Hundreds Of Unicorns Haven’t Raised New Funding Since 2021

We are witnessing an unprecedented pile-up of unicorn startups that have not raised any money since 2021.

Currently, an estimated 517 global unicorns — or private companies valued at $1 billion or more 1 — raised their last known round more than three years ago, per Crunchbase data. Such companies are particularly abundant in certain sectors, including enterprise software, fitness, commerce, AI and analytics.

The accumulation comes amid a sluggish period for tech IPO filings and large acquisitions. So far this year, we haven’t seen any tech unicorns go public — even those in hot spaces that recently raised big rounds.

In addition, the amount of money that went into long-unfunded unicorns is substantial. Per Crunchbase data, the ones on our list collectively raised more than $260 billion, with $80 billion of that secured by U.S. unicorns.

Below, we take a closer look at the sectors where much of the money went, with a focus on U.S. unicorns.

SaaS

At least 45 American SaaS unicorns haven’t raised a round since 2021.

It’s not hugely surprising. SaaS overall has had a challenging couple of years, with a market correction, belt-tightening by corporate customers, slower growth rates, and pressure to incorporate AI technology.

The list of long-unfunded SaaS unicorns includes some prodigious fundraisers. The biggest was equity and fund management software platform Carta, with $1.16 billion in funding to date. The San Francisco company secured a $7.4 billion valuation three years ago, but was reportedly valued last year at a fraction of that.

Others include cybersecurity providers Tanium and Sysdig, which previously raised $775 million and $730 million in equity funding, respectively.

Below, we put together a list of 10 of the largest SaaS fundraisers that have not had a reported round since 2021.

Shopping

People haven’t stopped shopping, but unicorns tied to e-commerce and consumer brands have certainly been securing less funding.

Per Crunchbase data, there are at least 36 U.S. unicorns in e-commerce and shopping industry categories that haven’t raised a round since 2021. Collectively, they pulled in over $14 billion in equity investment. Given that many of these are consumer-facing brands, the list includes some familiar names.

Among the biggest fundraisers is Miami-based Reef Technology, a cloud kitchen startup that raised a $700 million round in late 2020, before the space fell out of favor. Another is Dutchie, a platform for running cannabis dispensaries, an area that has fared poorly for startup investors.

Below, we put together a list of seven of the largest commerce-related fundraisers that have not had a reported round since 2021.

Fitness and wellness

Fitness and wellness was a robust area for unicorn creation a few years ago. These days, the fitness space in particular is attracting far less investment, and many heavy fundraisers from a few years ago aren’t getting fresh rounds.

Per Crunchbase data, about a dozen U.S. unicorns tied to fitness and wellness have not raised a round since 2021. At the top of the list is weight loss platform Noom, which raised $540 million at a $3.7 billion valuation in 2021. Since then, the New York company has carried out multiple rounds of layoffs.

Smart exercise bike brand Zwift raised its last reported round — a $450 million Series C — in 2020. And in the wellness space there’s Cerebral, a mental healthcare platform that raised $462 million from SoftBank and others between 2020 and 2021.

Below, we put together a list of seven fitness and wellness-related unicorns that have not had a reported round since 2021.

AI and analytics

AI and analytics are still very hot spaces for venture funding, so it’s not where we looked first for examples of unicorns that haven’t raised for a few years. In reality, however, there are still a lot of companies in these categories that fit our criteria.

Per Crunchbase data, at least 56 U.S. unicorns in analytics or AI-related industries have not raised a round since 2021. Previously, this group had raised more than $18 billion.

It’s not necessarily an indication that these companies have fallen out of favor. While some are struggling, others appear to be still in growth mode. Many are likely still funding operations with capital raised a few years back.

Below, we put together a list of AI, data and analytics-related unicorns that last raised funding in 2021 or earlier.

To panic or not to panic

For investors, the growing buildup of long unfunded unicorns isn’t necessarily reason to panic. Many raised huge rounds during the market peak, providing cash to get through dry years. And some should still produce enviable returns. Just look at Reddit, the star performer among last year’s IPOs, which raised its last venture round in 2021.

On the other hand, there are reasons why panicking would make sense. Typically, startups that raise follow-on rounds do so within three years. For the most sought-after companies, it often takes just months. Once a company has gone four years without fresh capital, meanwhile, the odds of raising a new round are slim, an analysis of Series B fundraising showed.