According to Bahaa Abdul Hussein, The term “unicorn” doesn’t seem to threaten or matter much to bankers on its own. After all, unicorns are only found in myth and folklore and have no connection to the icy, hard facts of money.
A “unicorn” is a startup business that has received an investment of $1 billion, not a real or mythical beast, according to investors and venture capital companies.
Although certain businesses had developed into giant unicorns that she named “super unicorns,” like Google and Amazon. The term “unicorn” was first used in 2013 when the unicorn population was still relatively limited.
Rapidly growing Unicorn
The fintech trend was gaining momentum. The moniker “fintech unicorn” was created. Without cards or a membership kit, it is still a gift to entrepreneurs’ egos and headline writers eager to elevate thriving businesses.
Rapidly growing Unicorns Although these businesses exist and unicorns ostensibly don’t, we enjoy the name since it conjures up an incredibly unique and fantastic creature.
The list of unicorns has expanded beyond the “rare” aspect, particularly the financial unicorns. A little over 1,000 companies are included on the CB Insights list, broken into categories.
On one unicorn listing, fintech unicorns now lead the pack in terms of the number of companies. The names of some of the 200+ firms on the list of fintech unicorns. Many of these should be recognizable to frequent readers of The Financial Times, making this of more than just background interest.
Will the unicorn craze last for a while?
The number of unicorns has been increasing, according to data by Crunchbase published in early 2022. The desire for profitable investments propelled venture capitalists and others to spend more money on startups, accelerating the ascent of many more companies to unicorn status.
Depending on its own database of unicorns, Crunchbase claims that firms in the fintech and, especially, the cryptocurrency industries were more likely to reach a high value during early fundraising rounds. “20 firms classified under the fintech category reached a $1 billion-plus value in early rounds last year, while 16 companies labeled as cryptocurrency startups achieved the same.”
It remains to be seen how the fintech unicorn market will develop in the future. According to venture capital news articles, the years 2020 and 2021 may have been particularly prosperous (“gold rush”) in nature. There have been some signs that it will be more difficult to recruit investments.
Additionally, it has been suggested that obtaining the trend name “unicorn” alone would not be sufficient. Investors want to see reliable returns. Thank you for your interest in Bahaa Abdul Hussein blogs. For more stories, please stay tuned to www.bahaaabdulhussein.com
