雅虎香港財經 25 Largest VC Backed Companies In The US in 2023
In this article, we will be taking a look at the 25 largest VC-backed companies in the US in 2023. If you don't want to get into details, you can comfortably head to the 5 largest VC-backed companies in the US in 2023.
Venture capital-backed companies have played a vital role in driving innovation and economic growth both in the US and internationally. These businesses are frequently in their early phases and have great growth potential, but they lack the funds to expand. In return for an ownership part in the company, VC firms offer financing and expertise to support the expansion of these businesses. Top VC firms like Sequoia Capital, Andreessen Horowitz, GGV Capital, etc have played a great role in funding these companies. According to reports, the rate of job growth for VC-backed businesses is approximately 8 times greater than that of non-VC-backed businesses.
The Rule Of VC Backed Companies
Many of the most important technological developments in recent years have been produced by VC-backed companies. For instance, VC firms were crucial in providing early capital for businesses like Alphabet Inc. (NASDAQ:GOOG)'S Google, Amazon.com, Inc. (NASDAQ:AMZN) and Apple Inc. (NASDAQ:AAPL). These businesses grew to be some of the biggest and most valuable businesses in the world, generating vast riches for their owners, backers, and staff members. Alphabet Inc. (NASDAQ:GOOG)'s Google generated a total revenue of $279.8 billion in the fiscal year 2022 while Apple Inc. (NASDAQ:AAPL) generated a revenue of $117.5 billion in the same year. Alphabet Inc. (NASDAQ:GOOG)'s Google, Amazon.com, Inc (NASDAQ:AMZN), and Apple Inc (NASDAQ:AAPL) are highly valued globally for their high end services.
The US has seen an increase in VC investment over the past few years, contributing to the robust state of VC businesses today. From the record-breaking pace of 2021, venture capital (VC) investment slowed down even more in Q4 2022, falling by 14% from the $37.9 billion raised in Q3. However, venture capital activity still exceeded $200 billion, reaching $209.4 billion, making 2022 the second-highest year for VC investment ever. This rise in financing has intensified transaction rivalry and raised early-stage company valuations.
Despite the COVID-19 pandemic's difficulties, VC-backed firms have maintained their strong performance. Due to changes in consumer behavior and a rise in the need for digital solutions, many businesses in industries including e-commerce, healthcare, and finance have experienced considerable growth.
A well-known hedge fund and venture capital company based in New York, Tiger Global Management, recently reduced the value of its portfolio of venture-backed companies. The decision was made in response to worries about soaring IT sector valuations and greater regulatory scrutiny. Some of the most well-known startups in the world, including Coinbase Global, Inc. (NASDAQ:COIN), Stripe, and Uipath, Inc. (NYSE:PATH) are included in the company’s portfolio of venture-backed companies.
With a focus on businesses that are upending traditional sectors, the firm has been a prolific investor in the tech industry. To reflect these concerns, Tiger Global had reduced the value of all of its venture capital assets by around 33%, as reported by The Wall Street Journal. This action raised concerns about the overall state of the technology industry and its possible effects on other investors. The two possible reasons for this act could be that this could be an indication of a wider market correction, as investors grow more wary of the risks involved with funding high-growth startups or Tiger Global might simply be acting prudently to manage its risk exposure and safeguard its investors.
Whatever the motivations underlying the decision, it emphasises how crucial meticulous due research is when making investments in the tech industry. Many inventive businesses will undoubtedly continue to prosper in the years to come, but investors need to be careful not to overpay for growth or overlook the dangers involved with funding early-stage startups. However, the long-term success of VC companies will depend on their capacity to recognise good startups, deliver value beyond cash, and handle shifting market dynamics. The tech industry is continuously changing, and VC companies will need to adapt to stay competitive and provide solid returns for their investors.
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Our Methodology
For our methodology, we have gathered data points from various reputable sources including pitchbook and Crunchbase, among others and ranked the 25 largest VC-backed companies in the US in 2023 in ascending order based on the highest revenue earned in the year 2022. The data for companies' total funding figures and prominent investors comes from Crunchbase. It is important to note that, for the private companies that made it to our list, we have estimated their revenues in the same year based on sources like Zippia and Statista.
Here is our list of the 25 largest VC-backed companies in the US in 2023.
25. Houzz
Revenue: $340 million (estimated)
Total Funding: $600 million
Houzz is an online platform that connects house owners with architects, designers, and contractors for remodeling and design projects. Along with a directory of nearby experts, the platform offers millions of product listings and photos. Houzz has earned over $600 million in funding from its investors including Sequoia Capital and GGV capital over 8 rounds.
24. Tanium
Revenue: $430 million (estimated)
Total Funding: $1.1 billion
Tanium is the creator of an endpoint management and security platform with real-time monitoring and extensive control. The company's platform makes use of high-fidelity data to help clients regain visibility and control over their digital businesses by enabling them to act quickly and precisely on issues as they arise, quickly scope incidents, and stop threats before they become out of control. Tanium has earned a total funding amount of $1.1 billion over 15 rounds. The Garage Syndicate and Axevil Capital are the most recent investors out of the 19 investors the company has.
23. Niantic
Revenue: $713.46 million (estimated)
Total Funding: $770 million
A software development business called Niantic focuses on location-based gaming and augmented reality (AR) technology. The popular mobile game, Pokémon Go, which has been downloaded more than 1 billion times worldwide, is its most well-known creation. The goal of Niantic is to employ technology to promote social connection, exercise, and discovery and has raised a total of $770 million in funding over 5 rounds and has 22 investors, out of which, Coatue and CRV are the most recent investors.
22. UiPath, Inc. (NYSE:PATH)
Revenue: $1.05 billion
Total Funding: $2 billion
A platform for automating routine and manual processes is offered by UiPath, Inc. (NYSE:PATH), a top robotic process automation (RPA) software provider. With the help of its software robots, or "bots," businesses can automate operations and boost productivity by interacting with software applications exactly like people do. With over 10,000 clients, UiPath, Inc. (NYSE:PATH) is regarded as a market leader in RPA and has earned a total of $2 billion in funding over 10 rounds from various investors including Sequoia Capital and Tiger Global Management.
21. Robinhood Markets, Inc. (NASDAQ:HOOD)
Revenue: $1.36 billion
Total Funding: $6.2 billion
Financial services provider Robinhood Markets, Inc. (NASDAQ:HOOD) offers a well-liked trading program for buying and selling stocks, options, cryptocurrencies, and exchange-traded funds (ETFs). Millions of consumers have been drawn to it by its straightforward and user-friendly platform, especially younger investors. Throughout 28 rounds, Robinhood Markets, Inc. (NASDAQ:HOOD) has raised a total of $6.2 billion in funding. On May 13, 2022, they received their most recent capital investment from a Post-IPO Secondary round. Their most recent investors are Emergent Fidelity Technologies and 9 Yards Capital.
20. Unity Software Inc. (NYSE:U)
Revenue: $1.39 billion
Total Funding: $1.3 billion
For developing and running interactive, real-time 3D content, Unity Software Inc. (NYSE:U) is a top platform. Most of the developers, artists, and creators use it to design and construct video games, experience augmented reality (AR), virtual reality (VR), and other interactive entertainment. Unity Software Inc. (NYSE:U) raised a total of $1.3 billion in funding over 12 rounds. FinSight Ventures and Milestone Ventures are the most recent investors of the company out of 21 total investors.
19. SoFi Technologies, Inc. (NASDAQ:SOFI)
Revenue: $1.57 billion
Total Funding: $3 billion
SoFi Technology, Inc. (NASDAQ:SOFI) is a provider of financial technology services that include personal loans, student loan refinancing, mortgages, investment, and banking. Through its digital platform, which offers simple access to financial products and tools, SoFi Technology, Inc. (NASDAQ:SOFI)'s mission is to assist people in achieving financial independence and accumulating wealth, and has raised a total of $3 billion in funding over 19 rounds. The most recent investors are HOF Capital and Asas Capital.
18. Rivian Automotive, Inc. (NASDAQ:RIVN)
Revenue: $1.6 billion
Total Funding: $12 billion
Rivian Automotive, Inc. (NASDAQ:RIVN) is an American manufacturer and automotive technology firm. The R1T electric pickup truck and R1S electric SUV are among its best-known products. Rivian Automotive, Inc. (NASDAQ:RIVN) has received funding from several well-known businesses, including Ford Motor Company (NYSE:F) and Amazon.com, Inc. (NASDAQ:AMZN), and has won accolades for its creative approach to EV development.
Ford Motor Company (NYSE:F) is one of the biggest automakers in the world that produces a wide range of vehicle models. Ford Motor Company (NYSE:F) has faced many issues but still has a significant role in the vehicle industry. The company has raised a total of $12 billion in funding with the help of 18 investors over 11 rounds. D1 Capital is the most recent investor and the latest funding was raised from a Post IPO Debt round in March 2023.
17. Credit Karma
Revenue: $1.8 billion (estimated)
Total Funding: $868 Million
Credit Karma is a personal finance startup that offers its consumers free credit monitoring, credit scores, and financial advice. Additionally, it provides advice on credit cards and loans, as well as resources for setting up budgets and controlling debt. It has accumulated a total of $868 million in funding over 8 rounds with the help of 14 investors. The recent investors in Credit Karma are Silver Lake and Viking Global Investors.
16. Palantir Technologies Inc. (NYSE:PLTR)
Revenue: $1.9 billion
Total funding: $3 billion
A software startup called Palantir Technologies Inc. (NYSE:PLTR) focuses on providing intelligence and big data analytics solutions and has raised a total of $3 billion in funding. Governments and organizations all across the world utilise its software platform to help them make better decisions and learn from massive amounts of data. Palantir Technologies Inc. (NYSE:PLTR) has a reputation for working with the American government and for playing a contentious part in national security and surveillance initiatives. The most recent investments in the company were made by ARK Investment Management and Milestone Ventures.
15. JUUL
Revenue: $2 billion (estimated)
Total Funding: $15.2 billion
JUUL is an electronic cigarette (e-cigarette) brand that became popular in the United States for its sleek design, discreetness, and use of nicotine salts, which provide a strong hit of nicotine. In response, JUUL has taken steps to address these concerns, including discontinuing certain flavored products and implementing age verification measures. The company has earned a total of $15.2 billion in funding with the help of 18 investors. The latest funding was raised from a Venture Series in November 2022.
14. Context Logic Inc. (NASDAQ:WISH)'s Wish
Revenue: $2.2 billion
Total Fundings: $1.6 billion
ContextLogic Inc. (NASDAQ:WISH)'s Wish is an online store where customers can purchase a wide range of things at discounts, including clothing, electronics, household goods, and more. The marketplace is renowned for its affordable prices and a broad assortment of goods, many of which are purchased straight from Chinese producers. After being established in 2010, ContextLogic Inc. (NASDAQ:WISH)'s Wish has developed into a major force in the world's e-commerce market and has a total of 48 investors, with General Atlantic and 10X Capital being the most recent investors, and has achieved $1.6 billion in revenue over 12 rounds.
13. SpaceX
Revenue: $2.2 billion (estimated)
Total Funding: $9.8 billion
SpaceX, a private American space exploration business, has the goal is to increase the accessibility and sustainability of space travel by designing, producing, and launching cutting-edge rockets and spacecraft. By launching the first privately funded spaceship into orbit and delivering humans to the International Space Station, SpaceX has made significant strides in the field of space travel. The company has a total of 83 investors, and has raised about $9.8 billion in funding over 29 rounds, receiving the latest funds from a Grant round in March 2023.
12. Instacart
Revenue: $2.5 billion (estimated)
Total Funding: $2.9 billion
With the help of personal shoppers who handpick items from nearby retailers and deliver them to clients' doorsteps, Instacart offers on-demand grocery delivery and pickup services. The website enables customers to shop from their preferred stores and provides several delivery choices, including same-day and expedited delivery.
Throughout the United States and Canada, Instacart has partnerships with more than 600 local and national retailers. The company has raised a total of $2.9 billion in funding with the help of 37 investors over 19 rounds. The most recent investors include Manhattan Venture Partners and Sequoia Capital, and the latest funding was raised from a Venture Series unknown in November 2021.
11. Peloton Interactive, Inc. (NASDAQ:PTON)
Revenue: $3 billion
Total Funding: $1.9 billion
A fitness firm called Peloton Interactive, Inc. (NASDAQ:PTON) provides a variety of home workout tools and services, such as treadmills, stationary bikes, and live and on-demand fitness courses. Personalized coaching, interactive features, and luxury at-home workout experiences are all part of the company's product and service offerings. As more people turned to at-home fitness options in recent years, Peloton Interactive, Inc. (NASDAQ:PTON) has grown in popularity, especially during the COVID-19 pandemic, and has raised about $1.9 billion in funding over 9 rounds with the help of 20 investors. The most recent investors include NBC Universal and Wellington management.
10. Coinbase Global, Inc. (NASDAQ:COIN)
Revenue: $3.1 billion
Total Funding: $498.7 million
Users can purchase, trade, and store cryptocurrencies like Bitcoin, Ethereum, and Litecoin using the exchange and platform Coinbase Global, Inc. (NASDAQ:COIN), which is the largest crypto exchange in the USA, and has earned about $498.7 million in funding. The platform also provides a selection of tools and services for cryptocurrency investors and traders, including institutional trading services, an API integration, and a mobile app and has 103 million verified users as of 2022. Coinbase Global, Inc. (NASDAQ:COIN) is funded by a total of 75 investors out of which ARK Investment Management and ADM Ventures are the most recent investors.
9. WeWork Inc. (NYSE:WE)
Revenue: $3.2 billion
Total Funding: $13.2 billion
WeWork Inc. (NYSE:WE) is a commercial real estate firm that provides services and adaptable shared office space to companies of all sizes. The business offers fully furnished offices, conference rooms, and co-working areas that are intended to promote productivity. WeWork Inc. (NYSE:WE) has more than 515,000 members worldwide and has experienced significant growth since its foundation in 2010. The company has raised $13.2 billion in funding. The latest funding was in March 2021 raised from SPAC Private Placement round.
8. Zoom Video Communications, Inc. (NASDAQ:ZM)
Revenue: $4.3 billion
Total Funding: $276 million
Zoom is a platform for video conferencing that enables users to communicate and work together from a distance and has raised a total of $276 million in funding over 9 rounds. The platform provides a variety of tools and services, such as recording capability, screen sharing, and virtual backgrounds. Since more people started using remote work and virtual communication during the COVID-19 pandemic, Zoom has grown in popularity. The company is funded by a total of 28 investors, with ARK Management and Base Partners being the most recent investors.
7. Snap Inc. (NYSE:SNAP)
Revenue: $4.6 billion
Total Funding: $4.9 billion
Snap Inc. (NYSE:SNAP) is one of the most widely used social networking platforms. The company describes itself as a camera startup, and has been around since 2011. 375 million people utilize the company's services every day. 70% of Snap Inc. (NYSE:SNAP)'s revenue comes from North America, which accounts for nearly all of its advertising revenue, and it has raised a total of $4.9 billion in funding with the help of 39 investors. The last investment in the company was by Alwaleed Bin Talal and Tencent.
6. Compass, Inc. (NYSE:COMP)
Revenue: $6 billion
Total Funding: $1.5 billion
Compass, Inc. (NYSE:COMP), a provider of real estate technology, offers a complete platform for purchasing, renting, and selling properties. For real estate agents, the business offers a variety of products and services, including a mobile app, customer relationship management software, and marketing tools. Since its creation in 2012, Compass, Inc. (NYSE:COMP) has swiftly expanded, now having more than 25,000 agents working for them. The company is funded by 25 investors and has earned a total of $1.5 billion over 10 rounds. The latest funding was from a Series G round in July 2019. SoftBank Vision Fund and Alumni Venture are the 2 most recent investors in the company.
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Disclosure: None. 25 largest VC-backed companies in the US in 2023 is originally published on Insider Monkey.
