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Since Forbes and TrueBridge began partnering to create the annual Next Billion-Dollar startups, countless companies we have profiled have achieved impressive ratings in the private startup arena, have gone public, or have gone public. well-known brands.
With record levels of trading, funding and capital markets activity returning in 2020 and 2021, now is a good time to take a break and recognize a few highlights from recent years: High growth startups who have successfully capitalized on their respective market opportunities and achieved well beyond unicorn status.
Here are some of the more notable graduates – pre-Next Billion-Dollar start-ups that established themselves as well-known multi-billion dollar companies.
Upcoming billion dollar startups
TrueBridge Capital Partners
Duolingo
Since being on our list almost two years ago, Duolingo has grown into a remarkable consumer brand and profitable business and is widely regarded as the # 1 language learning app. More recently, Duolingo has seen tremendous growth amid the tailwinds created by the pandemic. In 2020, the company attracted 500 million total registered learners, 40 million active users, 1.5 million premium subscribers and $ 190 million in earmarked revenue. During the first lockdown alone in March 2020, the company reported a 300% increase in user numbers.
This hypergrowth was recently followed by an IPO by KO in July 2021, valuing the unicorn of language learning at $ 3.66 billion. The successful IPO sent a clear message to public market investors that there is long-term value in mission-driven edtech companies, although they have historically been shy to enter public markets. For its first earnings announcement as a state-owned company, Duolingo reported that revenue grew 47% year-over-year, paid subscribers jumped 46%, and daily active users increased. by 2% (described as a “non-seasonal increase caused by COVID-19”). Duolingo underscored its intention to continue to grow its learning base while investing in product innovation and data analytics.
Coursera
Appearing on our 2018 list, Coursera is another edtech startup that had a particularly strong 2020 in a context of increasing digital transformation and the success of Coursera for Campus (launched at the end of 2019), which allows colleges to offer the library of Coursera’s online courses to their students. In 2020, Coursera raised $ 130 million from Series F, which would have valued the company at $ 2.5 billion. The company saw a 59% increase in revenues thanks to more than 77 million registered learners, as well as more than 2,000 companies (including 25% of the Fortune 500) and 100 government agencies.
Coursera also debuted on the public market this year, with a valuation of $ 4.3 billion in March. Going forward, the company is executing various growth initiatives, many of which will accelerate its growth and operations in its second-largest market, India, through partnerships with leading Indian institutions and platform innovations to better serve Indian learners.
Darling
Honey, also featured on our 2018 list, is a browser add-on and mobile deal finder app that has become synonymous with savings for consumers since its inception. Originally an ecommerce price tracker, Honey has successfully expanded its range of services to include a shopping assistant and rewards program. With over 17 million users worldwide since its inception and member savings of over $ 1 billion in 2019 alone, it’s not hard to see how Honey has sparked the giant’s interest. PayPal payments.
PayPal acquired Honey at a price of $ 4 billion in 2019 – its largest acquisition to date – to give it a stronger footing earlier in the customer’s buying journey. The deal was widely viewed as an extraordinary multiple – and therefore a huge win for Honey and proof of the value of providing powerful services and tools to merchants and consumers in today’s fast-growing e-commerce environment. ‘accelerated.
Tassels
The Acorns digital savings and investing app, notably on our 2020 list, automatically invests small user contributions into baskets of stocks and bonds. Since its founding, the fintech startup – which has attracted venture capital investments from PayPal Ventures, BlackRock, Ashton Kutcher, Jennifer Lopez and Dwayne Johnson – has expanded into educational offerings, banking products, a debit card and an automated retirement account. service, helping it reach over 4 million subscribers by May 2021.
Most recently, in May 2021, Acorns announced plans to go public through a PSPC merger with Pioneer Merger Corp, valuing the company at around $ 2.2 billion. In particular, Acorns’ commitment to individual investors, which has been part of the company’s ethics since its founding, remains important to the company’s leadership in this transaction. Noah Kerner, CEO of Acorns, plans to contribute 10% of his personal stake in the company after the shutdown to fund a program that gives shares to certain Acorns customers.
Poshmark
Being on our 2018 list, online clothing retailer Poshmark managed a unique opportunity amid the growing popularity of online marketplaces for second-hand goods by launching a ‘social commerce’ marketplace where users can follow others. as well as like, share and comment on the clothes. Advertisement. In 2019 alone, Poshmark doubled its revenue paid to sellers from $ 1 billion to $ 2 billion. And in 2020, growth accelerated further as consumers became more cautious about their spending and turned to second-hand online shopping markets like Poshmark.
Poshmark had a huge IPO in January 2021 that valued the company at over $ 3 billion. The company continues to show consistent operating profitability as a state-owned enterprise and is expected to benefit from favorable industry winds as consumers demand a refreshed wardrobe when they return to work and consider moving. engage in more social activities.
Probe
Sonder offers remodeled properties through an app for short-term rentals and was on our 2018 list. In 2020, Sonder raised $ 170 million in a Series E funding round, making the company unicorn status. at a valuation of $ 1.3 billion. Soon after, the pandemic caused a slowdown in consumer and corporate travel, which impacted the hospitality industry as a whole. However, as Sonder was initially hit hard by stopping world travel, he successfully pivoted and began retargeting millennial pleasure travelers looking to leverage working from home while discovering new towns.
In April 2021, Sonder announced its intention to go public through a merger with Gores Metropoulos II, a SPAC affiliated with SPAC’s “godfather” Alec Gores, valuing the company at around $ 2.2 billion. Capitalizing on the ongoing recovery in travel, Sonder expects to reach $ 4 billion in revenue by 2025. With recent expansion to Dubai, Mexico City and Paris, the company may indeed be on track to meet that goal.
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