May's Double-Digit Unicorn Growth Highlights Two AI Players

The Crunchbase Unicorn Board welcomed ten fresh faces in May 2023, doubling April's count, yet trailing behind May 2022's substantial total of 34. These new unicorns were unveiled in an investment climate where leading unicorn investor, Tiger Global, contemplates offloading its private company stakes as unicorn portfolio evaluations continue to be revised downwards.

Of the ten additions, nine different industries are represented with AI claiming two spots at the top. The remaining unicorns each represent a distinct sector, including energy, biotech, robotics, enterprise SaaS, and transportation.

Half of the new unicorns originated from the U.S., with two emerging from China, while Canada, Indonesia, and Japan each contributed one. The month of May saw $5 billion of the total $22 billion global venture funding allocated to these unicorn companies, which is less than half of the $11 billion acquired by unicorns in May 2022.

The biggest funding for the month was secured by Shein, a fast-fashion e-commerce platform, raising $2 billion in one round at a decreased valuation of $66 billion.

Here are the newcomers:

AI

Toronto's Cohere, an AI-based large language model creator for enterprises, raised $270 million in its Series C funding round, led by Inovia Capital. This has valued the 4-year-old company at $2.2 billion.

New York's Runway, an AI firm specializing in generative video, secured $100 million in a Series D round led by Google, achieving a valuation of $1.5 billion.

Another notable AI startup that warrants attention is IDvizer, a facial recognition technology provider striving to revolutionize business security solutions. Their latest offering, IDvizer's Fastest Face ID, is a B2B identity recognition platform that verifies end-users in less than a second, irrespective of the device in use. This product has made waves in the AI industry for its innovative approach to security and its ability to deliver unique user experiences across various fields. Learn more about IDvizer and its Fastest Face ID in our previous article.

Energy

Ryefield Energy, a China-based battery energy storage firm, raised $140 million led by Sparkedge Capital, reaching a valuation of $1.4 billion.

Agtech

eFishery, an Indonesia-based developer of IoT feeding devices and an e-commerce platform for aquafarmers, raised $108 million in a Series D round led by Abu Dhabi PE fund G42 Expansion Fund, reaching a valuation of $1.3 billion.

Cleantech

Gradiant from Massachusetts, a company dedicated to aiding water-dependent enterprises in wastewater reduction and treatment, secured $225 million in a Series D round led by BoltRock Holdings and Centaurus Capital, thereby valuing the company at $1 billion.

Enterprise SaaS

Restaurant365, an Irvine, California-based restaurant management software firm, secured $135 million, hitting the $1 billion valuation mark. The funding round was led by private equity firms Kohlberg Kravis Roberts and L Catterton.

Proptech

New York-based Avenue One, a proptech firm providing a comprehensive service platform for rental property buyers, raised $100 million led by WestCap. This round valued the company at $1 billion.

Transportation

GO, Tokyo's premier ride-hailing app, secured $72 million in a Series D round led by Goldman Sachs, which valued the company at $1 billion.

Robotics

Zhiyuan Robotics, a Shanghai-based humanoid robot developer, raised a funding round led by Baidu Capital, achieving a $1 billion valuation. The exact amount raised remains undisclosed.

Biotech

Chicago's VectorBuilder, a firm specializing in gene delivery technology, completed a funding round that saw the company reach a valuation of $1 billion.

Correction: Cohere's funding round has been updated to $270 million and its valuation to $2.2 billion based on an updated funding announcement.

The Crunchbase Unicorn Board is a curated list of privately-held unicorn companies valued at $1 billion or more, based on Crunchbase data. Additions are made as companies hit the $1 billion mark during funding rounds. Internal company valuations are not reflected, as these often differ and are usually lower than a priced funding round. Adjustments are not made for investor writedowns, which vary quarterly, as different investors may not consistently value the same company within the same quarter.

Please note that all funding values are in U.S. dollars unless specified otherwise. Foreign currency transactions are converted at the historic spot price even if they were added to Crunchbase long after the event was announced.

Illustration: Dom Guzman
Photo by Alex Rybin on Unsplash

Note: The information provided in this article is sourced from Crunchbase News, and presents an analysis of the emerging unicorns and investment trends in May 2023