Will 2021 be remembered as the year of the unicorn? During the first quarter of this year, 121 unicorns, companies valued at over $1 billion, were born globally. That is compared to 159 during the whole of 2020. While at the end of 2019, there were just 400 unicorn companies in the world, today, there are more than 600.
One sector that seems to have grown exponentially is fintech, much of which due to the coronavirus. The digital transformation which occured in 2020 was supposed to be a slow and steady process, however it got a massive push during the global pandemic. The rapid changes increased the demand for new tools for online transactions, which, in turn, created an influx in demand for fintech solutions.
As more people consumed goods from home during 2020, along with the recent stimulants the U.S. government shared with the American public, both the fintech and e-commerce sectors grew. The former experienced a rise in young ameatur investors, roaming the markets with the help of trade apps such as Robinhood (which is expected to go public this year) and Israeli company eToro, which recently announced a SPAC merger at a $10.4b valuation.