China created 97 tech unicorns last year which means a new tech startup valued at least $1 billion has spawned every 3.8 days. Among them are companies from such sectors as consumer internet, online shopping and electric vehicles with a combined valuation of $178 billion, Bloomberg informed referring to Shanghai-based research firm Hurun Report.
Hurun Research Institute reports that unicorns are far more common in internet services, e-commerce, fintech, and medtech. Less amount of 1-billion-valued startups appeared in entertainment, big data, logistics, automotive, AI, and education. The least number of unicorns popped up in such areas as real estate, hardware, blockchain, new retail, robotics, games, and energy. Though it’s important to point out that while the number of unicorns in e-commerce and hardware fells year-on-year, we can see the considerable growth in numbers of high-valuable startups in the industries of education, blockchain, and energy. The list of new billion-dollar startups topped cryptocurrency miner Bitmain Technologies Ltd. with a price tag of almost $7.5 billion.
According to China Daily, it took on average six years for a startup to become a unicorn on the list. The youngest is the 1-year-old electric vehicle enterprise Leapmotor. It’s also interesting that three companies quadrupled their evaluations as the fastest-growing ones: Chinese personalized news aggregator Toutiao; a short video operator Kuaishou; and an online fresh food platform Meicai. The most significant amount of startups in China every year spawns in Beijing, second and third places take Shanghai and Hangzhou.
A unicorn is a startup that has been valued by investors at more than $1 billion. Venture capitalist Aileen Lee invented the term in 2013. He wanted to point out the unique nature of such companies: “Yes we know the term “unicorn” is not perfect – unicorns apparently don’t exist, and these companies do – but we like the term because to us, it means something extremely rare, and magical,” Lee explained. Today tech unicorns aren’t so rare anymore, but the term is still deeply embedded in the tech markets vocabulary.
When the market is full of innovative startups, it may be hard to stand out for new companies. To stand out in the booming industry, a company should be unique, use modern approaches in technical and advertising solutions, spread a clear message, use creative marketing, grow the community, not forget to network with other startups. In such conditions, a marketing part is becoming at least as important as the tech part. At the same time, the traditional ads tend to fail today because users dislike it and, becoming more educated, they use all possibilities to avoid ads. Here content marketing helps very much, as it not only causes a positive response from a community but also helps to build a stable company’s reputation and to share the company’s unique message.
Starting a business is never easy. But the world we live in today gives plenty of opportunities for those who are searching for them. An open mind, eagerness to become educated and try new technologies and approaches, and willingness to challenge yourself every day definitely may lead you and your company to success.