# China Surpasses USA in New Unicorn Startups for the First Time in 2024

In 2024, China surpassed the United States for the first time in the number of new unicorn startups. The two countries saw the emergence of 46 and 36 unicorn companies, respectively. However, when considering the total number of such enterprises, China still trails behind the USA by twofold.

## What Are Unicorns?

Unicorns are defined as companies that reach a valuation of $1 billion within ten years of their founding, have not gone public through an IPO, and have retained at least 25% ownership by the founding members. The majority of these companies are based in the USA (781 startups), followed by China (350), EU countries (135), India (91), United Kingdom (69), Canada (28), and Israel and Singapore (27 each).

## Growth Trends and Emerging Giants

Overall, the growth rate of unicorns is slowing down each year, according to the Institute for Innovation, Science and Economic Development (ISISED) at the HSE University. In 2022, 340 companies achieved unicorn status, 229 in 2023, and 127 in 2024. Despite this slowdown, the number of hectocorns (companies valued over $100 billion) is gradually increasing. Currently, there are four hectocorns:

• Reliance Retail from India
• Ant Group and ByteDance from China
• SpaceX from the USA

## The Significance of Unicorns in Innovation

The presence of unicorns is an indicator of the effectiveness of a national innovation system. Globally, there are 1,700 such companies, highlighting the dynamic landscape of venture capital firms and private equity companies driving economic growth and investment opportunities worldwide.

Discover more about fostering your startup with Co-Founder Ai.