The billion-dollar startup club has become a lot less exclusive in 2014. According to CB Insights data, 14 different U.S. tech companies newly entered the once rarefied billion dollar valuation club in the first six months of the year. That represents a notable 133% increase from the total number of companies that raised at a $1B+ valuation in all of 2013.
While examples are abound of high flying companies that have fallen from grace before reaching liquidity, the rise of new billion-dollar tech companies can be attributed to a variety of factors now making an impact on late-stage investing including the rise of corporates in tech VC and hedge funds and mutual funds looking to capture potentially lucrative pre-IPO gains.
The chart below highlights the number of tech companies that raised their first financing round at a disclosed $1B+ valuation in half year increments starting in 2012. Note: The chart does not include Houzz and ZocDoc, which are both reportedly raising $1B+ financing rounds.
All of the underlying exit and investor data used in this research brief is from the CB Insights Venture Capital Database and uses our private company valuations and valuation multiples.
This report was created with data from CB Insights’ emerging technology insights platform, which offers clarity into emerging tech and new business strategies through tools like:
- Earnings Transcripts Search Engine & Analytics to get an information edge on competitors’ and incumbents’ strategies
- Patent Analytics to see where innovation is happening next
- Company Mosaic Scores to evaluate startup health, based on our National Science Foundation-backed algorithm
- Business Relationships to quickly see a company’s competitors, partners, and more
- Market Sizing Tools to visualize market growth and spot the next big opportunity