Nearly 1 in 2 new unicorns is an AI company

The unicorn club—startups valued at over US $1 billion—has reached 1,249 members worldwide, but new entrants are becoming increasingly rare. Just 24 companies joined the ranks in Q3 2024, compared to over 100 per quarter during 2021’s funding peak.

Amid this slowdown, AI startups have emerged as the standout sector, representing 44% of all new unicorns in 2024—a sevenfold increase in their share over the past decade.

These companies are scaling rapidly, achieving unicorn status in a median of just 2 years compared to 9 years for non-AI peers, driven by advancements in fields like robotics and generative AI.

Valuations are under pressure, with over a third of unicorns not having raised capital since 2021. More than 100 hover at the US $1 billion threshold, making them vulnerable to down rounds or attractive targets for cash-rich incumbents.

Exit activity provides a silver lining. Over 110 unicorns show IPO probabilities above 20%, while 25 are poised for acquisition, signaling potential opportunities for corporations looking to expand their market reach.