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In today’s …
03. July 2025
Decade Of Explosive Growth Ends: Venture Capital Fueled Unicorn Surge Continues
The Evolution of Venture Capital and Startups Over the Past 10 Years
Over the past decade, venture capital dollars and market enthusiasm have flowed into startups in a way that has been unprecedented. The rise of unicorns – private companies valued at $1 billion or more – has been a key indicator of where this investment is going.
What began as a trickle in the early 2010s surged into a flood in 2021, with new unicorns joining the board at a record pace. This was driven by the COVID-19 pandemic, which led to a surge in remote work and entrepreneurship. The boom year of 2021 saw a record stream of companies go public, and many more were valued at $1 billion or more.
Today, the Crunchbase Unicorn Board hosts over 1,500 companies, collectively valued at $6 trillion. However, not all exits have kept pace with this growth. Many unicorns remain private, with some still not having raised a disclosed valuation in over three years.
To gain insight into the evolution of the unicorn board, we separated out cohorts from 2020 and earlier, the COVID-19 pandemic’s impact on entrepreneurship, and the slowdown since 2023. The 2020 and earlier cohorts have the highest exit proportion and currently represent the majority of the board’s value. These companies have had more time to grow their business and make exits, benefiting from the boom year of 2021.
Companies like SpaceX, OpenAI, ByteDance, Shein, Stripe, and Databricks are part of this cohort, with many of them being among the top-valued companies on the board. The rapid rise in 2021 saw a massive increase in new unicorns joining the board in a short period of time, collectively valued at $2 trillion.
The most highly valued company in this cohort is Anthropic, valued at $61.5 billion. However, the slowdown since 2023 has seen a slower pace of new unicorn creation, but still, many companies are joining the board. Companies that have joined the board since 2023 match annual counts of earlier years, with around 100-plus companies per annum.
The Crunchbase Unicorn Board is close to reaching 1,600 companies, approaching $6 trillion in value, with $1 trillion in funding raised. Only a small count of companies have dropped off the board through a lowered valuation or closure – around 40 since 2022.
Furthermore, as of June 2025, over 60% of companies on the board have not raised funding with a disclosed value in more than three years. While funds have downgraded valuations internally, they are still looking for returns. In a more uncertain global market and with a slow pace of exits, the board is poised to keep growing.
The unicorn board’s growth has been influenced by various factors, including changes in venture capital strategies and the rise of megafunds. These trends suggest that the evolution of venture capital and startups will continue to be shaped by technological advancements and shifting market conditions.
The future of the unicorn board remains uncertain, with many questions still unanswered. Will new unicorns emerge in the coming years, or will the growth slow down? Only time will tell, but one thing is clear: the evolution of venture capital and startups over the past decade has been a remarkable journey, and it will be interesting to see what the next chapter holds.
In recent years, seed funding has become increasingly important for startup growth. With venture capital dollars flowing into startups in unprecedented amounts, many companies have received significant investment early on. This trend suggests that the role of seed funding will continue to grow in the coming years.
Another key trend is the rise of megafunds. These funds have become increasingly popular among private equity firms and venture capital investors, with many firms using them to invest in startups. The growth of megafunds has changed the game for startup investing, providing companies with access to larger sums of money than ever before.
The impact of these trends on startups will be significant, and it will be interesting to see how they shape the future of entrepreneurship and innovation. As the unicorn board continues to grow, one thing is clear: the evolution of venture capital and startups over the past decade has been a remarkable journey, and it will be exciting to see what the next chapter holds.
In conclusion, the evolution of venture capital and startups over the past decade has been marked by unprecedented growth and change. The rise of unicorns, changes in venture capital strategies, and the emergence of megafunds have all played a role in shaping this landscape. As we look to the future, it is clear that these trends will continue to influence the startup ecosystem, providing companies with access to new resources and opportunities for growth.