Unicorn/quasi-unicorn enterprises lead the development of the digital economy with innovative technologies, efficient products and unique business models, empowering traditional industries while expanding the boundaries of production and life, enhancing the resilience of economic development, and reflecting the strong new momentum of economic development.
At present, Hangzhou has firmly ranked in the forefront of new first-tier cities, with the characteristic advantages of "innovative and dynamic city", and is committed to building the "first city of digital economy". With the continuous improvement of Hangzhou's digital industrialization and industrial digitalization level, the digital economy has become the key direction of Hangzhou unicorns and quasi-unicorn enterprises. At the same time, Hangzhou's innovation environment is also constantly improving and optimizing, which has planted a suitable development soil for unicorns and quasi-unicorn enterprises. According to the "Global Science and Technology Innovation Center Evaluation Report 2021" released by the Shanghai Economic Information Center, Hangzhou's scientific and technological innovation strength ranks 51st in the world, an increase of 13 places over last year.
36Kr Research Institute attempts to depict the development panorama of the development of unicorn/quasi-unicorn enterprises in Hangzhou in 2022, and explores its development environment, characteristics and trends from the three dimensions of industry, region and financing.
Development status
Favorable factors such as policies, capital, technology and business environment provide high-quality soil for the incubation of unicorn/quasi-unicorn enterprises in Hangzhou. According to data from the 36Kr Research Institute, as of December 31, 2021, there are 28 unicorn enterprises and 152 quasi-unicorn enterprises in Hangzhou, showing the distribution characteristics of multiple industries.
Industry distribution
Hangzhou unicorn enterprises are distributed in the e-commerce, auto transportation, corporate services, local life, financial technology, medical and health, advanced manufacturing and education industries, of which the number of unicorn enterprises in the fields of e-commerce, auto transportation and enterprise services ranks among the top three, 6, 6 and 4 respectively, accounting for 57.1% of the total. Hangzhou quasi-unicorn enterprises are distributed in 13 industries, including medical and health, enterprise services, e-commerce, local life, artificial intelligence, automobile transportation, big data, financial technology, advanced manufacturing, education, entertainment and sports, real estate services and tourism. Among them, the number of quasi-unicorn companies in the medical and health, enterprise services and e-commerce industries ranked among the top three, with 35, 32 and 18 respectively, accounting for a total of 55.9%.
Illustration: Hangzhou unicorn enterprise industry distribution by the end of 2021 Figure: Hangzhou quasi-unicorn enterprise industry distribution by the end of 2021
Regional distribution
From the perspective of regional distribution, the top three regions in the number of unicorn and quasi-unicorn enterprises in Hangzhou are Yuhang District, Xihu District and Binjiang District, with 57, 39 and 32 respectively. The largest number of unicorns and quasi-unicorns in Yuhang District is the enterprise service industry; the unicorn and quasi-unicorn enterprises in The West Lake District are mostly concentrated in the e-commerce industry; the Binjiang District is mostly for corporate services and medical health; and the Qiantang New Area and Xiaoshan District are mainly based on medical health.
Figure: Geographical distribution of unicorn enterprises in Hangzhou by the end of 2021
(According to the Notice of the People's Government of Zhejiang Province on Adjusting Some Administrative Divisions of Hangzhou City (Zhejiang Zhengfa [2021] No. 7) issued by the General Office of the Provincial Government, some administrative divisions of Hangzhou are optimized and adjusted. For the sake of statistics, this report conducts statistics on the number of regional unicorn and quasi-unicorn enterprises according to the place of incorporation of enterprises. Based on this, the number of unicorns and quasi-unicorn enterprises in some areas of Hangzhou will vary. ）
Financing
The total valuation of Hangzhou unicorn enterprises exceeds 300 billion US dollars, and the average valuation exceeds 10 billion US dollars. Overall valuation distribution is uneven: 72% of unicorns are valued at less than $3 billion, or just 7% of total valuations.
Figure: Valuation distribution of unicorn enterprises in Hangzhou by the end of 2021
Most of the financing rounds of Hangzhou unicorns and quasi-unicorn enterprises are in the middle and early stages. Among them, the number of early-stage financing companies that completed angel rounds, A rounds and B rounds accounted for 52.7% of the total number of unicorn and quasi-unicorn companies.
Pictured: Financing rounds for Hangzhou unicorn/quasi-unicorn enterprises by the end of 2021
Trends and recommendations
In the future, affected by government policies, market demand, talent resources and other factors, Hangzhou's medical and health industry will continue to grow, and the number and valuation of unicorn and quasi-unicorn enterprises are expected to further increase. In addition, based on the strong market demand and the strong support of the government, Hangzhou's digital technology advantages will become increasingly prominent, and at the same time, it will also play an important role in promoting the development of unicorn and quasi-unicorn enterprises.
As an innovative subject, unicorn/quasi-unicorn enterprises will inevitably encounter difficulties in the development process. At this stage, uneven development among enterprises, insufficient operational sustainability, and homogenization of products and services are the main challenges faced by unicorn and quasi-unicorn enterprises in Hangzhou. From quasi-unicorns to unicorns or even super unicorn enterprises, enterprises can exert efforts from the three aspects of industrial resource utilization, organizational culture construction and enterprise innovation path, and open up a suitable development path in the fiercely competitive market while continuing to consolidate competitive advantages.
The key issues of this report are as follows:
What is a unicorn/quasi-unicorn business?
What factors drive the development of unicorn/quasi-unicorn enterprises in Hangzhou?
What is the industry distribution of hangzhou unicorn/quasi-unicorn enterprises?
What are the characteristics of the geographical distribution of unicorn/quasi-unicorn enterprises in Hangzhou?
What is the financing situation of Hangzhou unicorn/quasi-unicorn enterprises?
What is the development trend of Hangzhou unicorn/quasi-unicorn enterprises?
What are the current development problems of Hangzhou unicorn/quasi-unicorn enterprises?
How can Hangzhou unicorn/quasi-unicorn enterprises open up a path suitable for their own development?
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