229 Unicorn Startups Raise $175 billion
According to Venture Beat, “There are now 229 unicorn startups, with $175B in funding and $1.3T valuation.” The mythical unicorn refers to a company with market capitalization or private valuation of $1 billion or more. Check out Forbes list of unicorns. Startup valuations are typically based on the company’s investors during their rounds of raising capital–whether via going public with an IPO or going the private capital route with venture capital (VC), private equity (PE), and angel investors who use private placements and a PPM.
Our clients aspire to reach unicorn status, and that starts in the early going of a company. Of course you need a killer idea, sharp and focused management, and the right financial resources. PPM is in the business of helping companies and startups with fundraising, and we advise on business model and management practices, as well. Our business plans help entrepreneurs think strategically and for the long term. Our private placement memorandum writing produces offering documents that keep the founders in control without giving up any upside. From there, we continue to support clients through their dealing with investors, listing their stocks or bonds on exchanges, transferring and registering their securities with CUSIP and/or ISIN numbers, and much more. We structure the terms of the offering and the term sheet in the PPM in a way that advantages our clients and gives them the resources and flexibility to grow.
Not all our clients will become the next Uber, but we work with companies to lay the groundwork for their success. One thing the unicorn list proves, though, is that there is investment money out there for the right company. If you have the right idea, set up the business right, bring in the right people, investors will back you. There is capital to be found. You can be funded. As Venture Beat describes:
Ninety-eight of the unicorns are in the consumer space, especially in retail and the sharing (or “collaborative”) economy. Examples of unicorns in retail include the online marketplace Etsy and Alibaba, the massive Chinese commerce platform. In the collaborative economy, you’ll recognize names like Airbnb and Lyft. Another 112 unicorns can be found in enterprise technology infrastructure or vertical industries, such as fintech, healthtech, cleantech, and the current growth darling, IoT (Internet of Things).