The rise of the unicorns: 1000% growth in a 5-year span!
One could say, the global unicorn club has been growing to a bigger degree during the past 5 years than since the first unicorns ever were born in the 90’s.
It all started with companies like Facebook or Google and obviously there were some more companies reaching unicorn-valuations at the time of the Dotcom Bubble – not all survived though.
Nowadays though, the market environment is so unicorn-friendly that the total number of existing unicorns surged from 80 to 800 since 2015!
Of course, every investor wants to back a unicorn. Today, we want to have a closer look at how Europe is performing as well as the health sector in particular.
Early-stage pays off!!!
There are some very successful investors out there that managed to back more than 10, 20 or even 100 unicorns – which is tremendous! A regular early-stage investment can start from as little as $100.000 at a rather low valuation of the company. Making it to a $1 billion dollar valuation is going to transfer this $100.000 investment potentially into a 1000x return! And now imagine doing this roughly 10 times like Tiger Global Management is doing. But what about smaller investors? They could potentially enter an early-stage company as well for little money, couldn’t they?
Small investments, big impacts
Huge investment firms like Tiger, Tencent Holdings or Sequoia Capital are definitely having an edge on finding good deals. The quality of a company is of importance but a lot of times investors are underestimating the impact of the right timing to invest in a promising start-up. CBI writes:
“For investors looking to reap major returns from their investments, it’s not only important to invest in high-performing companies but to invest in them early. Getting involved early on generally means greater equity, greater control, and greater eventual returns. “
Big investors are having the contacts as well as the capacity to find good deals at the right time – this is no wonder though since this is their job. And here we have a reason why smaller investors are having a significant strategic disadvantage: investing in companies usually is not their job, they do it on the side
This is where small investors should hire a financial advisor to help them with their investment decisions. Aescuvest as a digital venture capital firm is also supporting small investors on finding their right investments.
How is Europe doing in “global unicorn production”?
Analyzing the existing unicorns, we have found out that 118 of 842 got born on European turf. This is not too bad since USA and China have been the leading forces in that matter for a long time. Unicorn investors are almost all based in the USA or China. Countries in Europe that are most active in creating unicorns are France, Germany, Ireland, Switzerland or Sweden. Aescuvest is also receiving most of the applications from exactly those countries. In the healthcare sector there are 5 companies coming from Europe that reached a valuation over $1 billion.
We are creating European unicorns
Aescuvest is the hub of high-potential healthcare start-ups in Europe. We are assembling a portfolio of promising start-ups and presenting them to the public. Aescuvest is on the Mission of democratizing venture capital!
The first investors that are getting the chance to invest in Aescuvest’s newest opportunities are the members of our 10x health club. Quarterly we are informing members of upcoming opportunities before those start-ups are getting funded in our public campaign. This way, investors can secure themselves the best deal on a company that could potentially reach unicorn status one day.
How to reap major returns
Best performing investors like Accel have more than half of their money in eary-stage investments! Tiger, mentioned before, invested just 10% of their now unicorn deals in an early-stage status of the respective company. This makes Accel the most efficient unicorn-investor on the planet. Their strategy is simple: finding gems on the market before others do and securing valuable seed-deals. Early-stage investments are not easy and a risky endeavor – but with a good risk-management strategy worth every bet.
With Aescuvest EVERYONE can do so
With as little as 250€ investors can start their early-stage investment journey with Aescuvest. On top of that, all our start-ups went through delicate analysis by industry experts and our internal start-up relations team. This is what we call a very good risk-management strategy. After reading this article you should now be able to understand by yourself what happens with your investment in case one of our start-ups reaches unicorn status. And with an increase in unicorns of 1000% within the past 5 years we can only guess what is going to happen the next 5 years.