14 Most Valuable Venture-Backed Companies in the World

Published on July 13, 2022 at 9:06 am by Saad Raza in Lists, News

In this article, we will discuss the 14 most valuable venture-backed companies in the world. You can skip our detailed analysis of these companies, and go directly to 5 Most Valuable Venture-Backed Companies in the World.

Venture-backed companies are usually startups that have private equity-based financing from investors. These investors are known as venture capitalists and can include public and private corporations, and individuals. The venture capitalists can take up to 25% to 50% of a startup’s ownership. Venture capitalists are not hobbyists but professionals who provide capital assistance, guidance and support to startups.

Venture capitalists are experts at forecasting growth and evaluating potential of companies. But not all their investments are fruitful. As a rule of thumb, out of 10 startups, only one or two return profits on investments. The other three to four fail and the rest just manage to reach break-even levels. One of the examples of a successful return on investment is Sequoia Capital’s $60 million investment in WhatsApp which got converted into $3 billion when Facebook Inc. (NASDAQ: FB) acquired WhatsApp for $22 billion. Some other notable successful companies that were backed by VCs include Airbnb Inc (NASDAQ:ABNB), DoorDash Inc (NYSE:DASH) and Robinhood Markets Inc (NASDAQ:HOOD).

In the year 2020, when businesses saw a downward trend due to COVID-19, venture funding saw an annual increase of 4% with total funding amounting to $300 billion. This growth is attributed to an increase in the use of technology-based online solutions for work, health, education, finance, and shopping.

Photo by Olivier Bergeron on Unsplash

14. One97 Communications

Valuation: $16 billion

One97 Communications is based in India and operates in the fintech industry. One97 Communications offers financial services through its platform Paytm. Paytm allows e-commerce sellers to use semi-closed wallets for accepting payments. Some of the major investors in One97 Communications are Intel Capital, Sapphire Ventures, and Alibaba Group. Founded in 2000, One97 Communications has raised $4.73 billion. One97 Communications earned a revenue of $380 million in 2020.

13. BYJU’S

Valuation: $18 billion

BYJU’S is an Indian startup with operations in the Ed-tech industry. BYJU’S offers a K-12 learning application that allows students to learn for classes 4 to 12 and prepare for competitive exams like JEE, NEET, CAT, GRE, GMAT, and IAS. Since its inception in 2015, BYJU’S has raised $3.62 billion. The investor count of BYJU’S is 41, with major investments from Tencent Holdings Limited (HKSE: 0700. H.K.), Lightspeed India Partners, and Sequoia Capital India. BYJU’S earned a revenue of $800 million in 2021.

12. Fanatics

Valuation: $27 billion

Fanatics is based in the U.S. and works in the e-commerce and direct-to-consumer industry. Fanatics offers merchandising, marketing, fulfillment, and e-commerce services to professional sports leagues, collegiate teams, conferences, and other major sports events. Fanatics works with its own collection of merchandise on its e-commerce store and customized ordering service on its B2B website. The major venture capitalists investing in Fanatics include SoftBank Group Corp. (OTC: SFTBY), Andreessen Horowitz, and Temasek Holdings. Fanatics earned a revenue of $2.6 billion in 2020.

11. FTX

Valuation: $25 billion

FTX, a Hong-Kong based company, operates in the Fintech industry. FTX is a cryptocurrency exchange providing traders a platform to trade online. FTX also offers derivatives, options, and tokenized stocks. FTX has an investor count of 31 with major investors like Sequoia Capital, Thoma Bravo, and SoftBank Group Corp. (OTC: SFTBY).

10. Chime

Valuation: $25 billion

Chime is based in San Francisco and operates in the fintech industry. Chime offers a mobile banking app that is aimed to reduce banking fees and automate savings. As of September 2021, Chime has raised more than $2.44 billion since its inception in 2013. Chime has an investor count of 24 with major investors like Forerunner Ventures, Crosslink Capital, and Homebrew.

9. Epic Games

Valuation: $32 billion

Epic Games is based in North Carolina and works in the Software/Gaming industry by developing video games. Some of the well-known games by Epic Games include the Gears of War series. The Unreal Engine technology of Epic Games is also very popular. Since its foundation in 1991, Epic Games has raised $4.375 billion from major capitalists like Tencent Holdings Limited (HKSE: 0700. H.K.), KKR, and Smash Ventures.

However, gaming companies and tech stocks like Airbnb Inc (NASDAQ:ABNB), DoorDash Inc (NYSE:DASH) and Robinhood Markets Inc (NASDAQ:HOOD) are feeling the brunt of the slowing economic activity amid recession fears.

8. Nubank

Valuation: $45billion

Nubank operates in the fintech industry and is based in Sao Paulo, Brazil. Nubank offers a no-fee credit card to the Brazilian market. The card is managed through Nubank mobile application. The company has raised over $2.547 billion in investments since its incorporation in 2014. The total investor count of Nubank is 28, with major VCs like Sequoia Capital, Redpoint E.Ventures Management, LLC., and Kaszek Ventures.

7. Revolut

Valuation: $33 billion

Revolut is based in London and operates in Mobile Software & Payments industry. Founded in 2015, the company has raised over $1.716 billion in venture investments. Revolut aims to remove the hidden banking costs by providing money exchange services at interbank rates, multi-currency cards, and money transfers using the social network. Revolut has over 30 investors, including major venture capitalists like Index Ventures, DST Global, and Ribbit Capital.

Venture capital activity has slowed down in 2022 amid recession fears and broader rotation away from growth stocks like Airbnb Inc (NASDAQ:ABNB), DoorDash Inc (NYSE:DASH) and Robinhood Markets Inc (NASDAQ:HOOD).

6. Databricks

Valuation: $22 billion

Data Bricks is based in San Francisco and provides Data and Document Management services. Since its inception in 2013, Databricks has raised $3.497 billion, as of September 2021. Databricks offers a data platform for simplification of data integration and allows data analytics services. Databrick has over 29 investors with major names, including Andreessen Horowitz, New Enterprise Associates, and Battery Ventures.

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