An investor in Instacart, Capital Group, has repriced its shares in the company, lowering the estimate of the value of its online grocery delivery service. The news follows other similar price hikes by companies like Fidelity, who also own a stake in the decacorn.
Unsurprisingly, one more investor agrees that Instacart’s valuation was too high for 2021. It filed to go public in May, a few months after a new 409a valuation lowered its own internal valuation.
However, the scale of the price revision makes us scratch our heads. If Instacart, which was able to increase aggressively during the pandemic, is actually worth a fraction of what investors calculated last year, what about other unicorns? How many billion dollar startups are not worth that much today? More simply, how many unicorns have been effectively dehorned now ahead of their next rounds of funding?
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This question is important because we often see the sheer number of unicorns and their value in the market. Crunchbase, for example, today counts 1,372 unicorns worth about $4.6 trillion. For reference, technology’s big five (Apple, Amazon, Microsoft, Meta, and Alphabet) are worth just under $6 trillion today.