A select group of startups valued at $5 billion or more, referred to as ultra-unicorns, gains significant traction in the private equity market despite declining funding for early-stage companies. This cohort contributes over half of the total private equity value, with 17 new entrants in the first half of 2025, including Thinking Machines Lab, Glean, and Abridge. Ultra-unicorns represent about 13% of overall unicorns but account for $3.5 trillion of the total $6 trillion valuation and half of the $1 trillion funding for all unicorns. The funding landscape peaked at $102 billion in 2021, declined to $41 billion in 2022, and rebounded to approximately $79 billion in 2025, largely driven by massive investments in OpenAI and Scale AI. Most companies in this group were founded between 2011 and 2018, with the United States leading in ultra-unicorns, followed by China, India, and the United Kingdom. Recent valuations primarily occurred during 2021 and 2022, raising questions about sustainability. As of 2025, five companies have exited the unicorn status through public offerings or acquisitions, indicating ongoing growth and a positive outlook for the ultra-unicorn category.
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