The accelerated growth of startup valuations has sparked debate around the world, particularly in the markets where this has been reflected in the most significant raises and the speediest unicorns.
Despite ongoing pandemic uncertainty, a quarter of the UK’s 116 unicorn tech companies became unicorns during 2021.
Investment climbed significantly, up to £26bn in 2021 from £11.5bn in 2020, and leading VC funds like Balderton Capital, Eight Road Ventures and Index Ventures also had record years for fundraising.
The easy explanation for this is that startup sectors like fintech, especially BNPL, or rapid delivery have built incredible hype.
Ballooning valuations at later stages have created an investor-frenzy to get in on the action, leading to more generous offers and expedited negotiations.
A slightly more sophisticated answer might also reference that there simply aren’t many…
