Forbes has once again teamed up with TrueBridge Capital Partners to release its annual list of the 25 U.S.-backed companies most likely to reach a $1 billion valuation. This year marks the tenth year of the collaboration, with 58% of previous list alumni becoming unicorns. The list has been dominated by artificial intelligence, with notable alumni including DoorDash, Figma, Anduril, Benchling, and Rippling.
The goal of the list is to identify startups that are poised to become unicorns well before they become household names. The selection process is based on quantitative analysis, including metrics such as revenue, revenue growth, valuation, valuation growth, and headcount. Over the years, the list has featured successful companies like cybersecurity startup Tanium, which is now valued at $9 billion, and food delivery firm DoorDash, which has a market cap of $51 billion.
Recent additions to the list include defense tech firm Anduril, now valued at $14 billion, language-learning app Duolingo, publicly traded with a market cap of $8 billion, design startup Figma valued at $12.5 billion, HR software firm Rippling at $13.5 billion, and semiconductor startup Astera Labs, now publicly traded with a market cap of $6.2 billion. Astera Labs, the first semiconductor startup on the list, has seen accelerated growth due to advancements in artificial intelligence and machine learning.
This year’s list features companies utilizing AI technology for various purposes. Codeium uses AI for code autocompletion, Scribe makes training easier with AI, Fireworks AI helps businesses ship new AI products in a matter of days, and Replicate provides a library of open-source AI models for developers. The list also includes companies like Promise, which helps collect unpaid bills with text messages and zero-interest plans, addressing less glamorous but essential issues.
The list also highlights the gender diversity in startups, with five companies having female cofounders and female CEOs. This marks an improvement from last year, indicating a positive shift towards inclusivity in the male-dominated industry. Despite lower average previous year revenue and reduced equity raised compared to the previous year, the startups on the 2023 list showcase the growing importance and impact of artificial intelligence in the market.
Overall, Forbes’ Next Billion-Dollar Startups list continues to showcase innovative and high-potential companies in various industries, with a focus on those utilizing cutting-edge technologies like artificial intelligence. The success of past alumni and the diversity of this year’s list demonstrate the continued growth and evolution of the startup ecosystem.
