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Some of the biggest funds in the world have backed major tech start ups, many of which have become "unicorns," or companies with $1 billion valuations.
US and Chinese funds top the list, while Tiger Global Management has the most in its portfolio, according to research firm CB Insights.
Major companies like Uber, Airbnb, and Stripe have all been backed by big funds.
Finding the next big thing isn't always easy, but for these funds it's become something of a competitive sport.
"We look for some obvious factors, such as a market that has the potential to become really large, and a disruptive product that customers love," Luciana Lixandru, a partner at Accel, said in an interview with Business Insider. "We also look for a certain spark, which typically goes back to the entrepreneur. We look for people who see solutions where others see problems."
The US accounts for 49% of unicorns, followed by China with 26%. Major companies like Uber, Airbnb, and Stripe have all been backed by many of the mega funds.
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"The investment landscape is pretty competitive," added Lixandru. "Interesting startups typically have their pick of investors and receive several offers."
Another key trend has been the rise of banks like Goldman Sachs in the tech space, alongside challenges from companies like Google Ventures.
There are 344 private unicorn companies globally valued at $1 billion - all featured on CB Insights' real-time global unicorn tracker.
US firm Tiger Global Management was the overall top firm pick with 42 unicorns in its portfolio, according to research firm CB Insights. Tiger Global has companies like Juul, Palantir, and Grab in its collection of mega start ups.
2. Tencent Holdings
China's Tencent has 40 unicorns in its portfolio with a cumulative value of $177 billion including Epic Games and Ola.
3. SoftBank
Japan's SoftBank — a major investor in WeWork and Uber — has the most valuable portfolio as it continues to pump Saudi Arabian money into the world's most exciting companies. (Almost half of its $93 billion Vision Fund was funded by the kingdom.)
Despite having the most unicorns in its portfolio, Tiger Global's companies are cumulatively worth 45% less than SoftBank's portfolio which is worth a massive $389 billion. Intriguingly, Softbank has backed the most unicorns which come from outside the US and China — 18 — with the vast majority coming from the world's two largest economies.
4. Sequoia Capital China
Sequoia Capital China has backed the most number of Chinese unicorns (27), representing 29% of all China-based unicorns.
5. Sequoia Capital
Sequoia Capital has notably backed Stripe, stockbroker Robinhood, and Snowflake.
6. Kleiner Perkins
Kleiner Perkins is a backer of Slack and Instacart.
7. DST Global
DST Global was famously an early backer of Twitter and has exciting names like Gojek and DoorDash in its portfolio.
8. Fidelity Investments
Office leaser WeWork is among the main highlights of Fidelity Investment's unicorn portfolio.
9. Andreessen Horowitz
Andreessen Horowitz is a backer of Stripe and Airbnb and is also a big backer in early stage funding, having provided either seed or series A money to 11 unicorns.
10. Wellington Management
Wellington Management has backed Airbnb, Coinbase, and Money Leap in its portfolio.
11. Accel
Accel is just outside the top 10, with 24 unicorns in its portfolio.
"It's our job as venture capitalists to stand out and show them [potential unicorns] how we roll up our sleeves to support them as much as we can," said Lixandru. "I have been known to travel to Eastern Europe, Israel, and the US to successfully convince an entrepreneur to work with us. Now, I'm happy I did!"
12. SV Angel
In 12th is SV Angel. The fund has backed the most unicorns from either seed or series A funding on the list, making it a key talent spotter.
13. Institutional Venture Partners
Institutional Venture Partners has 23 unicorns in its portfolio.
14. Google Ventures
Google, via its Google Ventures unit, has fingers in many pies. The search engine giant is a major player in tech startup world with 23 unicorns.
15. Goldman Sachs
Rounding out the top 15 is Goldman Sachs. One of the world's biggest banks has been boosting its investment in startups in recent years, having gone from 12 unicorns in 2015, to 23 now.
