Among them, unicorns in the field of science and technology ranked the top five in valuation, namely, taxi service company Uber, shared office space WeWork, electronic cigarette company Juul Labs, housing rental platform Airbnb and financial technology company Stripe.
Ten new companies, including Casper, a mattress startup, and Glossier, a cosmetics company, were among the unicorns in the first quarter at a valuation of more than $1 billion.
Top Five Unicorn Enterprises in the U.S. Market
Data show that the total market value of American unicorns reached 582.4 billion US dollars in the first quarter, a record high.
It is worth mentioning that at a time when the number of Unicorns is increasing, a number of technology companies are expected to be listed in the near future, including the housing rental platform Airbnb, taxi service company Uber and productivity tool Slack. We note that Pinterest has applied for listing earlier this year, and Uber interrelated company Lyft was listed last month. Foreign media commented that a large number of listed companies may bring the next batch of millionaires to the Bay Area.
The report also found that the frequency of listing activities declined in the first quarter. Fifteen companies made initial public offerings in the first quarter of this year, while 16 companies made initial public offerings in the fourth quarter of 2018. However, the listing activity was still growing year-on-year, with only 13 companies making initial public offerings in the first quarter of 2018.
In addition, the listing time of American private enterprises is generally ahead of schedule. The average duration of initial public offerings in the first quarter of this year is five years, which is lower than the eight years in the fourth quarter of last year.
The report shows that US venture capital increased from $22.8 billion in the first quarter of 2018 to $24.6 billion in the first quarter of 2019. Global venture capital increased from $49.4 billion in the first quarter of 2018 to $52.2 billion in the first quarter of 2019.
As expected, the San Francisco Bay Area raised the most funds in the first quarter of this year, with 236 venture capital transactions totaling $7.1 billion. New York followed with $4.5 billion, Silicon Valley ranked third with $4.3 billion, while New England and the Midwest ranked fourth and fifth with $2.8 billion and $660 million, respectively.
New England ranked third with 131 venture capitals and Silicon Valley ranked fourth with 118.
Top Five Venture Capital Trading Areas in the First Quarter of 2019
In the first quarter of 2019, the Bay Area of San Francisco surpassed Silicon Valley for the eighth consecutive quarter in terms of volume of venture capital transactions. Venture capitalists and incubators in Silicon Valley are also beginning to notice this. More and more venture capitalists are opening offices in the San Francisco Bay Area. Many well-known technology venture capitalists have even moved their headquarters to San Francisco in order to be closer to the growing group of entrepreneurs.
Currently, four of the top five Unicorn companies in the United States are headquartered in San Francisco. Two of the six largest U.S. venture capital deals in the first quarter of this year involved San Francisco-based start-ups, namely Flexport, a San Francisco Bay Area network software service company, and Nuro, an autopilot company, which received $1 billion in financing, while the latter received $940 million in single financing.
Six of the largest VCs in the U.S. market in the first quarter of 2019
However, the San Francisco Bay Area is not immune to the slowdown in the number of venture capital transactions. Since the first quarter of last year, the number of quarterly venture capital transactions has declined from the previous quarter.
Experts interpreted this trend as consistent with the overall U.S. market, with a decrease in the number of transactions, but an increase in the amount of investment, as well as in the San Francisco Bay Area. The reason may be that some VCs want to have enough money on hand to provide more mature companies, while others dont have enough time to do due diligence on new companies, so they will reinvest their money in existing companies.