Research On Valuation Of Unicorn Enterprises In Venture Capital

In recent years,the term "unicorn" has appeared more and more frequently in people's field of vision,and the capital world has given it a high degree of attention.Undoubtedly,China has ushered in an unprecedented technology-based entrepreneurial enthusiasm.Correspondingly,venture capital is also proud of capturing unicorns.Unicorn companies are appearing faster and faster,and there is an acceleration in valuation growth.In the past,a project could have reached a ?1 billion valuation in 10 years,and it may now be reached in three or four years."Fast" has become the key word repeatedly mentioned in the "unicorn fever",and behind the "fast" is the influx of capital waves,and inevitably spawned a bubble.The controversy over the valuation of unicorn companies has become the focus of public opinion.This paper collects data from 135 unicorn companies in China and the United States and builds models for empirical analysis to study the valuation of unicorns from the perspective of equity structure.The results of the study indicate that unicorn companies generally have overestimation,and the degree of overestimation is highly correlated with the terms of the contract at the time of financing.Through the research of this article,I hope to remind investors and the media when facing the unicorn,"the hero of valuation"is not conducive to the healthy development of start-ups,and should pay more attention to the enterprise itself,rather than being blinded by the high valuation.