Value of the Global Top 100 Unicorns falls by $10bn

The valuation of the Global Top 100 Unicorns decreased by $10bn (<1%) compared to a 30% valuation increase in the previous period according to new analysis by PwC.

PwC’s latest Global Top 100 Unicorns report showed the aggregate value of the Top 100 Unicorns stood at $2,001bn compared to $2,012bn the year before*.  The report also shows that the valuation threshold to enter the Top 100 Unicorns fell by $0.2bn to $7.4bn in line with the overall decline in the valuation of Unicorns. Overall, the total number of Unicorns globally rose by 104 from 1,281 in 2022 to 1,385 in 2023, down compared to the previous year which saw 480 new entries.

The makeup of the Top 100 Unicorns consists of 41 Unicorns (down from 44), 56 Decacorns (up from 53) and three Hectocorns** (the same as last year). There were ten new entries into the Top 100 this year. Of the top 100 last year, two companies exited the list following their respective IPOs, whilst a further two companies exited the list as the companies ceased operations. 

Kat Kravstov, Capital Markets Director at PwC UK, said:

“Only a few new entrants made it to the top 100 unicorns list this year and, whilst the broader market conditions did not help, arguably the current challenging macroeconomic environment has helped to flesh out the desirable characteristics of a successful unicorn. Going back to basics with key ingredients of success being the disruptive nature of the product or service, often technology powered, and a business that is fit for sustainable growth.”

Regional split

The Top 100 Unicorns based in the US and China increased in value by 5% in 2023 while the Top 100 Unicorns from Europe and the Rest of the World declined 18% ($88bn) in value. There are six Unicorns in the Top 100 from the UK in 2023, one less than last year, with their collective value dropping from $121bn to $112bn.

Unicorns by industry

The emergence of AI drove up the overall value of the Top 100 Unicorns. The aggregate value of AI related companies increased by 43% ($139bn) with one breaking into the top five Unicorns. Fintech continues to be the dominant industry in the Top 100 with 31 companies, the same number as the previous period, despite the aggregate value of these companies falling $71bn. AI saw an increase from 11 companies to 13 as did Information Technology (22 to 23) and Clean Tech (4 to 5). There were decreases in E-commerce (eight to six), which also saw the aggregate value of Unicorns decline by 39%, and Consumer Products (12 to 11) as the continuation of cost of living challenges adversely impacts companies in these sectors.

Michael Wisson, Capital Markets Partner at PwC UK, said:

“We will be watching closely as to how Unicorn valuations evolve over the next 12 months. After a subdued period we expect more liquidity events in the coming year as cash reserves continue to run down and Unicorn backers seek to realise investments. Companies and investors will likely need to reconcile themselves to the valuation reset that has occurred as the cost of money has risen. We expect a renewed focus from investors on companies that can deliver sustainable revenue growth alongside a clear path to profitability to continue. We may therefore see a new type of unicorn emerge in the coming year - Unicorn 2.0, with more robust business, operating and financial models.”

Katrina Hallpike, Valuations Partner at PwC, UK, said:

“Given the challenging macroeconomic environment and the decrease in volume of venture capital funding rounds in 2023, investors are increasingly focused on the path to sustained profitability alongside top line growth. With many businesses reluctant to raise down equity rounds, we are seeing a rise in alternative funding structures such as convertible loan notes and increased liquidation preferences, alongside businesses looking to delay their next fundraising. There is still an appetite for quality however and we are seeing growth businesses with strong fundamentals continue to achieve attractive valuations.”

Ends

Notes to editor

*The PwC Global Top 100 Report analyses global Unicorns, including the Top 100 Unicorns, and highlights the changes in the composition of the list, comparing the data as at September 2023 and September 2022. 

**A Unicorn is a privately held startup company valued at over $1bn. A Decacorn is a privately held start-up company valued at over $10bn. A Hectocorn is valued at over $100bn. Global Top 100 Unicorn report ranks the largest companies by valuation in US dollars as at 30 September 2023

In contrast to our Global Top 100 publication with readily available stock market prices, the Unicorn valuations reflect those based on the most recent funding round completed in the relevant period.

A company’s location is the country or region where its headquarters are located.

China and its regions includes: Chinese Mainland, Hong Kong SAR and Taiwan.

Data sources: PitchBook Data, Inc with PwC analysis, this includes industry classifications. Data has not been reviewed by PitchBook analysts.