Spotting Future Unicorns - Predicting Startup Success using an AI Model

The Unicorn Prediction Model predicted all potential startups across sectors that have the potential to become unicorns (valuation > US$1bn). As of December 2021, the AI driven model predicted 2,884 startups to become potential unicorns. Out of 468 Startups that turned unicorns in 2021, 210 companies have been correctly predicted by the model.

Key Highlights

• The report maps predicted unicorns against established unicorns highlighting top sectors, geographies and themes.
• The report analyzes high probability unicorns across sectors and highlights a spike in unicorn births from 2020 to 2021, Q4 2021 registered the highest unicorn births of 202, registering a growth of more than 3x compared to the comparable period of Q4 2020. It presents a hit rate of 50% in terms of Unicorn Conversion Prediction using the anaylst's ML model.

Scope

• Based on the analyst's proprietary ranking of 10,000 top startups, 120 startups globally are shortlisted for each sector/theme, of which 50 startups are predicted to become future unicorns based on the analyst's proprietary Machine Learning Model.
• The 10,000 top startups are spread over 70 countries with the US accounting for half of them, followed by China. Critical sectors in the startup universe include TMT (56% predicted unicorns vs. 60% established unicorns), Financial Services (11% predicted unicorns vs. 12% established unicorns), Pharmaceuticals and Healthcare (10% predicted unicorns vs. 2% established unicorns), , and Retailing (4% predicted unicorns vs. 3% established unicorns), followed by other sectors. Startup Hubs Producing most Existing and Predicted Unicorns include US, China, India, UK and Germany. US will continue to dominate; China is expected to slow down from current levels of unicorn births, but there will be significant growth in India, UK, & Germany.

Reasons to Buy

• The Potential Unicorns list offers early predictive intelligence and enables to spot tomorrow's winners today. The model identifies venture funded companies which have the potential to become unicorns (a valuation of at least $1 billion) driven by the proprietary machine learning algorithm which decodes millions of interactions between key deal attributes.
• The report presents unicorn ecosystem spanning across sectors, it highlights a spike in unicorn births from 2020 to 2021, Q4 2021 registered the highest unicorn births of 202, registering a growth of more than 3x compared to the comparable period of Q4 2020.AI driven model predicted 2,884 startups to become potential unicorns. Out of 468 Startups that turned unicorns in 2021, 210 companies have been correctly predicted by the model. the analyst's AI model predicts future unicorns with ~45% accuracy.