Spotting Future Unicorns - Predicting Startup Success using GlobalData's AI Model

Spotting Future Unicorns - Predicting Startup Success using GlobalData's AI Model

Summary

GlobalData's report Spotting Future Unicorns - Predicting Startup Success using GlobalData's AI Model analyzes the established unicorns and maps them against the predicted unicorns using GlobalData's AI model. As of December 2022, GlobalData using its proprietary Machine Learning (ML) model predicted 3600+ startups to be potential unicorns. 2022 sees a significant slowdown in unicorn creation, a decline of ~65% compared to 2021. Out of 264 Startups that turned Unicorns in 2022, 118 Startups were correctly predicted by GlobalData's ML Model.

Key Highlights

GlobalData's report on Spotting Future Unicorns in 2022: Predicting Startup Success Using GlobalData’s AI Model majorly covers existing unicorns, predicting future unicorns by combining startup scorecard and machine learning model, investments trends in startups over the years.

Scope

• Based on GlobalData’s proprietary ranking of 20,000 top startups, startups globally are shortlisted for each sector/theme, of which startups are then predicted to become future unicorns based on GlobalData’s proprietary Machine Learning Model. Critical sectors in the startup universe include TMT (56% predicted unicorns vs. 58% established unicorns), Financial Services (12% predicted unicorns vs. 13% established unicorns), Pharmaceuticals and Healthcare (9% predicted unicorns vs. 2% established unicorns), and Retailing (3% predicted unicorns vs. 5% established unicorns), followed by other sectors.

• GlobalData's Potential Unicorns list offers early predictive intelligence and enables clients to spot tomorrow's winners today. The model identifies venture-funded companies that have the potential to become unicorns (a valuation of at least $1 billion) driven by GlobalData's proprietary machine learning algorithm which decodes millions of interactions between key deal attributes. The report presents the unicorn ecosystem spanning across sectors, it highlights a spike in unicorn births from 2020 to 2021, 2022 registering a slowdown in unicorn creation. A total of 264 unicorns were created in 2022, a decline of ~65% compared to 2021.