The world's biggest unicorn companies have suffered an £8 billion drop in value this year, with retailers seeing the biggest falls as households struggled with the cost of living.
Research found that the total value of the top 100 unicorn companies – which are private companies with a valuation of at least $1 billion (£800 million) – fell by 1 percent in the 12 months to September 2023. There was a 30 percent increase in value over the previous year.
In Europe and the rest of the world, valuations fell by £70 billion, or 18 percent, in 2023.
Singapore-based fashion brand Shein was a major contributor to the decline with a £27 billion write-down.
E-commerce was the worst-performing sector in the top 100, with overall value down 39 percent this year, reflecting a decline in businesses more exposed to consumer spending habits.
Slump: Research shows the total value of the 100 largest unicorn companies fell by 1 percent in the 12 months to September 2023
But US and Chinese companies on the list bucked the trend and reported a 5 percent valuation increase, driven by significant jumps for Elon Musk's SpaceX and TikTok owner ByteDance. Most companies saw no change as a result of a subdued deals market, the analysis by professional services provider PwC showed.
The bankruptcy of the Bahamas-based crypto exchange FTX has removed two unicorns from the list: FTX and FTX US. Meanwhile, the value of AI-related companies rose by 43 percent, or £110 billion, thanks to OpenAI storming into the top five with a price tag of £67 billion.