97 unicorns were born in China in 2018
At + 6.6%, in 2018, China experienced the weakest GDP growth in 28 years against a backdrop of falling domestic demand and trade tensions with the United States. On the Tech side, this deceleration was particularly felt in the last quarter, where the birth of unicorns, these startups valued at more than a billion dollars, slowed down. 11 unicorns emerged in the last quarter compared to 30 in the previous quarter, as reported Bloomberg
Over the year, the world’s second largest economy still managed to bring out 97 unicorns. Thus, in 2018, a new unicorn was created every 3.8 days in China. These 97 unicorns representing a total value of 1.2 trillion yuan (or about 178 billion dollars), according to The report published by the consulting firm Hurun.
Internet services and e-commerce in the lead
The Chinese giant specialized in the manufacture of mining equipment, Bitmain, ranks first for new unicorns with a valuation of 50 billion yuan. However, the company has had an eventful year. The poor performance of cryptocurrencies strongly impacted its activities. At the end of last year, we learned that it was planning to lay off half of its employees.
In total, the report lists 186 unicorns. In terms of sectors, Internet services is the most represented, followed by e-commerce and then FinTech. MedTech and the entertainment category close the Top 5. The biggest Chinese unicorn, Ant Financial, comes from the FinTech sector, then comes Bytedance (entertainment), and Didi Chuxing.
In terms of stock market performance, “the 24 unicorns that were successfully listed in the past year have a market value of over 36% on the first day of listing”, Notes the report. This represents 70% of forecasts achieved for all unicorns listed on the stock market. For Hurun, this means that despite a certain bubble, “lmost of these unicorns create great value “.
Geographical distribution of unicorns