Want to Start a Billion-Dollar Business? Look to These Two Industries, Which Have the Most Unicorn Growth
During a tough fundraising year overall last year, the value of cybersecurity and AI unicorns saw double-digit growth.
Key Takeaways
- 2023 was a tough fundraising year, with many unicorn startups seeing declines in funding.
- Cybersecurity and AI unicorns grew, though.
- Of all the new unicorns that came onto the scene in 2023, 44% focused on AI and machine learning.
Cybersecurity and artificial intelligence stood out last year as the best-performing industries for unicorns or billion-dollar startups.
The estimated that the value of cybersecurity unicorns grew by 24.3% in 2023, while AI unicorns rose by 22.9%.
The growth in cybersecurity could be due to notable startups hitting startlingly high valuations, such as Wiz in valuation in February. The indexes determine valuation growth or decline by using a model based on comparable public companies and prices for private startups.
On the AI front, the rise of generative AI saw a corresponding interest in funding. OpenAI from Microsoft, for example, and Anthropic from Amazon. Of all the new unicorns that came onto the scene last year, 44% focused on AI and machine learning.
Overall, 2023 was a tough fundraising year, and unicorns in other industries dropped in valuation. Agriculture technology, for example, was the worst-performing sector for unicorns, with indoor farming startup and crop protection company feeling the effects of the fundraising downturn.
In addition to AI and cybersecurity, industries such as health tech, e-commerce, and fintech also saw unicorn growth.
Key Takeaways
- 2023 was a tough fundraising year, with many unicorn startups seeing declines in funding.
- Cybersecurity and AI unicorns grew, though.
- Of all the new unicorns that came onto the scene in 2023, 44% focused on AI and machine learning.
Cybersecurity and artificial intelligence stood out last year as the best-performing industries for unicorns or billion-dollar startups.
The estimated that the value of cybersecurity unicorns grew by 24.3% in 2023, while AI unicorns rose by 22.9%.
The growth in cybersecurity could be due to notable startups hitting startlingly high valuations, such as Wiz in valuation in February. The indexes determine valuation growth or decline by using a model based on comparable public companies and prices for private startups.
