Beijing Finds Huge Boom in Unicorns with Accumulated Valuation over CNY 3 Trillion

Financials Author: Yifei Liu Editor: Yiru Qian Jul 05, 2022 06:31 PM (GMT+8)

Silicon Valley is the world's most attractive location for start-ups, with Beijing trying for second place.

Zhongguancun Software Park Feizhou square

Beijing had 92 unicorns in 2021, top in China and second in the world, with an accumulated valuation of over CNY 3 trillion (USD 448.2 billion), according to Zhongguancun Science City Unicorn Enterprise Sustainability Report (2022).

San Francisco continued to lead the ranking in terms of the number of start-ups valued at more than USD 1 billion.

E-commerce, artificial intelligence, health technology, software services, and enterprise services dominated, accounting for nearly 60%. 

Among them, unicorns involved with aerospace and artificial intelligence took up 50% and 40%, respectively; while almost all unicorns in the education technology sector were lost due to the "double-reduction" policy.

Given the development of China's macroeconomic policies during 2016 to 2020, unicorns also show apparent changes along with several distinct characteristics.

First, the track needs to be in line with the overall policy orientation of the country, and a larger industry volume plus a relatively high industry ceiling would be preferred.

Secondly, the investment in science and technology innovation needs to be constantly increased, and the R&D should be forward-looking and adapt to the market needs. 

Thirdly, a reasonable business model to assist the commercialization of its advantages accumulated in science and technology innovation is required for sustainable growth.

Finally, a unicorn should improve the management and operation capability in advance to ensure the steady development.