2023 Diverse Unicorn Report: A Look into the 38 US Diverse Unicorns (Harlem Capital)

Summary

• The 38 US-based Black and Latino founded unicorns raised $20.1B of capital with a median raise of $343.1M.p.3
• The median time from Seed to Unicorn for the 38 companies is 4.2 years.p.3
• Software, Healthcare, Fintech and E-commerce represent 61% of companies and 60% of raised capital.p.3
• California and New York represent 58% of companies and 63% of capital raised.p.3
• 25% of capital was raised at Series D, and 32% of companies reached unicorn status at Series D.p.3
• The 38 companies have a total valuation of $109B and 9 exits.p.5
• 58% of Black and Latino founders were born outside of the US.p.3

Key insights

1. Black and Latino founded companies make up about 3.8% of roughly 1,000 US unicorns.p.4
2. Massachusetts outperforms California and New York on a median basis of capital raised by 54% and 25%, respectively.p.3
3. Series B+ rounds represent 95%+ of total capital raised.p.10
4. 24% of Black and Latino unicorns have exited either through IPO or M&A transactions.p.13
5. Tiger leads the top investors with 8 investments, among 12 investors that have invested in at least 3 unicorns.p.14
6. 88% of founders completed their undergraduate education and the median work experience prior to founding is 9.5 years.p.16
7. E-commerce has the lowest median years between deal rounds and Social Media the highest.p.12