Because the digitisation of virtually all providers leads to quite a few enterprise alternatives, hundreds of thousands of startups mushroom yearly. Nonetheless, only some of those startups come out with flying colors. Ultimately, solely a few of these attain the standing of a ‘unicorn’ with a valuation of over £1 billion. It’s estimated that the 33,860 scaleup companies within the UK contribute £1 trillion to the UK economy on an annual foundation, which represents half of the general SME economic system. Nonetheless, the scaleups are witnessed a shortfall in funding of up to £15 billion this year, as a result of COVID-19 disaster that has left an affect on investments.
Whereas some companies have been worst hit by the pandemic, some others have managed to develop and a few closed large funding rounds to gas their ambitions. As we’re approaching the top of 2020, UKTN has provide you with a listing of stellar UK tech companies which have attained the unicorn standing this 12 months. Let’s check out how they did that!
Cazoo — quickest ever unicorn
Founder/s: Alex Chesterman
Based 12 months: 2018
London-based Cazoo, the used automobile market is without doubt one of the leaders within the trade. It’s reportedly the quickest ever British unicorn that has attained the standing by smashing all data. Going again by a couple of months, Cazoo raised £240M funding, which took its overall funding to over £450M.
The newest backers of this used automobile platform embody Common Catalyst, D1 Capital Companions and funds from Constancy Administration & Analysis Firm and Blackrock. Additionally, new and present traders together with L Catterton, The Spruce Home Partnership, Sturdy Capital Companions, Novator, Mubadala Capital and DMG Ventures additionally took half within the funding spherical. With this funding, Cazoo scored a valuation of £2 billion, this 12 months.
Cazoo makes shopping for a automobile fairly easy as shopping for some other product on-line. Patrons should purchase a used automobile fully on-line and get it delivered to their doorsteps in simply 72 hours. Additionally, there’s a 7-day a refund assure for shoppers.
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At a time when COVID-19 pandemic disaster nonetheless prevails, individuals are suggested to keep away from using public transportation for his or her on a regular basis commute. That is the place Cazoo’s consumer automobile market is disrupting the market phase. The corporate accomplished its 10,000th buyer supply simply 2 weeks forward of celebrating its first anniversary since its debut.
Alex Chesterman OBE, Founder & CEO of Cazoo mentioned: “Now we have an incredible workforce who’re devoted to reinventing the used automobile shopping for expertise by offering the very best choice, worth, high quality, and comfort for UK automobile patrons. Regardless of the present challenges many companies are dealing with, Britain stays a market chief for expertise and innovation and an ideal place to begin a enterprise.”
Hopin — now a double unicorn
Founder/s: Johnny Boufarhat
Based 12 months: 2019
Primarily based out of London, Hopin is a stay on-line occasions platform that lets attendees study, join, and work together with individuals all around the world. Earlier this month, the digital occasion supplier bagged $125M (almost £94.3M) Series B funding in a spherical led by present investor IVP. New traders together with Tiger World, Coatu and DFJ Development additionally took half within the funding spherical alongside returning traders Accel, Salesforce Ventures, Seedcamp, and Northzone. With the newest funding spherical, the general valuation of the London-based startup escalated to £2B.
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Notably, this funding comes a couple of months after the $40M (almost £30M) Sequence A funding it bagged in February. This funding makes Hopin the fastest-ever double unicorn. Now, the corporate claims to have over 3.5 million customers and over 50,000 teams that host occasions by way of its software program.
It isn’t stunning to see the Zoom rival grew to become a double unicorn in only a 12 months of its launch because the digital occasions idea has caught the development whereas journey and in-person occasions had been cancelled all around the world.
“Hopin is the fastest-growing firm we’ve seen at this stage and has meaningfully exceeded its plan since our final funding in June,” mentioned Jules Maltz, normal accomplice, IVP. “Now we have been lucky to spend money on early hyper progress corporations like Slack, Snap, and Twitter. Hopin is a type of uncommon corporations with the same progress trajectory — they’ve constructed a particularly customer-centric group, with an formidable revolutionary roadmap that they will scale rapidly — a certain recipe for fulfillment.
Gymshark — unconventional advertising and marketing mannequin
Founder/s: Ben Francis
Based 12 months: 2012
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Gymshark, a sportswear firm primarily based in Solihull is without doubt one of the newest British startups to realize the unicorn standing. In August this 12 months, the corporate that has constructed a model by way of social media influencers starting from YouTube health gurus and Instagram bodybuilders raised $200M (almost £150M) funding from Common Athletic. Ultimately, its valuation is over $1B (almost £0.75B) regardless of its unconventional advertising and marketing mannequin.
It’s stunning to see the sportswear model get the unicorn badge regardless of the continued pandemic disaster, all because of its cutting-edge expertise that promotes not solely understanding but additionally utilizing the precise health dietary supplements. Gymshark continues its lean method that rejects the high-street retail mannequin for a wholly on-line retailer. Whereas the old-school mannequin is obsessive about having many merchandise within the retailer, this firm believes within the idea of much less is extra and has solely easy merchandise on its on-line retailer.
Particularly in the course of the COVID-19, many high-street manufacturers all around the world needed to shut both briefly or completely because of accumulating losses of their income. Quite the opposite. Gymshark’s income has elevated and continues to develop.
Gousto — unicorn after lockdown surge
Founder/s: James Carter, Timo Boldt
Based 12 months: 2012
Gousto, a London-based on-line meal-kit producer and retailer is one other superb UK-based firm to get the unicorn badge in 2020. The recipe field startup backed by Joe Wicks, a physique coach secured £25M equity funding from present traders BGF and Perwyn taking its valuation over $1M (almost £0.75B).
Popularly referred to as the ‘Spotify of meals’, Gousto has grow to be a unicorn in the course of the lockdown imposed as a result of COVID-19 pandemic. When everybody was caught at house and hundreds of thousands of individuals had been working from house in the course of the previous few months, Gousto has helped them by offering meal kits which are able to prepare dinner or prepared eat, thereby saving their helpful time in making ready meals.
Timo Boldt, Founder & CEO of Gousto commented: “Reaching tech unicorn standing and becoming a member of the ranks of these elite corporations which have attained a billion-dollar valuation is a proud second for your entire Gousto workforce and all of our shareholders however we’re nonetheless solely simply getting began. The market alternative forward of us is huge, as adjustments in client behaviour drive everlasting change by means of your entire grocery market.”
Arrival — electrical car unicorn
Founder/s: Denis Sverdlov
Based 12 months: 2015
Arrival is a London-based Tesla rival that develops and manufactures zero-emission, electrical public transportation automobiles reminiscent of vans and buses. The corporate lately bagged $660M (almost £496M) funding. This funding was led by strategic companions Hyundai, Kia, UPS, Winter Capital. Notably, Hyundai and Kia. These companions are wanting ahead to co-develop zero-emission automobiles together with Arrival.
With this deal, the overall valuation of the corporate is now $5.4B (almost £4B). Aside from turning into a unicorn, the corporate has additionally claimed that it goes public on the identical time. Going by the corporate’s assertion, the Tesla rival is all set to go public within the first quarter of 2021.
Arrival develops software program, supplies, parts, and scalable skateboard platforms and its micro-factories permit them to make automobiles and adapt to any mobility ecosystem. The corporate’s new technique makes use of low CapEx, quickly scalable microfactories. These may be positioned anyplace on this planet so as to serve the areas they’re positioned in.
“With Arrival’s merchandise, our purchasers are usually not pressured to compromise between being inexperienced and being cost-efficient. Our deal with the entire EV ecosystem, new strategies of design and manufacturing, and our enabling applied sciences are the important thing to driving down the price of EVs and accelerating the transition to zero-emission transportation globally,” mentioned Denis Sverdlov, Founder and CEO of Arrival. “CIIG’s management workforce has invaluable expertise in constructing companies globally throughout a variety of industries. We’re excited to accomplice with them as we start our journey to being a publicly-listed firm and delivering our merchandise to clients and cities all over the world.”
Octopus Power — affect unicorn
Founder/s: Greg Jackson
Based 12 months: 2015
British utility provider Octopus Energy achieved the unicorn standing in Could and is valued at over £1B. This was attainable by closing $360M (almost £270M) funding from Origin Power, one among Australia’s main power corporations, which took a 20% stake in Octopus Power. Notably, that is the one of many biggest funding rounds within the UK this 12 months. Additionally, it has signed a deal to license the corporate’s Kraken expertise platform. Kraken will herald over £300M in licencing charges over three years.
In a current growth, the entech pioneer launched its service in Germany in an try to disrupt the market and ship contract freedom and revolutionary tariff for customers. The enterprise named Octopus Power Germany targets 1 million clients by 2024 and intends to hurry up enlargement with an funding of €80M (almost £71.8M).
Greg Jackson, CEO and Founder, Octopus Power mentioned: “It was a no brainer to arrange Octopus Power in London, surrounded by like-minded tech innovators and game-changing companies. We’re utilizing expertise to make a giant inexperienced dent within the universe, and from our base in London, we’ve constructed an additional 5 workplaces throughout the UK and now have companies in Australia, Germany and most lately the USA. We’re keen about making the UK the worldwide ‘Silicon Valley of Power’, however we might not have been in a position to develop so rapidly domestically or internationally with out the help of London’s extremely revolutionary tech ecosystem.”
UK races towards the US
Speaking about unicorns, virtually 48% of the worldwide unicorns are within the US, which is 235 corporations together with 50% of the worldwide decacorns. At the moment, there are 26 decacorns with a valuation of over $10B (almost £7.5B). Following the US, comes China with the second-highest variety of unicorns with 119 (24.3%). Some notably Chinese language unicorns embody trend model SHEIN and ByteDance, which is the world’s solely hectocorn valued at over $100B (almost £75B).
Subsequent comes the UK, which ranks third when it comes to the variety of unicorns. As per info from Tech Nation, the UK continues to guide Europe when it comes to fintech VC funding. In 2020, there was $2.5B (almost £1.9B) price funding within the UK fintech corporations to this point.