Top 5 Most Valuable Startups in the World

Posted on 15 March 2016. Tags: Most, Startups, Valuable, World

Uber Technologies Inc., a ride-hailing company valued at more than $ 50 billion, has topped the list of most valuable startups in the world according to Statista, an online statistics portal.

The Chinese smartphone maker Xiaomi trails Uber, with a $ 46 billion dollar valuation.

Of the top 5 startups, six companies are from the United States, three are from China and one is from India.

Below, we take a closer look at the top 5 privately held startups, based on their last valuation of the most recent funding rounds.

1. Uber

Travis Kalanick and Garrett Camp founded “UberCab” in 2009. The company officially launched its ride-hailing service and mobile application in San Francisco in 2011 and changed the name to Uber. It has expanded its service to 390 cities worldwide in a couple of years.

The company, which takes 20 percent cut of each ride, recorded revenues of more than $ 400 million in 2014. Uber Technologies Inc. completed a new funding round in July 2015 that valued the company at close to $ 51 billion.

Its success story has led to the emergence of rivals like Lyft and an opposition from the incumbent taxi industry and regulators. The service has been banned in some areas due to concerns about safety.

The rapid increase in Uber’s valuation reflects its aggressive growth as well as the rising popularity of its service among riders.

2. Xiaomi

Xiaomi Corp., headquartered in Beijing, is the world’s 4th largestsmartphone maker after Samsung, Apple, and Huawei. The company designs, develops and sells smartphones, mobile apps, and related electronics.

It has achieved 30 percent growth in sales in 2015 and has a significant presence in China, India, and Southeast Asia.

The company broke the Guinness world record by selling more than 2 million handsets online in 24 hours by offering discounts on its fifth birthday (April 6, 2015).

Critics say Xiaomi’s phones and tablets are very similar to Apple’s. On top, the company’s chairman Lei Jun, the fifth richest man in China, has carefully cultivated a Steve Jobs image and is considered as a “knockoffof Steve Jobs”.

Xiaomi raised $ 1.1 billion in 2014, at a valuation of $ 45 billion. This is a dramatic growth from the last time the company raised money in June 2012 at a valuation of $ 4 billion.

However, this whopping valuation may not be sustainable, according to experts. With the economic slowdown in China, the company is expected to miss the sales targets.

3. Airbnb

Founded in 2008, Airbnb  is a social website that connects people looking to rent their homes to people who are looking for local accommodation. It operates in more than 34,000 cities and 190 countries. It was founded by Brian Chesky, Joe Gebbia, and Nathan Blecharczyk in San Francisco.

Airbnb’s valuation has been driven by its solid growth in the last few years. Its estimated revenues for 2015 were $ 900 million.

Airbnb Inc. has raised a new round of funding in November 2015 that valued the company at $ 25.5 billion. With this valuation, Airbnb surpasses the market value of major hotel chains like Hilton ($ 21.0 billion), Marriott ($ 17.5 billion), and Starwood ($ 11.9 billion).

4. Palantir

Palantir Technologies, Inc. is a private American software and services company, specializing in data analysis. The company’s software is used by government agencies such as the Central Intelligence Agency and the Federal Bureau of Investigation to visualize relationships among large amounts of data.

Palantir is best known for helping the U.S. government track down al Qaeda leader Osama bin Laden.

It was founded in 2004 by five partners and is currently led by CEO Alex Karp who has no background in technology. Karp holds a Ph.D. in neoclassical social theory.

Palantir has recently raised funds at a $ 20.3 billion valuation, up from $ 15 billion in 2014. This new valuation made Palantir the fourth most highly valued startup, just under Airbnb, Xiaomi, and Uber.

It is one of the largest private employers in Palo Alto, California, with more than 2,000 employees. The company is keen on staying private and will not be filing for a public offering.

5. Meituan-Dianping

Meituan-Dianping is the China’s largest “group deals” website. The company offers deals of the day by selling vouchers on local services and entertainment including movie tickets and restaurant bookings. Its services are in some ways similar to the services sold by Groupon and Yelp of the United States.

The company was formed by the merger of two rival startups, Meituan and Dianping in October 2015. It has 150 million monthly active users and its total transaction volume had reached $ 25.8 billion in 2015.

In its largest single funding round in January, the company was valued at $ 18 billion.

 

 

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