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Unicorns with humps
ENAR

by Matt Nash

When venture capitalist Aileen Lee first employed the term “unicorn” to refer to startups valued at or above $1 billion, she intended to stress just how uncommon a creature she was describing. In a November 2013 post that spawned a Forbes list, Lee identified and analyzed 39 “US-based tech companies started since January 2003 and most recently valued at $1 billion by private or public markets.” While her lens was US-focused, that was fewer than four unicorns born per year, on average, during the 10 years under study. Even if she missed some in the wider world, the beasts have undeniably been breeding like rabbits since she named them. The tech and entrepreneurship news website CrunchBase’s unicorn roll included 229 of the horned wonders as of May 23 (more than five times the number Lee found when she went hunting less than four years ago). At the moment, taxi-hailing app

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1 comment

Y. Khoury June 14, 2017 - 5:31 PM

Thank you for this insightful analysis Matt!

Magnitt is doing a nice job in “tweetable” research: Numbers + nice design for mass consumption.

This has its benefits and disadvantages, e.g. this style is becoming popular (as rightly pointed out) and considers the short attention span in times of information overflow. One disadvantage is the fact that their data is flawed, because it relies on their own database which is strong on early stage and Dubai-based companies.

Kindly note there are reports by both ArabNet (http://intelligence.arabnet.me ) & Wamda (https://www.wamda.com/research ) that strike a fair balance between graphs and text. They also come with a proper Methodology section and Executive Summary. They include reports on investment and ecosystem growth, but lack global benchmarks and a more critical / realistic assessment of societal and political factors that keep the ecosystem behind its peers in Southeast Asia and India. Still, aside from the fact that ArabNet & Wamda have a poor media/ PR strategy, to my knowledge their reports are the best available to date.

Best,
Y. K.

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