Dwelling as we’re in an IPO drought, new information factors concerning the monetary well being of unicorns are annoyingly scarce. Unicorns — personal tech firms value $1 billion or extra — have develop into an asset class of their very own. Crunchbase counts 1,386 world unicorns, pegging their worth at $4.8 trillion. CB Insights counts 1,180 value $3.8 billion. No matter which quantity you assume is extra correct, it’s clear that unexited unicorns symbolize one of many largest swimming pools of paper wealth on the planet.
A programming notice: I’m off subsequent week. The superb Anna Heim, who usually helps write The Alternate and just lately took over its weekend newsletter, will likely be filling in subsequent week. She’s the very best! I’m again on the twenty second!
That mentioned, there’s an excellent probability {that a} portion of that illiquid worth isn’t actual, in that if each unicorn needed to increase capital right now, an excellent quantity wouldn’t be capable to defend their most up-to-date personal valuation. Nevertheless, if we ranked the unicorn cohort by high quality, the very best firms — usually additionally essentially the most worthwhile — are literally not as overvalued as you would possibly assume.
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