November Is America’s Worst Month for Businesses to Achieve Unicorn Status

New research from the personal finance experts at money.co.uk found that there were 847 unicorn businesses across the world as of September 2021.

Interested in these unicorn enterprises, the personal finance experts wanted to discover which month is the most common for unicorn businesses to reach the status of being valued at $1 billion or more (and therefore gaining ‘unicorn’ status).

The researchers analyzed data from CB Insights between January 2010 to September 2021 to establish which month is the most common for startup businesses to gain unicorn status. To be considered a unicorn startup, a privately owned business needs to reach an investor valuation of $1 billion or more.

The study found that May is the most popular month for startups to become unicorn in America, with 47 businesses achieving this status in the month of May between 2010 to 2021. The accumulative valuation of these businesses is an astonishing $105.04 billion.

Comparatively, data from the last 11 years notes November as the month which has seen the least number of startup businesses attain unicorn status in America at 20.

• Data from the past 11 years shows that the month of May has the most number of startups attaining the status of unicorn business in America at 47
• In contrast, November is the month which has seen the least number of startup businesses become unicorns in America at 20
• From January 2010 to September 2021, 847 startups across the world achieved unicorn status.

In America, the five industries which produced the most unicorn businesses were: internet software and services (107), fintech (85), health (41), artificial intelligence (33) and other (26).

Month

The number of startup businesses established as 'unicorn' in America

The combined financial valuation of startup businesses established as 'unicorn' ($USD) in America

January

33

$151.07 Billion

February

24

$85.78 Billion

March

42

$117.18 Billion

April

46

$108.03 Billion

May

47

$105.04 Billion

June

35

$93.06 Billion

July

44

$118.75 Billion

August

36

$90.65 Billion

September

43

$121.54 Billion

October

28

$116.95 Billion

November

20

$79.14 Billion

December

26

$197.30 Billion

 

Spotlight on the Rest of the World

 

Globally, the researchers found that July is the most popular month for startups to become a unicorn, with 96 businesses achieving this status in the month of July between 2010 to 2021. The accumulative valuation of these businesses is an astonishing $292.22 billion.

The month coming into second place is September, as 90 startup businesses gained unicorn status from 2010 to 2021, with a collective valuation of $227.13 billion.  

In joint third position are April and June, with both months seeing 88 startup businesses from 2010 to 2021 enjoying the newfound reputation of unicorn.

The combined valuation of the 88 businesses in April is $360.08 billion, whilst the combined valuation of June’s businesses is $208.51 billion.

Contrastingly, data from the last 11 years notes February as the month which has seen the least number of startup businesses attain unicorn status at 43.

 

The world’s best month for unicorn businesses

Month

Number of startup businesses established as 'unicorn'

Combined financial valuation of ($USD)

January

64

$271.60 Billion

February

43

$138.23 Billion

March

81

$241.50 Billion

April

88

$360.08 Billion

May

84

$226.04 Billion

June

88

$208.51 Billion

July

96

$292.22 Billion

August

67

$156.46 Billion

September

90

$227.13 Billion

October

54

$178.80 Billion

November

44

$126.60 Billion

December

48

$319.88 Billion

 

Overall, from January 2010 to September 2021, 847 startups have received the prestige of becoming a unicorn business and the total collective valuation of the 847 unicorn businesses is a colossal $2,747.05 trillion.

From the 847 startup businesses gaining unicorn status from January 2010 to September 2021, the five countries which produced the most were:

1. United States – 424
2. China – 165
3. India – 41
4. United Kingdom – 33
5. Germany – 19

Additionally, the five industries which produced the most were:

1. Fintech – 167
2. Internet software and services – 144
3. E-commerce and direct-to-consumer – 88
4. Artificial intelligence (AI) – 71
5. Health – 57

Salman Haqqi, personal finance expert at money.co.uk, offered guidance on what to consider when seeking a business loan to grow your business:

 

Be transparent

 

Making a concise business plan is important. It should establish how the business is going to realistically achieve desired milestones in the short and long-run, and how every penny of the bank loan will be spent throughout the different phases of expected growth. 

 

Be aware of loan covenants

 

Some banks will insist on a range of non-negotiable terms before providing you with the business loan. This could include the inability to take on additional loans, the inability to sell specific assets and the inability to pay cash dividends over a certain period.

Be aware of any loan conditions before agreeing to a business loan.

 

Seek expert advice

 

The business loans market (like many others) is very turbulent at the moment due to the economic uncertainty caused by the COVID-19 pandemic.

If you are struggling to navigate through it, consider consulting a qualified expert to help you through the loan application and analysis process.