Cazoo, Gousto and Gymshark were among the the latest companies to achieve unicorn status in 2020, a year which saw many businesses struggle.
A total of 76 companies achieved the milestone from around the world, with the majority coming from the US, according to recent data from Tipalti.
The figure is much lower than 122 new unicorns that emerged in 2019, and 126 in 2018, as the pandemic stifled the growth of many businesses of all sizes.
There are currently over 500 unicorn companies around the world with a total value of $1.7trn
A unicorn is a private company that has a valuation of more than $1billion. While millions of start-ups are born every year, only a handful make such a success of it, hence the label ‘unicorn’.
The majority of the world’s unicorns come from a small handful of countries, with the US and China alone accounting for 72 per cent, followed by India at 4.9 per cent, the UK at 4.7 per cent, and Germany at 2.4 per cent.
There are currently 523 such businesses around the world, and according to CB Insights, they have a cumulative valuation of $1.7trillion.
Last year saw 76 new names join the elite club. Accommodation rental marketplace Airbnb was among the latest entrants, along with online gaming platform Roblox.
Meanwhile, the National Stock Exchange of India was the highest valued newly formed unicorn of 2020, worth $6.5billion.
The industries that saw the most companies claiming unicorn status last year included fintech at 17 per cent, e-commerce at 14 per cent and internet software and services at 12 per cent.
This only highlights the increase in the use of technology and online services during the pandemic, which saw national lockdowns implemented across the world and people forced to stay at home.
The majority of 2020’s new unicorns came from the US (62 per cent), with 7 per cent from China while the UK saw six new entrants.
Gymshark founder, Ben Francis, is Britain’s richest self-made person under 30
This includes sportswear label Gymshark, food delivery service Gousto, used car marketplace Cazoo, electric vehicle developer Arrival, cybersecurity firm Snyk and events software provider Hopin.
Gymshark
This sportswear brand gained unicorn status in August 2020.
It was founded by 28-year-old fitness buff and former pizza delivery driver Ben Francis and a group of friends around ten years ago.
Francis became Britain’s richest self-made person under 30 last year after US private equity giant General Atlantic snapped up a 21 per cent stake in the business.
The sale values Francis’s stake at more than £650million.
The entrepreneur said: ‘I firmly believe Gymshark has the potential to be to the UK what Nike is to the US and Adidas is to Germany’.
Gousto
Recipe box delivery service Gousto became a unicorn in November last year after raising £25million in a new funding round.
The new investment came from existing partners Perwyn and BGF, and pushed the business past the £1billion mark to gain the prestigious status.
It was founded in 2012 and doubled its monthly meal deliveries from 2.5million to five million over lockdown, as many were forced to stay at home and could not get to supermarkets, or access their delivery services.
The ‘nation’s PE teacher’ Joe Wicks is an investor.
Chief executive and founder, Timo Boldt, said at the time: ‘Achieving tech unicorn status and joining the ranks of those elite companies that have attained a billion dollar valuation is a proud moment for the entire Gousto team and all of our shareholders but we are still only just getting started.
‘The market opportunity ahead of us is vast, as changes in consumer behaviour drive permanent change through the entire grocery market.’
Cazoo: The online car company sponsors football teams Aston Villa and Everton in the Premier League this season
Cazoo
Cazoo launched at the end of 2019, and achieved unicorn status by June 2020, making it the fasted British business ever to reach unicorn status.
It was founded by serial entrepreneur Alex Chesterman and allows customers to purchase a used car entirely online and have it delivered to their door in as little as 72 hours.
The funding round which helped it bag the acclaimed title last year saw Draper Esprit join existing investors DMG Ventures, General Catalyst among others.
Chesterman said: ‘We have an amazing team who are dedicated to reinventing the used car buying experience by providing the best selection, value, quality, and convenience for UK car buyers.
‘Despite the current challenges many businesses are facing, Britain remains a market leader for talent and innovation and a great place to start a business.’