According to the valuation, startup companies are divided into three stages, Unicorn ($1 billion), Decacorn ($10 billion, and Hectocorn ($100 billion)
Heaptalk, Jakarta — The rapid technology adoption has also influenced the behavior shifting of society, delivering the evolvement of the technology startup presence significantly. According to the Startup Ranking report, Indonesia has hit the fifth position as the country with the highest number of startups worldwide, attaining 2,188 startup companies.
Based on the valuation, startup companies can be divided into three levels: Unicorn, Decacorn, and Hectocorn determined based on the growth and development opportunities for the potential market of related startup companies.
Refers to the CB Insights data, around 450 startup companies have infested the unicorn level, and 24 decacorn startups worldwide. As the most significant contributor to this output, the United States has spawned 214 unicorn and 11 decacorn startups. Also, China followed second place, consisting of 115 unicorn and six decacorn startup companies.
These terms have been used universally in recent years, but not everyone understands what these three terms mean. To identify the distinction between each stage, here are the fundamental differences:
1. Unicorn
According to the valuation, the level is devoted to startup companies with a valuation of over US$1 billion, or approximately Rp14 trillion. The valuation is based on investors and the long-term development of their venture capital. In Indonesia, several technology companies have occupied the unicorn level, spanning DANA, Kopi Kenangan, Akulaku, OVO, Xendit, Bukalapak, and Traveloka.
2. Decacorn
Higher than the unicorn level, startup companies are considered to hit this level if the business valuation has been attained of US$10 billion, or equal to Rp140 trillion. Compared to unicorn startups, companies that reach the decacorn level have a valuation of 10 times upper than the previous level. Indonesia‘s startup company has seized the decacorn level, namely Gojek.
3. Hectocorn
This level has become the highest level seen from its valuation value. To seize this stage, startup companies must reach a valuation of US$100 billion, or nearly Rp1,410 trillion. Despite plenty of companies whose valuation has exceeded US$100 billion, this level is only dedicated to startup companies.
Currently, Indonesia still does not possess a hectocorn startup company. Nevertheless, based on the business valuation, several giant multinational companies have attained this stage, including Google, Apple, Facebook, and Microsoft.
