In conjunction with Orange Silicon Valley's "The Unicorn Report" (http://www.theunicornreport.com), we have compiled a presentation to further explain our findings that have been illustrated in the report. We elaborate on tech company lifecycles, adjacencies, and how it all plays out by 2020.

4. We looked at a set of 60 technology Unicorns with a total
valuation of over $230 billion.
*as of April 10, 2014

5. The number of billion-dollar startups increased 67% from 2012 to
2013.
Key
Findings

6. The number of billion-dollar startups increased 67% from 2012 to
2013.
47% of Unicorns are pre-IPO, with a total market cap of over $80
billion.
Key
Findings

7. The number of billion-dollar startups increased 67% from 2012 to
2013.
47% of Unicorns are pre-IPO, with a total market cap of over $80
billion.
Corporate acquisitions totaled $36 billion.
Key
Findings

8. The number of billion-dollar startups increased 67% from 2012 to
2013.
47% of Unicorns are pre-IPO, with a total market cap of over $80
billion.
Corporate acquisitions totaled $36 billion.
Unicorns are a new class of market actor, shaping the
competitive landscape in areas that are adjacent to or completely
different from the dominant incumbents.
Key
Findings

9. For Incumbents, Unicorns seem to move very quickly from
meaningless to disruptive.
But for wealthy Giants, Unicorns represent great opportunities.

10. $32.5B – The amount that
carriers lost to messaging
services from texting fees, in
2013.
$54B – The amount they are
projected to lose in 2016.
*Ovum Limited
For Incumbents, Unicorns seem to move very quickly from
meaningless to disruptive.
But for wealthy Giants, Unicorns represent great opportunities.

11. $32.5B – The amount that
carriers lost to messaging
services from texting fees, in
2013.
$54B – The amount they are
projected to lose in 2016.
*Ovum Limited
For Incumbents, Unicorns seem to move very quickly from
meaningless to disruptive.
But for wealthy Giants, Unicorns represent great opportunities.

12. There is a shift in the lifecycle of new technology companies…

13. There is a shift in the lifecycle of new technology companies…
A note on valuations…

14. There is a shift in the lifecycle of new technology companies…

15. There is a shift in the lifecycle of new technology companies…
The pre-IPO phase is getting longer.

16. There is a shift in the lifecycle of new technology companies…
The pre-IPO phase is getting longer.
Private capital is funding growth without market review.

17. There is a shift in the lifecycle of new technology companies…
The pre-IPO phase is getting longer.
Private capital is funding growth without market review.
Private investors are out-spending corporate M&A by 2:1.

18. There is a shift in the lifecycle of new technology companies…
The pre-IPO phase is getting longer.
Private capital is funding growth without market review.
Private investors are out-spending corporate M&A by 2:1.
The largest profits are privatized, and book-keeping is opaque.

19. There is a shift in the lifecycle of new technology companies…
“In the last 15 years the number of public companies in the US
has dropped from 8800 to 4200. So what’s happening is the
public market is collapsing.” – Marc Andreesen

20. And yet, Unicorns are incredibly valuable to web-native Giants.

21. And yet, Unicorns are incredibly valuable to web-native Giants.
The 30 top public tech companies have ~$180B of cash but can
also leverage the value of their stock to gain purchase power.

22. And yet, Unicorns are incredibly valuable to web-native Giants.
The 30 top public tech companies have ~$180B of cash but can
also leverage the value of their stock to gain purchase power.
Incredibly high-profile acquisitions – WhatsApp $19B, Nest $3B,
Oculus $2B, Airwatch $1.5B, Waze $1.1B, Instagram $1B…

23. And yet, Unicorns are incredibly valuable to web-native Giants.
The 30 top public tech companies have ~$180B of cash but can
also leverage the value of their stock to gain purchase power.
Incredibly high-profile acquisitions – WhatsApp $19B, Nest $3B,
Oculus $2B, Airwatch $1.5B, Waze $1.1B, Instagram $1B…
These acquisitions buy growth, audiences, and a share in
adjacent markets.

24. Adjacencies are opportunities that sit outside of the current focus
of the core business. They include some of the most interesting
and valuable markets.

25. Adjacencies are opportunities that sit outside of the current focus
of the core business. They include some of the most interesting
and valuable markets.
Google’s acquisition of Nest.

26. Adjacencies are opportunities that sit outside of the current focus
of the core business. They include some of the most interesting
and valuable markets.
Google’s acquisition of Nest.
Facebook’s purchase of WhatsApp.

27. Adjacencies are opportunities that sit outside of the current focus
of the core business. They include some of the most interesting
and valuable markets.
Google’s acquisition of Nest.
By their very nature, Unicorns exist in
adjacencies.
Facebook’s purchase of WhatsApp.

28. Adjacencies are opportunities that sit outside of the current focus
of the core business. They include some of the most interesting
and valuable markets.
Google’s acquisition of Nest.
By their very nature, Unicorns exist in
adjacencies.
And web Giants seem to know how to use them.
Facebook’s purchase of WhatsApp.

29. 29 FranceTelecom -Orange restricted
Valuation of tech Unicorns
by sector
*as of April 10, 2014

30. 30 FranceTelecom -Orange restricted
Valuation of tech Unicorns
by sector
*as of April 10, 2014
Yelp $4.8B IPO
Groupon $4.0B IPO
Uber $3.5B -> $17B
private company!

31. 31 FranceTelecom -Orange restricted
Valuation of tech Unicorns
by sector
*as of April 10, 2014
LinkedIn $20B IPO
ServiceNow $7.2B IPO
Yelp $4.8B IPO
Groupon $4.0B IPO
Uber $3.5B -> $17B
private company!

32. 32 FranceTelecom -Orange restricted
Valuation of tech Unicorns
by sector
*as of April 10, 2014
Palantir $9B Private
Splunk $7.7B IPO
Nest $3.2 M&A
Yelp $4.8B IPO
Groupon $4.0B IPO
Uber $3.5B -> $17B
private company!LinkedIn $20B IPO
ServiceNow $7.2B IPO

33. What is the rationale behind these valuations?

34. For the most part, they align with deep trends and
emerging market adjacencies.
What is the rationale behind these valuations?

35. Travel, consumer goods, payments.
Some challenge legacy regulatory environments.
Attacking weaknesses in incumbent models.
Empowering sellers and buyers.
eCOMMERCE $48.2B

36. ENTERPRISE $46.6B
“The entire enterprise software stack is getting reinvented right
now, and there’s a trillion dollars up for grabs.”
- Roger Lee, partner at Battery Ventures.

37. Collaboration, security, and talent acquisition.
Reconfiguring and unbundling enterprise IT.
Many have already gone into public exits. Most are older.
ENTERPRISE $46.6B

38. Organizing data and extracting meaning.
Most are enterprise-facing, except Nest and Waze.
49% of market value in this sector has already gone IPO.
Waiting for an AI/machine learning Unicorn.
BIG DATA $40.7B

39. Storage, network intelligence, security.
Steady migration of sw & hw into the cloud.
Unicorn potential for turn-key solutions that assist cloud deployment .
Cloud and networks are becoming more flexible and adaptive.
CLOUD $34B

40. Facebook and Twitter ecosystems.
New Unicorns will leverage machine learning to draw insights from their data.
Social graphs will migrate into wearables and the emerging Internet of
Things. We can expect significant M&A activity in this area.
SOCIAL $30.3B
This sector is exposed to disruption by other geographies.

41. Content, communication… and device management.
Changing behaviors in messaging.
Proliferation of devices on enterprise networks.
Future mobile Unicorns might be expected to appear in mHealth and
wearables.
MOBILE $23.3B

42. Streaming, capture, and immersion.
Major incumbents and web Giants like Netflix constrain younger players.
GoPro and Oculus drive bandwidth to serve highly immersive, rich media
experiences.
Opportunities for gaming?
MEDIA $10.2B

43. Mapping adjacencies in 2020:
where the next wave of
Unicorns will likely play.

44. Ubiquitous computation
Hardware proliferation
Virtualization
Communication
Identity
Context and predictive
Mapping adjacencies in 2020:
where the next wave of
Unicorns will likely play.

45. http://theunicornreport.com