UNICORN TRENDS The data behind the world’s most valuable private companies
#CBI_Unicorns WEBINAR RECORDING WILL BE DISTRIBUTED IMMEDIATELY AFTER
The presentation will also be sent to you. Feel free to share with colleagues. The resolution of some slides may be suboptimal due to the webinar software. Those slides will look fine in the presentation that we send you.
http://support.citrixonline.com/en_US/Webinar
#CBI_Unicorns www.cbinsights.com 2 JOIN THE CONVERSATION ON TWITTER
@cbinsights @AltmanW #CBI_Unicorns
#CBI_Unicorns www.cbinsights.com 3 The technology market intelligence platform.
CB Insights software lets you predict, discuss and communicate emerging technology trends using data in ways that are beyond human cognition.
#CBI_Unicorns www.cbinsights.com 4 A FEW OF OUR HAPPY CUSTOMERS The most publicly reference-able customers of anyone in the industry
“With CB Insights we can quickly and reliably aggregate data across the investing landscape, from sector trends to financing activity. The intuitive user interface and robust set of features have made it a go-to resource for our team, and the customer support is second to none...” Kate Barrett Director, New Enterprise Associates
#CBI_Unicorns www.cbinsights.com 5 ABOUT THE PRESENTER
William Altman Tech Industry Analyst, CB Insights
Focuses on cybersecurity and $1B+ companies; additional topics include marketing tech, travel tech, edtech, and macro venture capital trends
Published research and data analysis has been featured in The New York Times, CNN, Financial Times, and The Wall Street Journal, @AltmanW among other major media outlets
Previously worked as an Associate in the Wamda Research Lab in Amman, Jordan and Beirut, Lebanon [email protected] Graduate of Denison University 12’ (B.S.), and MIIS 14’ (M.A.)
#CBI_Unicorns www.cbinsights.com 6 UNICORNS: PRIVATE COMPANIES WORTH $1B+
“Yes, it’s arbitrary because it’s a big round number. It does make a difference psychologically. One billion is better than $800 million because it’s the psychological threshold for potential customers, employees, and the press.”
Stewart Butterfield CEO, Slack Technologies
Source: Fortune #CBI_Unicorns www.cbinsights.com 7 TABLE OF CONTENTS 9 The current global unicorn club 19 Most active investors 24 Stalking the smart money 27 Historical unicorn trends 39 Unicorn trends to watch
#CBI_Unicorns www.cbinsights.com 8 The current global unicorn club MARKET MAP, GEOGRAPHY, VALUATIONS, FUNDING, MOST ACTIVE VCs
#CBI_Unicorns www.cbinsights.com 9 GLOBAL UNICORN CLUB: 185 PRIVATE COMPANIES VALUED 13 MOST POPULATED AT $1B+ MARKET MAP as of 2/1/2017 MARKET SEGMENTS
Largest share of unicorns (18%) are in E-commerce/ Marketplace.
Followed by Internet Software & Services (14%), and Fintech (12%)
#CBI_Unicorns www.cbinsights.com 10 GLOBAL UNICORN CLUB: PRIVATE COMPANIES VALUED AT 24 COUNTRIES WITH 1+ $1B+ GEOGRAPHIC MAP as of 2/1/2017 UNICORN COMPANY
The United States is home to over half (52%) of the unicorn club
23% of the world’s unicorns are based in China
Followed by: India, the UK, Germany, and South Korea, respectively
No other country has 3+ unicorns
#CBI_Unicorns www.cbinsights.com 11 THE UNITED STATES OF UNICORNS: PRIVATE COMPANIES 11 US STATES WITH 1+ VALUED AT $1B+ as of 2/1/2017 UNICORN COMPANY
After California and New York, Massachusetts, Illinois, and Utah rank fourth, and Florida comes in fifth.
The top five most well- funded are: Uber ($12.5B), Airbnb ($3.9B), Infor ($2.6B), Snap ($2.6B), and Palantir ($1.9B). Infor is the only unicorn out of the top 5 based outside California; it is located in New York.
#CBI_Unicorns www.cbinsights.com 12 TIME TO UNICORN VALUATION SOME COMPANIES Select US unicorns, first equity financing to $1B+ valuation REACH $1B+ FAST
Magic Leap and Snap: < 2 years
Stripe and Airbnb: > 3 years
SpaceX and Tanium: > 6 years
DocuSign and Intarcia: > 9 years
#CBI_Unicorns www.cbinsights.com 13 THE INCREASINGLY CROWDED UNICORN CLUB: PRIVATE LOTS OF $1B+ COMPANIES VALUED AT $1B+ as of 2/1/2017 COMPANIES EMERGING IN RECENT YEARS
Largest share (15%) of the current club achieved $1B+ valuation in Q3’15
3 unicorns added in Q1’17: Zhihu, Zoom Communications, and URWork
#CBI_Unicorns www.cbinsights.com 14 Collectively valued at $663 BILLION with combined total funding of $126 BILLION
#CBI_Unicorns www.cbinsights.com 15 THE POWER-LAW OF UNICORN VALUATIONS ($M) as of 2/1/2017 8% OF UNICORNS HAVE 51% OF THE VALUE Top 15 unicorns: $338B, $80,000 51% of collective value
$70,000 Top 15 unicorns: (decacorns worth $10B+) $60,000 are worth more than the $50,000 next 170 combined
$40,000 Top 5 unicorns account
$30,000 Next 170 unicorns: $325B, for 30% of the value 49% of collective value
$20,000
$10,000
$0
Hike
OVH
Okta
Uber Infor
Grab
Wish
Zoox
Dada
TuJia
Guazi
Avant
Domo
BeiBei
Houzz
Apttus
Illumio
Panshi
InMobi
Spotify
Jiuxian
Mozido
Tanium
Sprinklr
SpaceX
Mercari
Decolar
Mogujie
Shazam
FanDuel
Infinidat
WeWork
CureVac
Fanatics
Kabbage
Qualtrics
Coupang
MuleSoft
LIfeMiles
Snapdeal
23andMe
GreenSky
TangoMe
Homelink Compass
Xuanyixia
Hootsuite
BlaBlaCar
MongoDB
Carbon3D
Eventbrite
Mu Sigma Mu ZhangYue
Souq.com
CJ Games CJ
MindMaze
Vox Media Vox
DraftKings
Pluralsight
HelloFresh
ironSource
Automattic
Thumbtack
Magic Leap Magic
Apus Group Apus
Yello Mobile Yello
Didi Chuxing Didi
Auto1 Group Auto1
51Xinyongka
Warby Parker Warby
Bloom Energy Bloom
Garena Online Garena
Kik Interactive Kik
Funding Circle Funding
Social Finance Social
SurveyMonkey
Zomato Media Zomato
DJI Innovations DJI
Age of of Learning Age
Human Longevity Human
Meizu Technology Meizu
Quanergy Systems Quanergy
STX Entertainment STX
China Internet Plus Internet China
Royole Corporation Royole
Weiying Technology Weiying
China Rapid Finance Rapid China
Africa Internet Group Internet Africa
Uptake Technologies Uptake
Global Fashion Group Fashion Global
Palantir Technologies Palantir
Guahao Technology Co. Technology Guahao One97 Communications One97
#CBI_Unicorns www.cbinsights.com 16 THE POWER-LAW OF UNICORN FUNDING ($M) as of 2/1/2017 6% OF UNICORNS HAVE
Top 11 unicorns: $47B, 37% OF THE FUNDING 37% of combined funding
$13,050
$12,050 Top 11 unicorns:
$11,050 (all with $2B+ in funding) $10,050 account for nearly 1/3 of $9,050 unicorn funding $8,050 $7,050 Top 5 most well-funded $6,050 Next 170 unicorns: $72B, account for 25% of the $5,050 49% of collective funding funding $4,050
$3,050
$2,050
$1,050
$50
Lyft
Hike
OVH
Okta
Uber Infor
Guazi
Ten-X
Stripe
Gusto
Liepin
Domo
Adyen
Klarna
Lakala
Apttus
AirBnB
Panshi
Xiaomi
Spotify
Docker
Jiuxian
VANCL
Go-JEK
Flipkart
Lu.com
Tanium
SpaceX
ZocDoc
OfferUp
Mogujie
Shazam
Lookout
Infinidat
Anaplan
CureVac
Moderna
Aiwujiwu
Rong360
Coupang Cloudera
iCarbonX
LIfeMiles
Nextdoor
Snapdeal
GreenSky
Compass
BlaBlaCar
Carbon3D
Mu Sigma Mu ZhangYue
AppNexus
CJ Games CJ
GlassDoor
MindMaze
MarkLogic
HelloFresh CloudFlare
Vice Media Vice
SMS Assist SMS
Magic Leap Magic
iTutorGroup
Yello Mobile Yello
Auto1 Group Auto1
Huochebang
51Xinyongka
Warby Parker Warby TransferWise
Kik Interactive Kik
Funding Circle Funding
Social Finance Social
Zomato Media Zomato
Flatiron Health Flatiron
DJI Innovations DJI
Age of of Learning Age
Mofang Gongyu Mofang
Human Longevity Human
Careem Networks Careem
Quanergy Systems Quanergy
STX Entertainment STX
Slack Technologies Slack
Royole Corporation Royole
Zhong An Insurance An Zhong
Prosper Marketplace Prosper
Uptake Technologies Uptake
Intarcia Therapeutics Intarcia
Global Fashion Group Fashion Global
Proteus Digital Health Digital Proteus
Zoom Communications Zoom
Oscar Health Insurance Co. Insurance Health Oscar Oxford Nanopore Technologies Nanopore Oxford
#CBI_Unicorns www.cbinsights.com 17 TOP 5 MOST HIGHLY-VALUED UNICORN COMPANIES UBER ON TOP as of 2/1/2017
Uber (USA) •Select Investors: Lowercase Capital, Benchmark Capital, Google Ventures $68B – 8/23/2013 No unicorns outside the United States and China Xiaomi (China) •Select Investors: Digital Sky Technologies, QiMing Venture Partners, Qualcomm Ventures in the top five most $46B – 12/21/2011 highly-valued
Didi Chuxing (China) •Select Investors: Matrix Partners, Tiger Global Management, Softbank Corp. Last two years have not $33.8B -- 12/31/2014 seen a top five most highly-valued unicorn Airbnb (USA) •Select Investors: Morningside Group, GGV Capital, Banyan Capital $30B – 7/26/2011 3/5 emerged in 2011
Palantir Technologies (USA) •Select Investors: RRE Ventures, Founders Fund, In-Q-Tel $20B – 5/5/2011
#CBI_Unicorns www.cbinsights.com 18 MOST WELL-FUNDED PRIVATE COMPANIES VALUED AT $1B+ UBER ON TOP AGAIN as of 2/1/2017 Rank Company Disclosed Valuation Select Investors Funding Uber, Didi, Airbnb, and 1 Uber $12.5B $68B Lowercase Capital, Benchmark Capital, Google Ventures Xiaomi among the most 2 Didi Chuxing $8.6B $33.8B Matrix Partners, Tiger Global Mgmt., Softbank Corp. highly valued and most 3 Airbnb $3.9B $30B Morningside Group, GGV Capital, Banyan Capital well-funded unicorns China Internet $3.3B $18B Broadline Capital, UBS 4 Plus 5 Flipkart $3.2B $16B Accel Partners, Digital Sky Technologies, Iconiq Capital 6 Global Switch $2.9B $6B Essence Financial, Ping An Insurance 7 Infor $2.63B $10B Blackstone Group, Koch Industries 8 Snap $2.61 $18B capitalG, Benchmark Capital, Lightspeed Venture Partners 9 Xiaomi $2.4B $46B Digital Sky Technologies, QiMing Venture Partners, Qualcomm 10 Ele.me $2.3B $4.5B Sequoia Capital China, GSR Ventures, Horizons Ventures
#CBI_Unicorns www.cbinsights.com 19 2,800 investors with a stake in the unicorn club
#CBI_Unicorns www.cbinsights.com 20 SHARE OF INVESTOR TYPES WITH STAKE IN THE GLOBAL VENTURE CAPITALISTS UNICORN CLUB as of 2/1/2017 ARE MOST ACTIVE
40% of unicorn investors are VCs
Followed by: corporations and their venture capital arms (16%), angel investors (8%), and asset/ investment managers (6%)
No other group accounts for more than 5%
#CBI_Unicorns www.cbinsights.com 21 UNICORN HUNTERS: INVESTORS RANKED BY # OF DIVERSITY OF PORTFOLIO COMPANIES IN THE GLOBAL UNICORN CLUB INVESTOR TYPES as of 2/1/2017
SV Angel, Sequoia Capital, and Tiger Global tie for 1st
Fidelity, DST Global, and A16Z tie for 4th
Wellington and KPCB tie for 7th
Airbnb is the only unicorn in all top 8 unicorn hunters’ portfolios
#CBI_Unicorns www.cbinsights.com 22 EFFICIENCY OF TOP INVESTORS IN THE GLOBAL UNICORN CLUB SV ANGEL ON TOP as of 2/1/2017
Rank Investor # of unicorns in Early-stage unicorn portfolio deals Over half of SV Angel’s 1 SV Angel 23 16 unicorns were backed at 2 Sequoia Capital 22 10 an early stage 3 Tiger Global Management 22 2
4 Fidelity Investments 20 0 Nearly half of Sequoia Capital’s unicorns 5 DST Global 20 0 backed at an early stage 6 Andreessen Horowitz 20 7
7 Wellington Management 19 1
8 Kleiner Perkins Caufield Byers 19 4
9 Goldman Sachs 19 1
10 Tencent Holdings 17 2
#CBI_Unicorns www.cbinsights.com 23 UNICORN HUNTERS: INVESTORS RANKED BY # OF EARLY- SV ANGEL ON TOP STAGE DEALS (SEED/SERIES A) IN THE GLOBAL UNICORN CLUB WITH 16 EARLY-STAGE as of 2/1/2017 DEALS
Sequoia Capital in 2nd
A16z, Khosla Ventures, and YC tie for 3rd
Accel Partners and Benchmark tie for 6th
General Catalyst, First Round Capital, and Qiming tie for 8th
#CBI_Unicorns www.cbinsights.com 24 STALKING THE SMART MONEY MOST ACTIVE INVESTORS & CO- INVESTMENTS
#CBI_Unicorns www.cbinsights.com 25 MOST ACTIVE SMART MONEY INVESTORS IN THE GLOBAL UNICORN CLUB SEQUOIA CAPITAL ON as of 2/1/2017 TOP Rank Investor Select Investments
1 Sequoia Capital Carbon3D, Zoom, Snap, Stripe Sequoia and a16z are the 2 Andreessen Horowitz (a16z) Magic Leap, Pinterest, Illumio, Tanium only smart money VCs with 20+ unicorns 3 Kleiner Perkins Caufield & Byers Gusto, Instacart, Uber, Spotify 4 Accel Partners DJI, Illumio, Qualtrics, Funding Circle Of it’s unicorns, Sequoia 5 New Enterprise Associates Uptake, Snap, Houzz, Mulesoft has participated in 5 Founders Fund Oscar, Compass, Domo, Wish follow-on rounds to 7 Khosla Ventures Instacart, Stripe, Okta, Lookout Stripe the most 8 General Catalyst Partners Datto, Oscar, Illumio, Gusto A16Z has the most 9 Benchmark Capital Snap, WeWork, Nextdoor, Domo cybersecurity unicorns 9 Greylock Partners Airbnb, Lookout, Domo, Docker including: Okta, Illumio, 10 Index Ventures Adyen, TransferWise, BlaBlaCar, FarFetch Tanium, and Lookout
#CBI_Unicorns www.cbinsights.com 26 THE TOP 3 MOST ACTIVE SMART MONEY INVESTORS (2012 -2016)
All three firms have backed: Instacart, Airbnb, and Jawbone
2012 – 2016
For our full list of 24 smart money investors, please see this post. #CBI_Unicorns www.cbinsights.com 27 Ra Investor Select Investments 155 nk 1 Fidelity Investments Airbnb, Snap, Uber, SpaceX 133 2 Wellington Management Airbnb, Uber, SoFi, Magic Leap 3 Goldman Sachs Oscar, Compass, Uber, Xiaomi 98 4 Tiger Global Management GrabTaxi, Hike, Souq.com, Avant 5 T. Rowe Price Magic Leap, Snap, OfferUp, WeWork Auto1 Group,55 Souq.com, Flatiron Health, Funding Baillie Gifford & Co. 6 Circle 48 26 15Historical trends 41 How do unicorns fare in the private markets over time? $8,851 $3,933 $19,714 $38,115 $33,874 36 33 30 31 30 2012 201327 2014 2015 2016 26 25 26 Disclosed Funding ($M) 20 17 16 6 10 16 13 14 6 5 5 11 3 4 6 2 11 10 9
$3,075 9
4 8 8
$1,060 $1,003
$1,020
$850
$757 $783
6 $735 $1,676
4 5 $379
$8,235 $7,312 $4,479 $4,497 $7,988 $7,013 $6,600 $8,799
$10,170 $14,272 $11,527 5 $281
2 $2,751
$1,103
$913
$895 $856 $716
2 $774
$302
$357
$198
$158
$5,168 $6,043 $5,383 $8,068 $9,338 $4,726 $2,226 $75 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 Disclosed Funding ($M) Deals Disclosed… #CBI_Unicorns www.cbinsights.com 28 ANNUAL UNICORN FINANCING HISTORY FUNDING ACTIVITY 2012 – 2016 PEAKED IN 2015
155 9 unicorns obtained $1B+ rounds in 2015: 133 Didi Chuxing, Uber, and SpaceX, among others 98 7 unicorns obtained $1B+ rounds in 2016: Didi Chuxing, Uber, and Snap, among others 26 15 $8,851 $3,933 $19,714 $38,115 $33,874
2012 2013 2014 2015 2016
Disclosed Funding ($M)
#CBI_Unicorns www.cbinsights.com 29 QUARTERLY UNICORN FINANCING HISTORY Q3’15 MOST $/DEALS 2012 – 2017 YTD (1/30/2017) $1B deals in Q3’15: 55
48 - Didi Chuxing ($2B Series F)
41 - Uber ($1B Series F) 36 33 30 31 30 - SoFi ($1B Series E) 26 25
20 6 unicorns funded in 17 6 10 6 5 5 2017: Zoom, Zhihu, 3 4 6
2 URWork, $1,003
$1,060 Insidesales.com,
$1,020
$850
$757
$783
$735
$379
$4,479 $4,497 $7,988 $8,235 $7,312 $7,013 $6,600 $8,799
$11,527 $10,170 $14,272 $281 $2,751 Homelink, and Funding 2012 2013 2014 2015 2016 2017 Circle Disclosed Funding ($M) Deals *This analysis excludes Uptake Technologies’ $40M Series C round (2/1/2017)
#CBI_Unicorns www.cbinsights.com 30 FASTEST $1B+ VALUATION FINANCINGS FOR US VC BACKED COMPANIES UPTAKE FASTEST TO 2009 – 2017 YTD (2/1/2017) $1B+
Uptake 236
Magic Leap 258 Magic Leap, only other
Zoox 372 startup to reach $1B+ in
Jet.com 463 under one year
JetSmarter 508 All 11 of the fastest Square 600 unicorns achieved $1B+
Pluralsight 601 in under two years
Insidesales.com 624
Snap 626
Oscar 640
Apttus 714
Days From First Equity Financing To Billion Dollar Valuation Financing
#CBI_Unicorns www.cbinsights.com 31 CROSSOVER PARTICIPATION FUNDING ACTIVITY, ACTIVE CROSSOVERS
#CBI_Unicorns www.cbinsights.com 32 CROSSOVER PARTICIPATION QUARTERLY UNICORN FINANCING HISTORY 2015 PEAK ACTIVITY Q1’12 – 2017 QTD (2/1/2017)
Q3’15 saw $1B deals with 27 26 crossover participation to: Didi Chuxing, Uber, and SoFi 16 16 13 14 2017 has seen two 11 unicorn financings with 10 11 9 9 crossover participation:
4 8 8 $3,075 6 4 5 - URWork: $58M Series B 5 $1,676 2
$1,103 2
$913
$895 $856
$716 $774
$302 - Funding Circle: $100M
$357
$198
$158
$6,043 $5,383 $8,068 $9,338 $4,726 $5,168 $2,226 $75 Series F 2012 2013 2014 2015 2016 2017 Disclosed Funding ($M) Deals
#CBI_Unicorns www.cbinsights.com 33 MOST ACTIVE CROSSOVER INVESTORS IN UNICORNS FIDELITY ON TOP 2012 – 2017 YTD (2/1/2017) Rank Investor Select Investments Fidelity, participated in 1 $1B+ funding rounds to Fidelity Investments Airbnb, Snap, Uber, SpaceX unicorns: Airbnb, Snap, 2 Uber, and SpaceX Wellington Management Airbnb, Uber, SoFi, Magic Leap
3 Wellington, participated in Goldman Sachs Oscar, Compass, Uber, Xiaomi $1B+ funding rounds to 4 unicorns: Airbnb, Uber, Tiger Global Management GrabTaxi, Hike, Souq.com, Avant and SoFi 5 T. Rowe Price Magic Leap, Snap, OfferUp, WeWork Goldman Sachs, 6 participated in $1B+ Baillie Gifford & Co. Auto1 Group, Souq.com, Flatiron Health, Funding Circle funding rounds to unicorns: Uber and Xiaomi
#CBI_Unicorns www.cbinsights.com 34 CORPORATE PARTICIPATION INVESTMENTS, ACTIVE CORPORATES
#CBI_Unicorns www.cbinsights.com 35 CORPORATE PARTICIPATION QUARTERLY UNICORN FINANCING HISTORY Q3’15 MOST ACTIVE Q1’12 – 2017 QTD (2/1/2017) Q3’15 saw corporates 28 participate in $1B+ funding rounds to: Didi 22 22 Chuxing, Uber, SoFi 17 15 2017 has seen 5 rounds 15 16 13 14 with corporate 12 11 participation: Zoom
5 ($100M Series D), Zhihu 7 5 ($100M Series D), 3 3 2 3 3 3
1 Homelink ($375M Other),
$1,078
$683
$475
$405
$314
$214
$300
$205
$2,328 $5,296 $2,981 $2,621 $3,218 $4,584 $4,893 $3,546 $5,310 $5,072 $4,856
$10,894 URWork ($58M Series B), $81 2012 2013 2014 2015 2016 2017 Insidesales.com ($50M Disclosed Funding ($M) Deals Series F)
#CBI_Unicorns www.cbinsights.com 36 MOST ACTIVE CORPORATE INVESTORS IN UNICORNS CHINESE CORPS ON TOP 2012 – 2017 YTD (2/1/2017) Rank Investor Select Investments Tencent’s largest unicorn 1 rounds include: Didi Tencent Holdings iCarbonX, Huochebang, Didi Chuxing, STX Entertainment Chuxing, Homelink, STX 2 Entertainment Alibaba Group Didi Chuxing, Magic Leap, One97 Communications, Lyft
3 Alibaba’s largest unicorn Google Ventures (GV) Carbon3D, Oscar, Flatiron Health, Gusto rounds include: Didi 4 Chuxing, Ele.me, Magic capitalG Snap, Ten-X, Stripe, Thumbtack Leap 5 Salesforce Ventures Gusto, Anaplan, Domo, Apttus
6 Comcast Ventures Instacart, Houzz, Vox Media, DocuSign
#CBI_Unicorns www.cbinsights.com 37 SELECT CORPORATE ACQUISITIONS OF UNICORNS CISCO SYSTEMS MOST 2016 – 2017 YTD (2/1/2017) ACTIVE
Cisco Systems, acquired two unicorns since 2016: AppDynamics and Jasper Technologies
Simplivity’s last private market valuation before the acquisition was $1.1B, HP acquired the company for $650M in a down exit
* AppDynamics deal is not finalized
#CBI_Unicorns www.cbinsights.com 38 APPDYNAMICS VALUATION HISTORY ($M) 2X LAST PRIVATE Q2’08 – 2017 YTD (1/24/2017) MARKET VALUATION APPDYNAMICS VALUATION HISTORY $Ms, Q2'08 - 2017 YTD (1/24/2017) $3,700 Last raise was $158M 97% Series F, valued at $1.88B
$1,878 97% increase from 2016 valuation $1,118 10 years from $12M to $550 exiting for $3.7B $180 $12 $42
Q2'08 2009 2010 2011 2012 2013 2014 2015 2016 2017
Q2'08
*AppDynamics deal is not finalized
#CBI_Unicorns www.cbinsights.com 39 EXIT TRENDS M&A & IPOs, TOP EXITS
#CBI_Unicorns www.cbinsights.com 40 ANNUAL UNICORN M&A/ IPO ACTIVITY 31 IPOS & 24 M&AS 2012 – 2017 YTD (2/1/2017) SINCE 2012
2016 most active despite low number of IPOs
United States and China 5 have the most exited unicorns
Top 3 IPOs: Alibaba
13 7 Group (2014), Facebook (2012), JD.com (2014) 3 3 1 4 4 13 2 2012 2013 2014 2015 2016 2017 YTD M&A IPO (1/27/2017
#CBI_Unicorns www.cbinsights.com 41 UNICORN M&A TIMELINE M&A ACTIVITY RISING 2013 – 2017 YTD (2/1/2017)
63% of M&As since 2013, occurred since 2016
Top 3 M&As: WhatsApp (2014), Stemcentrx (2016), Uber China (2016)
2017: Simplivity (acq. by HP), AppDynamics (acq. by Cisco)
#CBI_Unicorns www.cbinsights.com 42 VALUATION HISTORY OF THE TOP 5 US UNICORNS SNAP INC. FILED FOR Q3’13 – 2016 *Snap’s valuation is the mid-range estimate for its reported early 2017 IPO IPO THAT COULD VALUE THE COMPANY NORTH OF $22B
Snap last valued at $18B in private markets, just behind: Uber, Airbnb, Palantir, above WeWork
Snap’s IPO could be the first in 2017, and would be the first since Meitu went public in December 2016, at a valuation of $4.9B
#CBI_Unicorns www.cbinsights.com 43 SOCIAL MEDIA GIANT’S PRICE/USER MULTIPLE SNAP’S PRICE/USER *Snap’s valuation is the mid-range estimate for its reported early 2017 IPO MULTIPLE IS 100X
Although investors may be betting on future Pinterest growth, it still means that Snap is cheaper on this basis than Pinterest
That would also make Snap roughly twice as valuable as Twitter 185x 110x 100x 47x 41x 39x 20x 14x 9x Facebook Pinterest Snap Whatsapp Twitter Line Instagram Hike Viber Facebook dominates Price/Users
#CBI_Unicorns www.cbinsights.com 44 TOP VC-BACKED UNICORN EXITS BY VALUATION ALIBABA BIGGEST EXIT as of 2017 YTD (2/1/2017) Rank Company Date Of Exit Valuation At Exit
The last two years has not seen a top six VC- 1 Alibaba Group (IPO) 9/19/2014 $167B backed unicorn exit 2 Facebook (IPO) 5/18/2012 $104B 3 of the top 6 exited with IPO in 2014 3 JD.com (IPO) 5/22/2014 $28B
4 1 acquisition in the top 6: WhatsApp (Acq.) 2/19/2014 $22B WhatsApp, acq. by Facebook 5 Twitter (IPO) 11/7/2013 $14B
6 Groupon (IPO) 11/4/2011 $12B
#CBI_Unicorns www.cbinsights.com 45 MOST WELL-FUNDED VC BACKED UNICORNS BEFORE EXIT JD.COM ON TOP as of 2017 YTD (2/1/2017)
Rank Company Total Disclosed Funding Date Of Exit 7 of the 10 companies are US based, and 3 are 1 JD.com $2.8B (IPO) 5/22/2014 Chinese companies: 2 Facebook $2.5B (IPO) 5/18/2012 JD.com, Dianping, Ucar 3 Rocket Internet $1.5B (IPO) 10/2/2014 Group 4 Legendary Entertainment $1.5B (Acq.) 1/12/2016 5 Dianping $1.4B (Mrg.) 10/8/2015 6 Fisker Automotive $1.3B (Acq.) 2/24/2014 7 Ucar Group $1.3B (IPO) 7/22/2016 8 Groupon $1.1B (IPO) 11/4/2011 9 Sunrun $986M (IPO) 8/5/2015 10 LivingSocial $919M (Acq.) 10/26/2016
#CBI_Unicorns www.cbinsights.com 46 UNICORN TRENDS TO WATCH
#CBI_Unicorns www.cbinsights.com 47 NEWEST MEMBERS OF THE GLOBAL UNICORN CLUB THREE NEW UNICORNS as of 2017 YTD (2/1/2017) IN 2017 YTD (1/31/2017)
Zhihu is a Q&A website, and URWork offers co- (Zhihu) working spaces, both are based in China
Zoom offers a cloud- based enterprise video conferencing platform
#CBI_Unicorns www.cbinsights.com 48 WOUNDED UNICORNS: SELECT $1B+ COMPANIES’ DOWNROUNDS NOT ALL UNICORNS as of 2017 YTD (2/1/2017) WILL THRIVE
$3.4B $1.1B
GFG down $2.3B
$3.2B $1.7B $1.2B Jawbone down $2B Lianjia down $500M
$6.2B $5.7B
(Homelink)
#CBI_Unicorns www.cbinsights.com 49 DEAD UNICORNS: PAST $1B+ COMPANIES OUT OF BUSINESS SOME UNICORNS WON’T SURVIVE
Mode Media shut down without new investors or an acquirer
Fisker Automotive acquired in a bankruptcy auction
Powa Technologies’ filed for bankruptcy and had its assets sold off
#CBI_Unicorns www.cbinsights.com 50 SELECT $1B+ ROUNDS FOR LATE STAGE UNICORNS $1B+ ROUNDS ARE as of 2017 YTD (2/1/2017) SHOWING UP MORE OFTEN
Late-stage private companies that are among the most valuable in the world are staying private longer
These companies are also raising $1B+ rounds of funding from large institutional investors
#CBI_Unicorns www.cbinsights.com 51 IPO CHATTER IS UP: SNAP COULD LEAD THE WAY
INVESTORS HOPE SNAPCHAT WILL UNLOCK IPO MARKET FOR TECH UNICORNS
11/16/2016
#CBI_Unicorns www.cbinsights.com 52 Thank you, any questions?
#CBI_Unicorns www.cbinsights.com 53 CBINSIGHTS.COM @ cbinsights
+1(212)292-3148
#CBI_Unicorns