iStock; Peabody/YouTube; Samantha Lee/Business Insider
- 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.
Some of the world's biggest investment companies are racing to back the most exciting tech unicorns - private companies worth more than $1 billion - as businesses continue to prefer private funding to IPOs.
"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.
"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.
