Start ups

• New additions in the unicorn list declined sharply in 2023, indicating a slowdown in the Indian startup ecosystem as per a report released by Huron named ASK private wealth Huron India future Unicorn Index, 2023.
• The overall number of unicorns declined from the previous year.
• There were 51 gazelles and 96 cheetahs in 2023 in India.

Different Categories of Start-ups

• Unicorns
  • refers to a privately held startup company with a value of over $1 billion.
  • It is commonly used in the venture capital industry.
  • The term was first popularised by venture capitalist Aileen Lee when she referred to the 39 startups that had a valuation of over $1 billion as unicorns.
  • The valuation of unicorns is not expressly linked to their current financial performance but is largely based on their growth potential, as perceived by investors and venture capitalists.
  • There are more than 1,000 unicorn companies around the world as of March 2022.
• Gazelles
  • Startups valued between $500 million and US$1bn; are likely to turn unicorns in three years.
• Cheetahs
  • Startups valued at $250 million and are likely to turn unicorn in five years.