In the heady days of the 1980s, companies would go public five or six years after being founded. Today it takes 12 years.
The 1980s also coincide with the birth of private equity and venture capitalist firms. The amount of private capital chasing efficient startups is at unprecedented levels, and valuations are rising quickly.
When companies get listed on the stock markets, it is mostly to provide an exit for private market investors. The majority of company growth occurs while they are still private. We invest in startups when they're young enough to be private but mature enough to have acquired a billion-dollar valuation.
More than 35 public software companies were valued at more than $10 billion between 2004 and 2015. One in every six of these companies was already valued above $10 billion while being privately held. One of them was Facebook, now Meta. Imagine being at the same table as Peter Thiel and enjoying the rapid growth of Facebook in its early days.
This money will not only create more unicorns, but also transform the unicorns of today into decacorn ($10 billion+ valuation). Value creation by startups is only going to increase in the coming years.
Robinhood is a zero-commission stock and crypto trading platform. It went public in August 2021 after raising $1.7 billion from top venture capitalists.
In the early days of the internet, Amazon was not the first marketplace, but it was the fastest, and the cheapest.
At the dawn of blockchain technology, Opensea is the fastest, cheapest, and first.
SpaceX designs, manufactures and launches advanced rockets and spacecraft. The company has launched Starlink, a broadband internet system which we believe will be a $50 billion company on its own in a few years.
This is one half of a duopoly in the Indian food delivery market. Investors in the other half, Zomato, had a spectacular exit via IPO while Swiggy owns larger market share, shorter delivery times and better feedback from users.
The developer of a freight forwarding platform designed to provide visibility and control over the entire supply chain. The company's platform arranges goods to be transported and subsequently tracks the inventory in real-time through orders carried by the ocean, air, and road freight, enabling logistics companies to optimize transportation routes and inventory management.
The manufacturer of supercharged car batteries aimed to improve energy storage. The company's batteries can be used in small, light and long-lasting electronic devices, enabling mass adoption of affordable and long-range electric vehicles, and giving users access to batteries that are more effective than lithium-ion technology.