Burning through money raised to win customer share is considered okay in start-up circles. But which companies – particular among India’s 30-odd unicorns, or companies with a valuation of $1 billion or more – have been the most capital efficient?
Business-to-business (B2B) start-ups that are building tech products for the world have thus far raised the least capital to reach unicorn status, a report by Iron Pillar, a mid-stage technology investment company, found.
In a report on the ‘Tech Unicorns Market Landscape’, the venture capital firm stated that on an average, B2B global companies that are built from India, raised $97 million to reach unicorn status.
B2B companies with a primary focus on the India market have raised $131 million on an average to become unicorns. B2C start-ups, in comparison, are not this capital efficient.
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On an average, they have raised $206 million to be unicorns – more than double the capital B2B companies with a global market takes.
Source: Business Today
