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Hot start-ups, are billion dollar paydays still far?

Following Varonis System’s IPO on last Friday, people’s attention are drawn to the near billion dollar again. It was just on last Thursday, CNBC states in “Even for hot start-ups, billion dollar paydays are rare” that tech start-ups may be attracting more money than ever, but that doesn’t mean a billion dollar payday is easy to come by. Citing from a CB Insight’s report — 2013 Global Tech Exits Report – Private Company Tech Acquisitions and IPOs, the conclusion is that of all start-ups that were sold or went public in 2013, only about 1 percent garnered a billion dollars or more. 

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We all know unicorns are rare, however, start-ups never stop their steps. Getting invested by VC firms like Sequoia would increase their chances of exits, meanwhile, well-performed VCs are also looking for promising start-ups to invest. In this condition, unicorn is conceived. For instance, recently CB Insights invites us to take a close look of Li Ka-Shing‘s Horizon Venture.

According to CB Insights, Horizons has primarily focused on getting in early, as Seed VC and Series A deals comprise 60% of its investment activity since 2009. And what’s more, while Horizon’s investment firm is based in Hong Kong, Horizons’ deal activity has been primarily split among Israel and the U.S. 28% of its deals went to Israeli-based companies including toOnavo and Waze, acquired by Facebook and Google respectively. This will encourage start-up companies, especially those are in the Start-Up Nation to join the unicorn club, and it strengthens the tie between Israel and China as well.

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