{"id":31979,"date":"2023-10-20T14:26:32","date_gmt":"2023-10-20T14:26:32","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/more-than-one-unicorn-created-per-week-but-seed-stage-funding-down-report-says-startupsmart\/"},"modified":"2023-10-20T14:26:32","modified_gmt":"2023-10-20T14:26:32","slug":"more-than-one-unicorn-created-per-week-but-seed-stage-funding-down-report-says-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/more-than-one-unicorn-created-per-week-but-seed-stage-funding-down-report-says-startupsmart\/","title":{"rendered":"More than one unicorn created per week but seed stage funding down, report says – StartupSmart"},"content":{"rendered":"
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This year has seen an average of 1.3 unicorn companies created each week, with 23 emerging in the last quarter alone, a new Venture Pulse report finds.<\/p>\n

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The new study from CB Insights and KPMG<\/a>, covering the third quarter of 2015, shows that while big later-stage funding rounds have led to more VC investment overall, seed stage funding rounds are still on the decline.<\/p>\n

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Nearly $US58 billion has been invested in US startups in the first nine months of this year, more than all of last year, while 23 new unicorns emerged in the third quarter.<\/p>\n

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There are now 140 of these so-called unicorns worldwide, with a cumulative value of more than $US500 billion.<\/p>\n

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According to the study, VC-backed companies raised nearly $US40 billion globally from 1799 deals, in a quarter for \u201cbig, big deals\u201d.<\/p>\n

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An emerging trend from the quarter review is the growth of \u2018mega rounds\u2019 of more than $US100 million, which have \u201cdrastically increased\u201d and contributed to the proliferation of startups worth more than $US1 billion.<\/p>\n

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\u201cGlobally, investors continue to target bigger and bigger deals,\u201d the report says. \u201cThis, along with the continued availability of late stage deals, may be spurring the continued rise of unicorns.\u201d<\/p>\n

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Despite the rise in this big later-stage deals, the number of VC-back seed rounds has reduced around the world for the fifth time in a row.<\/p>\n

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\u201cDespite more micro-VCs and multi-stage funds investing at the seed stage, seed investments took less than a fourth of all deals to VC-backed companies in the US,\u201d the report says.<\/p>\n

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KPMG national tax leader Francois Chadwick says this could be the result of a \u201cherd mentality\u201d among investors.<\/p>\n

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\u201cEveryone is chasing really large deals,\u201d Chadwick says.<\/p>\n

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\u201cThose that are coming in late suddenly feel like they\u2019ve been left out, not invited to the party, and they now need to buy the really expensive ticket to get into the party.\u201d<\/p>\n

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The report highlights the rapid growth of VC investment in Asia, which saw $US13.5 billion over 373 deals, three new unicorn companies, and now accounting for more deals that Europe.<\/p>\n

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It also highlights the successful financing of two Aussie startups: Prospa\u2019s $60 million series B round<\/a> and Beat the Q\u2019s $5 million series A<\/a>.<\/p>\n

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The VC report identifies some growing trends in areas of investment around the world.<\/p>\n

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Although internet and mobile tech continues to overwhelmingly dominate the market, accounting for over two thirds of all the deals, it finds that healthcare is a significant rising area, one that\u2019s becoming a \u201chotbed of innovation\u201d.<\/p>\n

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\u201cThere is an underlying trend towards investment in disruptive technology that improves efficiency \u2013 whether in health systems, the delivery of treatment or in the process of developing drugs,\u201d it says.<\/p>\n

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Want to grow your business with Instagram? <\/i>StartupSmart School can help<\/i><\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

This year has seen an average of 1.3 unicorn companies created each week, with 23 emerging in the last quarter<\/p>\n","protected":false},"author":2,"featured_media":62681,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/31979"}],"collection":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/comments?post=31979"}],"version-history":[{"count":0,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/31979\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media\/62681"}],"wp:attachment":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media?parent=31979"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/categories?post=31979"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/tags?post=31979"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}