Unicorns, defined as privately owned companies with valuations exceeding $1 billion, are now becoming a common phenomenon. Notably, AI startups are achieving a remarkable population and dominance shortly after their inception.
A prime example is OpenAI, which took the world by storm since its AI chatbot, ChatGPT, went viral upon its release in November 2022 and now boasts a staggering valuation of $80 billion. This impressive figure positions OpenAI as the third most valuable unicorn globally, trailing only ByteDance – the company behind TikTok, and SpaceX – a spacecraft maker.
The intense interest in AI over the past two years, coupled with OpenAI’s substantial market value, prompted Bestbrokers to use the latest data from CB Insights for analysis and to identify the new entrants into this elite group in 2024.
Africa’s unicorn list has not been updated, as the last recorded company to achieve unicorn status was Egypt’s MNT Halan in February 2023. This can be attributed to several factors:
Infrastructure challenges: Many parts of Africa face infrastructure deficits regarding reliable electricity, internet connectivity, and transportation. These are crucial for the growth of tech startups.
Access to capital: Access to venture capital and investment in early-stage startups can be limited compared to other regions like the US or Europe. This limits the scaling potential of African startups. Besides, Africa has recorded a continuing decline in funding in the past year.
Regulatory environment: Some African countries have regulatory environments that are not conducive to entrepreneurship or innovation, especially for crypto Complex bureaucratic processes can hinder startup growth.
