| Abstract: |
Technology companies with high market capitalisation (often called unicorns)
have been receiving a lot of attention and media coverage recently. In
general, unicorns are IT-centric (software mostly, but also hardware). They
are often rather young global companies that match unsatisfied demand with
supply through the production (which can easily be scaled up) of innovative
and usually affordable services and products. These are usually part of the
mobile internet wave, and rely on connectivity (high speed networks, mobile
and fixed), new devices (smartphones, tablets, phablets…) and the
opportunities these bring. They are grounded in network effects, and
demand-side economies of scale and scope. They depend on a strong favourable
business environment, developing organically and building on fast expanding
markets (emerging economies, middle classes). They are Venture
Capital-dependent and the competition for funding can generate impressive
(i.e. inflated) valuations. These companies can be disruptive for other
sectors and firms. This report aims to document the phenomenon by
investigating a qualitative sample of 30 companies that have recently been
valued above the one billion dollar threshold. It identifies some of their
characteristics and the lessons to be learnt. The report has two parts: Part I
contains the overall findings of the investigation and some suggestions for
policy makers. Part II contains a detailed account of the case studies on
which the investigation is based. They are published as separate documents |