Top Web3 Unicorn Startups Worldwide (2024)
Recently, Web3 has been widely accepted as the technology that underpins several of the most well-known cryptocurrencies in the world. Consequently, the quantity of web3 unicorns, startups valued at more than $1 billion, has increased significantly. In 2022, the Web3 age may be on the rise, but this tech has existed for a while. Many well-known businesses got their start as Web3 startups. These businesses’ astute leaders had a comprehensive long-term vision, and they are now succeeding in the online community and seeing a quickening speed in Web3 development. In this article, we will discuss how does web3 work, web3 unicorn trends, and talk about the highest-valued unicorn in web3.
Web3 Unicorn Startups
The applications of the Web nowadays are nearly indistinguishable from its early days. Web 1.0, 2.0, and 3.0 are three phases of web progression. To understand web3, it’s necessary to understand the two phases before. Web1 lasted approximately from 1991 to 2004. It was the first iteration of the web. Most users were content consumers, while most creators included web developers who created text- or image-based websites. Web 1.0 sites served static HTML. Sites had little interaction and supplied data and content through a static file system, not a database.
Then came Web2. Web2 is social and interactive and doesn’t need developers to create. Many applications enable anybody to create content. You can publish your thoughts online or post a video for millions to view, engage with, and comment on. Now, Web3 is a developing version that builds on Web2. The core difference between the two is decentralization.
What is web3?
Web3 developers don’t construct and deploy single-server or single-database apps. Web3 apps either operate on blockchains, decentralized networks of several peer-to-peer nodes (servers), or a mix of the two that creates a crypto-economic protocol. They are known as decentralized applications are dapps. To create a stable and secure decentralized network, network members (developers) are motivated to deliver high-quality services.
These members are compensated with tokens, which is why cryptocurrency plays a massive part in the protocols. These protocols may deliver computing, memory, bandwidth, identification, hosting, and other online services. Consumers pay to utilize the protocol, the same as how they spend on AWS or the cloud provider now. Except for web3, network members giving their services get the money directly without an intermediary. Therefore, many people may earn a livelihood via technical and non-technical protocol participation.
Like many kinds of decentralization, this eliminates unneeded and wasteful intermediaries. Filecoin, Livepeer, and Arweave are web infrastructure technologies that provide utility tokens. These coins also reward network members. Even Ethereum’s native blockchain operates this way.
Web3 adds features to the current Web2, such as:
- Trustless
- Self-governing
- Verifiable
- Permissionless
- Stateful
- Distributed and robust
- Native built-in payments
How does web3 help build a company?
In Web3, anybody can get involved in constructing a company or investing in it right away. Tokens bring about the concept of tokenization and establish a token economy.
The company declares the release of a certain amount of tokens, distributes 10% to the early donors and 10% to the general public, and reserves the remaining tokens for future contributor payments and project finance. The individuals who help construct the project may sell part of their holdings to earn money once the tokens are distributed. Investors can utilize their tokens to participate in alterations to the company’s future.
People can purchase and keep ownership of a company project if they believe in it, and they can sell their interest if they feel the initiative is moving in the wrong direction. The whole of the blockchain’s data is public and accessible, giving buyers total visibility into what is occurring. This contrasts with investing in private or centralized enterprises, where many decisions are often made in the dark.
What does web3 startup mean?
A Web3 startup is a business that uses the Web3 platform to operate its functions and is still in the early phases of growth. Blockchain technology, on which Web3 is built, is more affordable, promotes a decentralized structure, increases user safety, and makes ownership easier. Decentralization allows easy access and transparency of the blockchain platform and affects all, from financial transactions and payments to data security. Companies benefit from this in the marketplace.
What does unicorn startup mean?
Aileen Lee, a venture investor, popularized the term unicorn initially. A startup firm with a valuation of over $1 billion is considered a unicorn. It is often used in the venture capital sector. Being a unicorn is an uncommon accomplishment. Companies need an original concept, a distinct growth strategy, a strong business plan, and a workable method of reaching venture capitalists and private investors to become unicorns.
Due to their enormous size, unicorn funds usually come from private investors or venture capitalists, making them unavailable to regular investors. Many unicorns make their way to going public, albeit it’s not required. As of March 2022, more than 1,000 unicorn enterprises exist.
How does any startup become a unicorn?
The likelihood that a company will become a unicorn is 0.00006 percent. As a result, not every startup succeeds. Here are some characteristics of unicorn businesses that you may imitate in your ventures.
- It depends on valuation and forecast – The status of the unicorn startup boils down to relatively long projections and forecasts. Unicorns’ worth often depends on how financiers and venture capitalists believe these startup companies will develop over time. This implies that their valuations are unrelated to their financial results. Many of these businesses seldom make any money when they initially start.
- Unique problem-solving abilities – Your company must be committed to developing something novel to address market challenges if you want it to achieve unicorn-level status. For instance, the necessity for a ride-sharing app was initially seen by the ride-sharing business Uber. Throughout its rating system, the firm also made it simple for users to track the taxi’s whereabouts and hold the driver responsible.
- Technology-driven – The majority of unicorns have a technology-based core business strategy. FinTech accounts for 13% of all unicorns, while robotics and artificial intelligence (AI) account for 10%. Cloud computing and customer relationship management systems are just two examples of how technology helps startups run much more smoothly. Technology also enables efficient operation with minimal resources, which aids entrepreneurs in expanding and scaling their operations. An excellent illustration of how unicorns are using technology effectively is the currency exchange company Coinbase.
- Consumer-centric – Businesses selling to consumers account for around 62% of all unicorns. Their focus on offering customers products and services at reasonable pricing is a significant component of their business methods. For instance, Squarespace, a website builder, became a unicorn by offering its clients cost-effective options. It costs consumers anything from $12 and $40 to host their websites. It is a fantastic bargain for its consumers since it provides over 113 website layouts and integrated SEO tools within that pricing range.
Why are investors more interested in investing in web3?
Web3 unicorns are startups based on Web3 technology and are estimated to be worth over a billion US dollars. In 2021, venture capital companies spent $33 billion in blockchain and cryptocurrency businesses, expecting to double that amount in 2022. As per the trends, more and more VCs are interested in funding Web3 unicorn startups for several reasons:
- High potential returns – Compared to Web2 investments, the token economies that support many web3 initiatives may provide enormous returns. This is particularly relevant given the current environment of sharply rising inflation, rising interest rates, lowered startup valuations, and market turbulence.
- Liquidate any time – Startup investments made using traditional stock are illiquid. To take out completely, investors will often have to wait for a liquidation occurrence like an IPO or purchase. On the other hand, most Web3 projects in the early stages produce tokens that may be exchanged at any moment on exchanges. Since there isn’t a lock-up period, investors often have the chance to receive the rewards sooner if an investment grows 100X in a short period.
- Generate Passive income – Tokens provide VCs a rare chance to earn additional income on existing holdings rather than merely making standard stock investments and hoping to profit from an exit. There are three methods to do this–
- Staking existing tokens– involves pledging your resources to back a blockchain network that employs a proof-of-stake consensus process.
- Yield farming- where you may earn interest by putting your tokens in a liquidity pool.
- Liquidity mining- By giving a DeFi protocol liquidity, you may profit.
- Efficient Cost Management – Web3’s foundation layer infrastructure and token economies, which support how projects cooperate pool funds, and reward holders, pose a danger to make web2 enterprises seem just as ineffective as their pre-web forebears. Thus, startups no longer need to employ many talented individuals. Instead, companies may deliberately use their token-incentivized network to support their growth and success, turning it into a low-cost talent acquisition approach.
- Projected Growth – We are near the bottom of an Exponential curve, so a once-in-a-lifetime chance might very well be about to present itself. Because this is a very new market primarily characterized by a feeling of urgency and excitement, there is also a lot of hype and foolish money invested in it. Despite their early misgivings of cryptocurrency, JPMorgan, Goldman Sachs, and Citi recently established crypto research units to take advantage of the opportunity’s explosive growth.
Top unicorns in web3 worldwide
The development of the bitcoin business may be seen in the ascent of the web3 unicorns. These are businesses that are bringing in significant funding from mainstream investors. Cryptocurrencies and decentralized technologies have a promising future as the sector expands and gains broader public awareness. Below is the table that displays the top Web3 unicorns worldwide:
| Organization Name | Headquarters Location |
|---|---|
| NYDIG | United States |
| Trade Republic | Germany |
| Circle | United States |
| Fireblocks | United States |
| Discord | United States |
| Forte | United States |
| Animoca Brands | Hong Kong |
| Dunamu | South Korea |
| Sorare | France |
| MoonPay | United States |
| Ava Labs | United States |
| Amber Group | Singapore |
| Dapper Labs | Canada |
| Blockchain.com | United Kingdom |
| Ledger | France |
| Alchemy | United States |
| Bitpanda | Austria |
| DriveWealth | United States |
| Paxos | United States |
| Chainalysis | United States |
| Anchorage Digital | United States |
| FalconX | United States |
| MasterClass | United States |
| Polygon | India |
| Yuga Labs | United States |
| Figure | United States |
| Blockdaemon | United States |
| OpenSea | United States |
| Gemini | United States |
| Helium | United States |
| Aptos | United States |
| Mysten Labs | United States |
| Bitso | Mexico |
| Sky Mavis | Singapore |
| Public | United States |
| CoinSwitch | India |
| CertiK | United States |
| Blockstream | Canada |
| Aleo | United States |
| Mythical Games | United States |
| Ripple | United States |
| LayerZero Labs | Canada |
| Immutable Systems | Australia |
| Genies | United States |
| Copper | United Kingdom |
| StarkWare Industries | Israel |
| TaxBit | United States |
| 2TM | Brazil |
| Hyperchain Technologies | China |
| CoinDCX | India |
| Worldcoin | Germany |
| Monad | United States |
| Wormhole | Cayman Islands |
| Opn | Japan |
| Lukka | United States |
| Binance.US | United States |
| 1inch Limited | Saint Kitts and Nevis |
| KuCoin | Seychelles |
| Optimism | United States |
| Uniswap | United States |
| BitGo | United States |
| Bitfury Group | The Netherlands |
| Magic Eden | United States |
| DFINITY | Switzerland |
| Figment | Canada |
| MSquared | United Kingdom |
| Talos | United States |
| Berachain | Cayman Islands |
| Candy Digital | United States |
| Matrixport | Singapore |
| iTrustCapital Inc. | United States |
| Offchain Labs | United States |
| 5ire | United Kingdom |
| Babel Finance | Hong Kong |
| CoinList | United States |
| Phantom | United States |
| MobileCoin | United States |
| CoinTracker | United States |
| ZYBER 365 | United Kingdom |
| Scroll.io | Seychelles |
| Dune Analytics | Norway |
| Unstoppable Domains | United States |
| Axelar Network | Canada |
| Flashbots | Cayman Islands |
| Multichain | Singapore |
| Injective | United States |
| Celestia | Liechtenstein |
| Andalusia Labs | United States |
| Boba Network | United States |
| Polyhedra Network | Singapore |
| Gauntlet | United States |
| 21.co | Switzerland |
| Humanity Protocol | Hong Kong |
| Kraken | United States |
| Binance | Malta |
| Digital Currency Group | United States |
| GeoComply | Canada |
| BFMeta | United States |
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