Text by Pyr Marcondes, Senior Partner at Pipeline Capital Tech.
The value of companies fluctuates depending on numerous factors: technological differential and degree of innovation, sustainable and scalable growth potential, market with greater or lesser potential for expansion, economic moment, the entrepreneurs and investors involved, and so on.
We live in a moment of uncertainty and expectations due to global economic instability, rising inflation internationally, the war, and so on.
In such a scenario, the tendency is for investment markets, M&A, startups, entrepreneurship to suffer from this.
However, a key performance indicator of this industry, the Crunch Base Unicorn Board, points in the opposite direction.
The indicator gathers the movement of new nascent unicorns in the international economy and last month the world gave birth to no less than 35 new unicorns. Full maternity. Financial vets running to and fro.
Collectively, they added $57 billion in value to the Board and $10 billion in raised equity funding.
But a single company already on the Board added nearly twice that much – $100 billion – in value to the index alone. Shein, a Chinese fast fashion company, raised between $1 billion and $2 billion in funding at a $100 billion valuation, making it the third most valuable in Crunch Base’s survey.
It is now worth the same as Elon Musk’s space exploration company SpaceX, which is also valued at around $100 billion. And it went on to be worth more than one of the darlings of fintech investors, Stripe, valued at $95 billion.
I have been insisting on one point about this global economic backlash: it undoubtedly affects investments internationally. Investors become cautious, the pace of transactions decreases, the value of shares and the size of contributions tend to fall. However, we are a long way from being experiencing a crisis and this is a sector of opportunities. Whoever has a bullet in the needle and a dash of daring continues to take advantage of what may not be a moment of retraction, but of acceleration.
Buy low. High sale. I swear I didn’t create that rule.