Unicorn Startups in the People's Republic of China (PRC): Specialization, Success Factors and Territorial Distribution

In recent years, the People's Republic of China (PRC) has emerged as a global leader in the number of unicorn startups. Understanding the factors that contribute to the success of companies with a market capitalisation exceeding one billion dollars is a critical task for analysing the innovative and economic processes in China. The aim of this study is to analyse the factors and strategies that enable unicorn startups to succeed in China, as well as to examine their territorial distribution and specialisation. This study employs data from various sources, including platforms such as CB Insights and Crunchbase. The research includes a quantitative analysis of the investment volumes received by unicorn startups, allowing for an assessment of their developmental dynamics at various stages. A comparative method is applied to study the geographical and sectoral distribution of unicorn startups in China, which enables the identification of key regions of concentration and the peculiarities of regional development. These aspects facilitate a deeper comprehension of the structure and mechanisms of China’s innovative ecosystem. Initial findings indicate that unicorn startups in China, which receive substantial government support, are leaders in the field of high technology. Additionally, foreign investors play a significant role in financing and developing these companies. The findings of this study will enable economists to further comprehend the contributions of unicorn startups to China's technological advancement and to explore the mechanisms of innovative activity. Keywords: unicorn startups, PRC, innovation, venture capital, government support.