Contact us!
Have a question? Contact us!
I agree the Terms of Service
EURASIA DEVELOPMENT LTD.
15 Chinese Startups That Became Unicorns in 2017
October 12, 2017
Since the beginning of 2017, 41 companies worldwide have achieved “unicorn” status. According to CB Insights, 15 new unicorns were created in China. By comparison, only five appeared in Europe.
The United States still ranks first with 17 companies. The US has dominated the global startup landscape. At the time of publication, there were 215 unicorns worldwide, 107 of which were from the United States. Most were registered in California.
But China is gradually catching up with the leader. In 2014, the country had only eight unicorns; now it has 56. Europe has 23. Most Chinese unicorns operate in e-commerce and online marketplaces. CB Insights technology analyst William Altman says: “Unicorn valuations depend on the growth of the middle class, which is increasingly buying goods online and using online services.”
The dominance of Alibaba, Baidu and Tencent in the Chinese market is difficult to overstate. “The increase in investment activity in local unicorns has a positive impact on company valuations, which in turn guarantees larger investments,” Altman says.
The United States still ranks first with 17 companies. The US has dominated the global startup landscape. At the time of publication, there were 215 unicorns worldwide, 107 of which were from the United States. Most were registered in California.
But China is gradually catching up with the leader. In 2014, the country had only eight unicorns; now it has 56. Europe has 23. Most Chinese unicorns operate in e-commerce and online marketplaces. CB Insights technology analyst William Altman says: “Unicorn valuations depend on the growth of the middle class, which is increasingly buying goods online and using online services.”
The dominance of Alibaba, Baidu and Tencent in the Chinese market is difficult to overstate. “The increase in investment activity in local unicorns has a positive impact on company valuations, which in turn guarantees larger investments,” Altman says.
China is gradually catching up with the leader. In 2014, the country had only eight unicorns; now it has 56. Europe has 23.
Stockholm School of Economics economist Tina Sanandaji believes: “While entrepreneurship in Europe is stagnating, China continues to remain wealthy, technologically advanced and capable of attracting capital on a massive scale. It is entirely possible that entrepreneurship in China will continue to develop at a rapid pace.”
Below is a list of Chinese companies that became unicorns in 2017. The data is based on CB Insights research.
The Beijing-based company offers one-on-one video English lessons to Chinese children aged 5 to 12. The platform’s teachers are from North America. VIPKid raised funding from eight venture capital investors, six based in China and two in Los Angeles. The company was valued at USD 1.5 billion in August 2017.
The company develops brain-like processor chips designed to imitate human nerve cells and synapses for deep learning. On August 18, the Beijing startup was valued at USD 1 billion. It had six investors, including the Alibaba Entrepreneurs Fund.
e-Shang Redwood Group was formed through the merger of e-Shang Cayman and Redwood Group Asia. The Shanghai-based real estate startup was valued at USD 2.8 billion on July 26, 2017. Its investors included China Minsheng Banking Corp, Huarong Rongde and Shanghai Pudong Development Bank. The company was founded in 2011 by US private equity firm Warburg Pincus.
This startup operates in artificial intelligence (AI), providing facial, text and vehicle recognition services to mobile internet companies, financial institutions and insurance firms. The company was founded in Beijing in 2015 and joined the unicorn club on July 11, 2017. Its valuation was USD 1.47 billion. SenseTime had 19 investors, including Star VC, IDG Capital and Infore Capital. All were based in China or Hong Kong.
The Shanghai-based e-commerce startup trades steel. Founded by Dong Wang in 2012, it was valued at USD 1 billion on June 29, 2017. Its investors included K2 Ventures, Matrix Partners China and IDG Capital.
The Shanghai-based company allows customers to rent bicycles for their trips through a mobile app. The startup had 16 investors from China, Germany and the United States. Mobike was founded in 2015 by Hu Weiwei and was valued at USD 3 billion on June 16, 2017.
DT Dream is an internet company specializing in cloud computing and Big Data analytics. The company was founded in Hangzhou in 2015. It was valued at USD 1 billion on June 8, 2017. Its investors included Alibaba Group, China Everbright Investment Management and Yinxinggu Capital.
The education startup, previously known as Yuantiku and operated by Fenbi Technology, offers students mobile-based test and exam preparation services. The company was founded in 2012 by Yong Li. Warburg Pincus was among its investors. Yuanfudao received a USD 1 billion valuation on May 31, 2017.
A fintech startup built around the P2P lending website Tuandai.com. It was valued at USD 1.4 billion on May 30, 2017. Its investors included Beihai Hongtai Investment, China Minsheng Investment and Yisheng Innovation.
Also known as Headlines Today or Toutiao, it is a mobile news application that analyzes users’ preferences and social media data to provide personalized content. The company was founded in Beijing in 2012 and was valued at USD 11 billion. It had five investors from China, including Sequoia Capital China, SIG Asia Investments and Sina Weibo, as well as one investor from Russia, Yuri Milner.
Also known as NextEV, the startup develops smart and autonomous electric vehicles. It was founded in Beijing in 2014 by William Li and was valued at USD 2.89 billion. The startup had 24 investors, predominantly Chinese.
A Beijing-based bicycle rental startup. Users can scan a QR code with a smartphone to unlock a bicycle, enter their destination and pay for the service through the Ofo app. The company was founded by Dai Wei in 2014 and received a USD 1 billion valuation in March 2017. It had 18 investors, including Chinese giants Alibaba and Didi Chuxing.
A real estate startup that rents shared office space to small businesses and individual entrepreneurs. It was founded by Mao Daqing in Beijing in 2015 and received a USD 1.3 billion valuation in January 2017. The company had 18 investors, including Ant Financial Services Group, Dahong Group and Sequoia Capital China.
An online search platform that uses a voting system to identify the best answer. The company was founded in 2012. It had six investors, including Tencent Holdings, Sinovation Ventures and Qiming Venture Partners. Zhihu received a USD 1 billion valuation on January 12, 2017.
Below is a list of Chinese companies that became unicorns in 2017. The data is based on CB Insights research.
The Beijing-based company offers one-on-one video English lessons to Chinese children aged 5 to 12. The platform’s teachers are from North America. VIPKid raised funding from eight venture capital investors, six based in China and two in Los Angeles. The company was valued at USD 1.5 billion in August 2017.
The company develops brain-like processor chips designed to imitate human nerve cells and synapses for deep learning. On August 18, the Beijing startup was valued at USD 1 billion. It had six investors, including the Alibaba Entrepreneurs Fund.
e-Shang Redwood Group was formed through the merger of e-Shang Cayman and Redwood Group Asia. The Shanghai-based real estate startup was valued at USD 2.8 billion on July 26, 2017. Its investors included China Minsheng Banking Corp, Huarong Rongde and Shanghai Pudong Development Bank. The company was founded in 2011 by US private equity firm Warburg Pincus.
This startup operates in artificial intelligence (AI), providing facial, text and vehicle recognition services to mobile internet companies, financial institutions and insurance firms. The company was founded in Beijing in 2015 and joined the unicorn club on July 11, 2017. Its valuation was USD 1.47 billion. SenseTime had 19 investors, including Star VC, IDG Capital and Infore Capital. All were based in China or Hong Kong.
The Shanghai-based e-commerce startup trades steel. Founded by Dong Wang in 2012, it was valued at USD 1 billion on June 29, 2017. Its investors included K2 Ventures, Matrix Partners China and IDG Capital.
The Shanghai-based company allows customers to rent bicycles for their trips through a mobile app. The startup had 16 investors from China, Germany and the United States. Mobike was founded in 2015 by Hu Weiwei and was valued at USD 3 billion on June 16, 2017.
DT Dream is an internet company specializing in cloud computing and Big Data analytics. The company was founded in Hangzhou in 2015. It was valued at USD 1 billion on June 8, 2017. Its investors included Alibaba Group, China Everbright Investment Management and Yinxinggu Capital.
The education startup, previously known as Yuantiku and operated by Fenbi Technology, offers students mobile-based test and exam preparation services. The company was founded in 2012 by Yong Li. Warburg Pincus was among its investors. Yuanfudao received a USD 1 billion valuation on May 31, 2017.
A fintech startup built around the P2P lending website Tuandai.com. It was valued at USD 1.4 billion on May 30, 2017. Its investors included Beihai Hongtai Investment, China Minsheng Investment and Yisheng Innovation.
- NetEase Cloud Music
Also known as Headlines Today or Toutiao, it is a mobile news application that analyzes users’ preferences and social media data to provide personalized content. The company was founded in Beijing in 2012 and was valued at USD 11 billion. It had five investors from China, including Sequoia Capital China, SIG Asia Investments and Sina Weibo, as well as one investor from Russia, Yuri Milner.
Also known as NextEV, the startup develops smart and autonomous electric vehicles. It was founded in Beijing in 2014 by William Li and was valued at USD 2.89 billion. The startup had 24 investors, predominantly Chinese.
A Beijing-based bicycle rental startup. Users can scan a QR code with a smartphone to unlock a bicycle, enter their destination and pay for the service through the Ofo app. The company was founded by Dai Wei in 2014 and received a USD 1 billion valuation in March 2017. It had 18 investors, including Chinese giants Alibaba and Didi Chuxing.
A real estate startup that rents shared office space to small businesses and individual entrepreneurs. It was founded by Mao Daqing in Beijing in 2015 and received a USD 1.3 billion valuation in January 2017. The company had 18 investors, including Ant Financial Services Group, Dahong Group and Sequoia Capital China.
An online search platform that uses a voting system to identify the best answer. The company was founded in 2012. It had six investors, including Tencent Holdings, Sinovation Ventures and Qiming Venture Partners. Zhihu received a USD 1 billion valuation on January 12, 2017.
Our Clients
Research | Technology Transfer | China | Scouting | LP in China
Research | Technology Transfer | China | Scouting | LP in China
