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E-commerce and Media Sectors are the Most Profitable to Create a Startup

New research by SmallBusinessPrices.co.uk, shows insight into the growing startup industry, focusing on unicorn businesses which are startups valued at $1 billion.

Which Sectors are The Most Profitable?

  1. Science – With companies attempting to solve problems of the world, science startups tend to receive large investments to help bolster their success. SpaceX, an aerospace transportation manufacturer takes top spot with a valuation of $21.5 billion. The average valuation in the industry is around $5.4 billion, making it the highest average compared to all sectors.
  2. AI/Robots/AR/VR – With growing interest around AI/Robots/AR/VR, this sector sees the second highest average valuation of $4.49 billion. The most profitable business is Toutiao (Bytedance), a Chinese information recommendation engine which is worth $20 billion.
  3. Entertainment/E-commerce/Media – With Uber making profits of up to $68 billion, it is the only sector to have a maximum valuation of over $25 billion. There’s an opportunity to make a serious amount of money with the average valuation for this sector being $4.4 billion. Airbnb is also one of the most notable companies in the sector with a value of $29.3 billion.

What Are Newnicorns?

Unicorn businesses are a startup with a valuation of $1 billion, and with more companies joining the list each year SmallBusinessPrices.co.uk have coined the term ‘Newnicorn’ which are new entries on the 2018 list.

Newnicorns Around the World

This year, the Hall of Fame saw 24 new entries to the growing unicorn list with a combined value of $48.3 billion.

Here are the rankings for  the three best performing countries that featured on the list:

  1. China – World market leaders, China, had ten entries on the 2018 list, with a combined value of $30.8 billion combined. It was also home to the highest valued unicorn startup, Bitmain Technologies which is worth $12 billion.
  2. United States – The U.S. had nine entries on the list this year with a combined valuation of $10.8 billion. Despite a $20 billion difference between China, the United States is home to a number of established unicorn startups such as Airbnb, Lyft, Pinterest, and Uber.
  3. Brazil – Like Australia, Israel, Portugal, and the United Kingdom, Brazil had only one entry on this year’s list, however, Nubank made the country the next most profitable with a valuation of $2 billion.

Ian Wright from SmallBusinessPrices.co.uk stated: “Across all sectors, there is vast competition in the startup industry with companies and investors having to take big risks to be successful. Combining historical data with the 2018 startup landscape gives a good insight into the world of Unicorn business.”

(Source: smallbusinessprices.co.uk)

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