Unicorns, which are startups valued at over $1 billion, got a good chunk of venture investment in Q2 2016.
Unicorns were able to capture $8.78 billion in venture capital during the second quarter of 2016. This is 40% of all venture investment for that period. These startups are being helped by late-stage investors and low returns in other markets due to the economy.
The capital investment into unicorn companies in Q2 is the highest amount on record. However, less deals are being made, which has caused startup markdowns to drop by 25% during Q2 2016, reports Quartz.
“Venture capitalists are more selective about the types of investments they make,” Garrett Black, a PitchBook senior analyst, told The Australian Financial Review. “In a bull market, when there was exuberance, they were making bets across the board.”
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