The Evolution Of Unicorn Investing

Large-cap firms outscale smaller peers, with 31% of $100 billion companies reaching $1 trillion valuations.

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Pixabay

A notable trend in today's market is the growing dominance of large companies, which continue to account for an increasing share of the U.S. investable market. Data suggests this may be justified, as larger firms are often more likely to reach the next stage of growth. Companies growing from $1 billion to $10 billion achieve that milestone about 8% of the time, while the success rates rise to 13% for growth from $10 billion to $100 billion and 31% for growth from $100 billion to $1 trillion. As more companies surpass the $1 trillion mark, the emergence of a $10 trillion company may occur sooner, and among more firms, than many investors expect.

Source: Coatue, The Business Week Graphic

This graph was produced by Lucas Juery, CFA, CFPⓇ and is not intended to provide financial advice.

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