For nascent businesses, unicorns serve as crucial crucibles

According to a survey by Accel and Dealroom, 46 of the 89 Israeli unicorns have already given birth to a new generation of 207 startups.

Over the previous year, Israel’s unicorns may have lost some of their appeal and a significant portion of their true value. However, a recent study by the venture capital firm Accel and the information provider Dealroom has revealed just how crucial they are to the development of the technology ecosystem. The research claims that Israel presently has 89 unicorns, or high-tech businesses valued at more than $1 billion in their most recent investment round. A new generation of 207 startups, or former workers of these unicorns who departed to found their own business, have already been born from about 46 of them.

Israel is one of the top nations for starting new businesses and has over 40% more unicorns than any other nation in Europe. The most well-known incubator is Wix, whose former staff members have started no fewer than 22 new firms, including companies like 19 firms have been formed by former Playtika employees, while 15 startups have been founded by former Payoneer personnel. These three businesses were once traditional unicorns but are now publicly traded enterprises.

According to studies by Accel and Dealroom, Israeli entrepreneurs have similar behaviour tendencies to their European counterparts. They are roughly 30 years old, have worked at unicorns for about two years, and immediately after leaving the unicorn, they launch their firm. The higher rates of entrepreneurs with a technological background (55% versus 41%) and of founders who launch many startups (23% versus 18% on average) make Israelis stand out.

unicorn club
unicorn club

The report offers additional evidence of the significance of developing big businesses in Israel. In the past, the majority of entrepreneurs first obtained experience working for multinational corporations that acted as a launching pad for the Israeli ecosystem.

Even though the unicorns’ shine has faded over the past year, they still serve as another crucial launchpad for the Israeli startup ecosystem where you can learn about the building and product development processes and get experience before starting a business.

One of Silicon Valley’s first venture capital firms, Accel is presently commemorating its 40th birthday. In 2000, the firm established a specialised fund and started operating in Europe and Israel. From its seventh fund, which it finished raising $650 million for in 2021, it is currently making investments in Israel. One of the original investors in Facebook, Slack, Dropbox, and Spotify was Accel. It has invested in a number of businesses in Israel, including Snyk, Melio, and Axonius.

“Working at a unicorn before being independent is crucial because it gives the entrepreneur experience with success. Anyone with prior experience working for a unicorn—companies renowned for their high-quality products and engineering—can advance more quickly, according to Harry Nelis, a Partner at Accel. “Even though a unicorn’s worth has dropped recently, it doesn’t matter to us. In our opinion as investors, the fact that young entrepreneurs we are considering investing in have experience working for successful businesses is important.

Content Protection by

Back to top button