‘Must buy’ Unicorns that Came from Nowhere
‘Unicorn’ companies – those valued at more than $1bn – are often some of the most attractive to investors. The reasons for this should be obvious! However, what’s fascinating is that many unicorns have emerged as financial powerhouses from out of nowhere.
There are plenty of benefits to investing in unicorns. After all, they are ‘safe’ bets for many traders looking to get a bite of the juiciest apples on the market. Before looking into how to buy Tesla shares on your own, here are a few unicorns that are quietly building up promise elsewhere.
Canva, an Australian software company, has revolutionized photoshop on-the-go and in-the-cloud in a very short space of time. What’s more, the company is now worth a staggering $40bn.
The app’s rise to prominence came not long after its initial debut. Emerging in 2012, Canva started picking up interest the year after thanks to a listing from Fast Company. By 2015, the service had live apps for both Android and iOS, and a firm home in San Francisco.
Since then, Canva’s operated an annual subscription service for visual media creation, ideal for social media marketing and print media alike. Demand is unlikely to shrink, so investing is likely to be a safe bet.
Amid ongoing volatility and uncertainty surrounding cryptocurrencies and blockchain assets, apps and platforms for handling digital assets have continued to grow in popularity. Talos, a New York firm offering crypto trading services, just went unicorn in 2022.
What’s most staggering about Talos’ success is that the company has only been active since 2018. It’s raised $145m since inception, meaning much of its unicorn valuation comes from intrinsic worth. Largely popular in the US and the UK, Talos already picks up more than 16,000 visitors each month worldwide.
Epic certainly hasn’t come out of ‘nowhere’ exactly, but their rise to unicorn status may have been a surprise to many from their humble beginnings. Starting out as Potomac Computer Systems in 1991, it was with their development of the popular Unreal Engine, used for video games such as the Gears of War series, that helped to propel the games studio into the stratosphere.
However, it was arguably their launch of runaway online hit Fortnite Battle Royale in 2017 that helped to establish Epic as a monster success story. Following up with Fall Guys as a cross-console hit a few years later, Epic has managed to rack up a valuation of over $29bn. The company has raised $4.4bn otherwise, without consumer sales.
Are all unicorns worth investing in?
In many cases, unicorns are certainly worth our time and money. After all, they’ve gotten to where they are on the back of mass public appeal and genuine innovation. Of course, not all unicorns are guaranteed to continue thriving in the face of changing public opinion, but a valuation of $1bn is unbeatable when it comes to initial confidence.
Trust your gut when it comes to managing your investments. And, as always, it’s worth keeping an eye on both the markets and public opinion – who’s to say what will happen to some of our best-loved unicorns?