Actifio, Cloudera, Eventbrite and Hortonworks all raised financing at a $1B+ valuation in the last month. And each of the respective billion-dollar rounds were led by the private investing arm of either a hedge fund or mutual fund. Now, using CB Insights data, the prevalence of hedge funds and mutual funds among the current crop of billion-dollar startups becomes quite apparent.
Hedge funds and mutual funds have collectively invested in 44% of the current crop of private, venture-backed companies that have raised financing at a $1B+ valuation. And corporations and corporate venture arms are even more well-represented – having invested in a notable 71% of the billion-dollar club.
As we’d previously highlighted, getting to a $1 billion dollar valuation takes significant amounts of capital and so the influx of well-heeled mutual and hedge fund and corporations may not be all that surprising.
The chart below highlights the investor types most prominent among the billion-dollar club. While the VCs who got in early stand to reap the biggest gains from the potential unicorn exits, it seems the addition of a hedge fund, mutual fund or cash-rich corporate investor has become a precondition to achieve a $1B+ valuation.
All of the underlying exit and investor data used in this research brief is on the CB Insights Venture Capital Database.
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:
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