Despite the challenges brought by the COVID-19 pandemic, the influx of venture capital into dynamic startups did not wane in 2021. Today, over 500 startups have achieved the coveted “unicorn” status, which denotes a valuation exceeding $1 billion, and nearly 30 have reached “decacorn” status with valuations soaring past $10 billion, reports from CBInsights noted as of February.
This year has seen a surge of investment into a select number of rapidly expanding companies across diverse sectors. With analysts predicting enduring low-interest rates, venture capital funding is expected to remain robust, maintaining high liquidity and thus, driving more capital into these burgeoning enterprises.
Stripe Co-founders; Patrick and John Collison.
Included in this lineup of unicorns are Chinese juggernauts like the Sequoia-backed ByteDance, valued at $180 billion, and the Softbank-supported Didi Chuxing, holding a $62 billion valuation.
In contrast, the landscape in the United States is bustling with unicorns flourishing in recent times. Let us delve into some of America’s top unicorn startups by valuation.
SpaceX ($74 Billion)
Elon Musk’s SpaceX now carries the title of the most valuable American unicorn at a staggering $74 billion, following its recent fundraise. The company’s worth leaped significantly from its $46 billion valuation in August. SpaceX, led by Musk—who has reclaimed his title as the world’s wealthiest individual—experienced intense demand in its latest investment round, with the enchanting prospect of space tourism on the horizon expanding its market potential.
Stripe ($36 billion)
Runners-up to SpaceX, Stripe’s valuation hit $36 billion following an expanded Series G round in April. But Stripe may soon eclipse SpaceX’s valuation as it is rumored to be raising another series that could shoot its value to a staggering $100 billion, potentially positioning it as the United States’ most prized startup.
While Stripe has yet to plan for a public offering, speculations suggest a possible IPO in 2021, with the payments industry experiencing a significant boom.
Irish brothers Patrick and John Collison, both now in their 30s, launched Stripe in 2010. The company’s stunning valuation is a testament to the explosive growth of eCommerce, which has shot up the value of Stripe’s peers such as Adyen, Square, and Checkout.com. With other tech firms witnessing soaring valuations upon going public, Stripe’s current value has surpassed the pre-IPO valuations of giants such as Facebook and Uber.
UiPath ($35 billion)
Valued at $35 billion, UiPath comes in third place, thanks to a substantial $750 million Series F funding round. The robotic process automation leader is gearing up for an IPO, potentially opting for a direct listing instead.
Roblox ($29.5 billion)
The gaming platform Roblox, after accruing $855.8 million in funding, claims a $29.5 billion valuation. Roblox made headlines with its direct listing, marking it as the first of 2021 after revising its revenue figures for the first three quarters of 2020.
Databricks ($28 billion)
Databricks, having secured $1 billion in its Series G funding this February, now stands at a $28 billion valuation. Backed by Andreessen Horowitz, Databricks excels in big data analytics and has recently teamed up with Google Cloud, with a public listing on its agenda for the current year.
Similar to Stripe, Coinbase, a cryptocurrency enterprise, is being valued north of $100 billion in private markets, hinting at a valuation surpassing that of SpaceX.
However, market analysts advise caution amidst these soaring valuations, recognizing the threat of inflation in the US and noting the revival of traditional economic sectors as the vaccine rollout progresses and federal stimulus fuels economic recovery.
Nevertheless, Stripe has thrived during the pandemic, adding 200,000 new European clients. John Collison stated that Stripe’s systems processed nearly 5,000 requests per second in 2020, which by transaction volumes, positions Stripe as larger than the entire eCommerce market at the time Stripe commenced its operations.
