Unicorn’s Today are Simply Horses With A Horn Stapled To Their Heads

A unicorn used to be such an impressive and unique moniker.  today they are a dime a dozen and in no way unique.  These are companies that have a valuation of $1 billion and over.  CBInsights reported that  unicorn creation has surged so much this year that on average 1.3 so-called "unicorn" companies have been created every week in 2015.  While I believe we are already in a bubble every bubble needs to expand to an uncontrollable sight and today in spite of Silicon Valley insiders' fears of a tech bubble, that number doesn't seem to be declining.

The third quarter of 2015 also doubled in the volume of new unicorns compared to the same quarter last year. Q3 2015 saw the addition of 17 new US unicorns and 3 new Asian ones, including companies like subscription food delivery service HelloFresh, Thumbtack, and Carbon3D.

In total, according to CB Insights, there are 140 billion-dollar "unicorn" companies globally with a cumulative valuation of $503 billion.

The number of mega-rounds of funding, which are defined as worth more than $100 million, has risen 125% from a year ago.

While the overall funding market is as to date in 2015 there has been over $57 billion raised in contrast to %56.6 billion for all of 2014.

As the mega deals rise seed and early stage investing is taking a beating and have dropped to a five-quarter low.  While this may be due to such a large infusion of cash into late-stage deals it is concerning.  Much of the money being tied up is also staying put as there are fewer IPO exits than in previous years.  This is a wait and see situation as we need to begin to see the IPO market pick up to free up monies to go back into some of the smaller deals that need funding.

 

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