Startup Outlook 2023

Based on Desktop Research

2023 Startup industry predictions by Dream Factory Journal

• According to the article, 3 industries that will be trending in 2023 include: Sustainability / Climate Tech, AI and
Health Tech.
• Sustainability / Climate Tech: driven by the needs of creative solution for sustainability against climate change, energy
crisis and food sustainability.
• AI: the virality of the industry caused by ChatGPT’s “success” – the subsequent need for AI regulation to make it better,
safer and more ethical as humans will rely on it more.
• Health Tech: healthcare crisis are most nation’s pain points as they could not figure out a sustainable model for it.
Additionally, access to healthcare are still asymmetrical and potentially solvable by its digitization.

Source: LinkedIn
Valuation Decline

• The Top 12 CB Insight Unicorn valuations of US$765 billion in 2021, since then US$262 billion has been wiped off their
valuations, with three Fintech Unicorns deleted from the top 12 giving 48% reduction in valuations.
• Changes in Fintech Startup Valuations as of Jan-23:
• Stripe - valuation was US$95 billion in 2021, now at US$63 billion
• Klarna - US$46 billion in 2021, now at US$6.7 billion - 84% decline, deleted from top 12 list
• NuBank - US$45 billion, deleted, now a public company with Nasdaq US$17 billion market cap
• CheckOut com - US$11 billion down 73% from US$40 billion in early 2022
• Revolut - US$33 billion unchanged
• FTX – gone bust

• Other changes in the Top 12 Unicorns as of Jan-23:

• SpaceX – increased to US$137 billion from US$127 billion 8% increase
• Bytedance (TikTok) – down to US$105-200 billion from US$ 400 billion in 2021
• SHEIN – down to US$75 billion from US$100 billion in 2022
• Canva down to US$26 billion from US$40 billion in 2021
• Databricks down to US$31 billion from US$38 billion in 2021
• Instacart down to US$10 billion from $39 billion in early 2022

• CB Insights lists 203 Unicorns had peak valuations US$3,895 billion in mid-2021. The Top 12 Unicorns have already dropped
48% in valuation (plus 3 deleted), this could be more realistic valuation number of US$2,025 billion – that’s US$1,870 billion
drop in valuations
Valuation Decline (cont.)