The United States is enjoying a robust startup scene that has resulted in most companies attracting significant valuations backed by external factors like friendly regulations. Indeed, the operating conditions have partly resulted in the U.S. dwarfing other global economies in the number of unicorns.
In particular, data acquired by Finbold indicates that as of November 2022, the United States had the highest number of unicorns at 704. China comes a distant second with 243 unicorns, while India ranks third at 85. The United Kingdom ranks fourth with 56, while Germany ranks fifth with 36 unicorns. Indeed, the U.S. has at least double the number of unicorns compared to both China and Indian combined.
Other countries making up the top ten list with the highest number of unicorns include France (27), Israel (26), Canada (25), South Korea (22), and Singapore (19).
Elsewhere, a breakdown of top unicorns in the United States indicates that the space company SpaceX ranks top with a valuation of $127 billion, while payment firm Stripe ranks second at $95 billion. Instacart ranks third, valued at $39 billion, followed by Databrick’s $38 billion valuation. Meanwhile, gaming company Epic Games ranks fifth at $31.5 billion.
Other top-valued unicorns in the U.S. include Fanatics ($27 billion), Chime ($25 billion), Miro ($17.5 billion), Discord ($15 billion) and Ripple ($15 billion).
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Drivers of U.S. unicorn dominance
The research highlighted factors behind the U.S. and China’s dominance in the global unicorn scene. According to the research report:
“Notably, the unicorns are spread globally, but the United States and China account for the giant share considering the two countries are the largest economies in the world. However, the U.S. domination can be tied to specific factors like an enormous funding pool, innovation capability and a well-regulated environment. In this case, entrepreneurs can launch different projects without worrying about funding or the government clamping down.”
With startups attaining unicorn status, the next possible course of action is to go for an Initial Public Offering (IPO). However, the prospects of an IPO significantly depend on how the economy performs, considering the stock market remains depressed.
