation of $1 billion, and with more companies joining the list each year Small Business Prices have coined the term ‘Newnicorn’ which are new entries on the 2018 list.

Newnicorns Around the World

This year, the Hall of Fame saw 24 new entries to the growing unicorn list with a combined value of $48.3 billion.

Here are the rankings for the three best performing countries that featured on the list:

  1. China – World market leaders, China, takes first place for number of unicorn startups in 2018. With one of the largest growing economies in the world, China has been recognised for its growing successes in the startup industry. The country had ten entries for the 2018 list, valuating at $30.8 billion combined. It was also home to the highest valued unicorn startup, Bitmain Technologies which is worth $12 billion.
  2. United States – Being the largest economy by nominal GDP,  the United States comes in second for the number of entries on the list. The western superpower had nine entries on the list this year with a combined valuation of $10.8 billion. Despite a $20 billion difference between China, the United States is home to a number of established unicorn startups such as Airbnb, Lyft, Pinterest, and Uber.
  3. Brazil – One of the BRIC nations,  Brazil is the largest country in South America and has one of the fastest growing economies in the world. Like Australia, Israel, Portugal, and the United Kingdom, Brazil had only one entry on this year’s list, however, the $2 billion valuation of FinTech company Nubank placed the country the 3rd.

The Top Newnicorn Industries

  1. Entertainment/E-commerce/Media – With a combined valuation of $16.4 billion, this industry is one to watch over the next year. Services such as EasyHome ($5.7 billion) and Gett ($1.4 billion) were some of the best entries featured.
  2. FinTech – A new industry that looks at improving financial activity, growth in investment services, cryptocurrency and apps are an example of how FinTech is changing the world. The startups valuations amount to a total of $16.3 billion, narrowly placing the industry in second place.
  3. Tech – Use of technology to refine or improve products and services, tech startups are probably one of the most recognisable industries overall. Despite their popularity, the industry came third for new entries this year with a total value of $3.4 billion, considerably lower than the previous two industries.

Ian Wright from Small Business Prices stated:

“Across all sectors, there is vast competition in the startup industry with companies and investors having to take big risks to be successful. Combining historical data with the 2018 startup landscape gives a good insight into the world of Unicorn business.”

Startups: Hall of Fame

To see which Newnicorns made the list or how each industry compares in more detail, you can take a look at Small Business Prices tool here.

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