Where is it Easiest to Create a Unicorn Company in 2025

A unicorn company is a privately-held startup valued at over $1 billion. The number of such companies has surged in the 2020s, reflecting the rapid development of technological ecosystems around the world. Investors and founders need to understand where the most favorable conditions for "growing" new unicorns exist today. In this article, we will analyze the latest data (for 2024–2025) regarding the number of unicorns, availability of venture capital, quality of startup infrastructure, tax and legal environments, level of digitization, role of investors, and key macroeconomic indicators. The goal is to determine where it will be easiest and most cost-effective to create a unicorn startup in 2025, relying on fundamental investment factors.

Number of Unicorns by Country: Where Are They Most Concentrated?

The first indicator of ecosystem development is the number of existing unicorns within a country. At the start of 2024, there were over 1,450 unicorns globally. By mid-2024, this number reached approximately 1,658, although the growth rate is slowing (with only 127 new unicorns globally in 2024 compared to 229 in 2023). These "billion-dollar" startups are concentrated in just a few countries, with the top 15 countries accounting for around 97% of all unicorns.

The United States is the undeniable leader, with approximately 702 unicorn companies, representing nearly half of the global total. The U.S. outpaces the second-ranked country, China (about 302 unicorns), by more than twofold. India ranks third in terms of unicorns (119 companies) and has seen a rapid expansion of its startup scene in recent years. Following are major European and other innovative economies: the United Kingdom (104 unicorns), France (34), and Germany (29).

In addition to these leading nations, the top 20 countries by number of billion-dollar startups include: Israel (24), Brazil (24), Canada (20), South Korea (16), Argentina (14), and Singapore (14). Rounding out the top 20 are Japan (12 unicorns), Finland (9), Indonesia (9), and several countries with 8 unicorns each: Australia, Mexico, Poland, Saudi Arabia, and Sweden. This distribution suggests that the most fertile ground for the emergence of unicorns is currently centered in the U.S. and China, as well as in several technologically developed countries in Europe, Asia, and North America.

[Note: The term "unicorn" is applied only to private companies valued at over $1 billion; many of the aforementioned startups may later go public or be acquired, after which they would exit the unicorn category. The data considers only currently private companies at the time of valuation.]

Venture Capital: Access to Financing and Investment Activity

Access to venture capital is a critical factor for a startup's growth to a billion-dollar valuation. Countries leading in the number of unicorns typically also attract the largest volumes of venture investments. At the end of 2023, the U.S. maintained its status as the largest venture market, with American startups raising around $170 billion in funding (the lowest figure since 2017 but still around 50% of the global total). In comparison, China, the second-largest market, showed signs of recovery, raising an estimated $60–70 billion in venture investments for 2023, significantly less than the U.S.

The trends in early 2024 confirm this landscape. In the first half of 2024, American startups collectively raised $89.4 billion in VC investments—four times more than Chinese startups ($22.9 billion). The United Kingdom, with the most developed venture ecosystem in Europe, ranked third globally in venture investment volume ($9.4 billion during the same period). India also confidently held its ground, receiving about $7 billion in venture capital (4th place), while France ($4.3 billion) and Germany (~$4.1 billion) made significant contributions to the startup sector.

New regional players are also gaining attention. For instance, the United Arab Emirates (UAE) reached $2.5 billion in venture investments in 2024, becoming a leading hub in the Middle East. South Korea ($2.0 billion) and Singapore (~$1.9 billion) also demonstrate high investment activity, backed by government strategies for technology business development.

Overall, the geography of venture capital correlates with the number of unicorns: the U.S. and China dominate, Europe (especially the U.K., France, Germany, and Scandinavian countries) is increasing its share of global VC to ~19–20%, while Asian "tigers" (India, Singapore, South Korea) and wealthy Middle Eastern countries (UAE) are ramping up their startup investments. High access to venture financing allows promising companies to scale quickly and achieve a valuation of $1 billion or more.

Startup Ecosystem Infrastructure: Hubs, Accelerators, Talent

A robust startup ecosystem infrastructure is essential for the emergence of a unicorn—this includes a combination of technology parks, incubators, accelerators, mentors, as well as talent concentration and entrepreneurial culture. There is a strong concentration of these elements among global tech hubs. Not surprisingly, over half of all unicorns are located in just a few global cities. According to HSE research, 58.5% of unicorns are concentrated in the top 15 tech megacities worldwide. Key locations include San Francisco (Silicon Valley), New York, Beijing, Shanghai, London, Los Angeles, Boston, Bangalore, Berlin, Paris, Tel Aviv, among others. These cities offer a unique mix: proximity to top universities and research centers, a presence of successful entrepreneurial mentors, and developed communities of investors and startup accelerators.

For instance, San Francisco (Bay Area) remains the global unicorn capital—with around 190 such companies relying on the Silicon Valley ecosystem. New York has approximately 130+ unicorns (a financial and media hub), while Beijing boasts over 75–80 unicorns (a leading center in China). These cities come to mind first when discussing world-class accelerators (such as Y Combinator in California or TechStars in New York), cutting-edge startup building practices, and access to major venture funds.

In addition to megacities, many countries are developing national technology parks and hubs. Israel hosts a network of incubators supported by the government and has a highly concentrated R&D cluster in Tel Aviv and Haifa. Singapore has created the One North tech park and attracts international accelerators. France has launched Europe’s largest campus-incubator, Station F (in Paris). India is forming dozens of tech parks in Bangalore, Hyderabad, and Mumbai. Canada is consolidating startups in Toronto and Vancouver (research hubs). The existence of such focal points is critical: the concentration of specialists, mentors, and investors in one place significantly enhances a startup's chances of becoming a unicorn.

Tax and Legal Environment for Technology Companies

Tax conditions and regulations largely define how easily a startup can grow into a large company. A favorable legal environment includes ease of business registration, protection of intellectual property rights, flexibility in labor legislation, and the availability of special incentives for the tech sector. Countries competing for talent and capital offer various incentives:

• Singapore is known for its low taxes and pro-business policies. For new startups, it has a Startup Tax Exemption program that provides full tax relief on the first approximately SGD 100,000 of profit for three years. This significantly reduces the financial burden in the early stages and attracts founders from around the globe. Additionally, corporate tax in Singapore is fixed at 17% and is one of the lowest among developed economies.

• In the U.S., despite its leading innovation culture, the tax burden is higher. The federal corporate tax rate is around 21%, plus state taxes. However, many states offer incentives for tech companies—California, Texas, and others have tax credits and deductions for IT businesses. Delaware attracts startups with a simplified registration process and exemption from profit tax for companies operating outside the state. Overall, however, the tax environment in the U.S. remains complex and relatively expensive for businesses, which is partially offset by a large market and access to capital.

• The European Union and specific countries in Europe have improved conditions for startups through special regimes. For example, France actively supports tech companies: the government launched co-funding programs for innovation and provides tax incentives for startups (preferential taxation for investments in R&D, loans for small tech businesses, etc.). Moreover, France has streamlined labor laws for young companies (the French Tech regime). The U.K. offers investors in startups attractive tax deductions through EIS/SEIS schemes, stimulating the flow of venture capital into innovative firms. Germany and the Netherlands have introduced "startup visas" and reduced bureaucratic barriers for foreign founders. Overall, the European legal environment is becoming increasingly startup-oriented, although the level of regulation historically exceeds that of the U.S. or Asia.

• Other regions: In Israel, the government has been implementing the Yozma program (partnerships with venture funds) since the 1990s and sets preferential tax rates for export-oriented hi-tech companies. The UAE (Dubai, Abu Dhabi) attracts startups with the absence of profit tax and the establishment of free economic zones for IT businesses (100% foreign ownership, simplified licensing). China provides tax holidays and subsidies for high-tech startups in technology clusters (Shenzhen, Hangzhou), although the overall legal environment in China is complicated by government control and localization requirements.

In addition to taxes, legal protection for innovations is crucial—strong judicial systems, intellectual property protection, and transparent business regulations. In leading countries (the U.S., Western Europe, Singapore, Israel), there is relatively high predictability of legislation and investor rights protection, which reduces risks for unicorn companies. In countries with less developed legal fields, startups find it more challenging to attract significant investments due to concerns over asset protection.

Digitization and Government Support for Innovations

The level of digitization in society and direct government measures to support innovations play a significant role in creating conditions for unicorns. This involves how actively the government itself implements new technologies and stimulates the tech business. Several examples illustrate the importance of this factor:

• National Programs for Developing Unicorns. Several governments are directly targeting the "growth" of large startups. For instance, the European Union launched the EIC ScalingUp initiative in 2023—a fund and accelerator program aimed at generating 120 new unicorns by 2027. South Korea has implemented the Baby Unicorn 200 program: since 2020, the Ministry of SMEs and Startups selects 200 promising companies annually, providing grants and mentorship support to accelerate their growth to unicorn status. Such projects demonstrate direct government involvement in creating "star" companies.

• Government Investments in Technology. In leading countries for unicorns, governments themselves are major investors in innovations. China channels billions into strategic startups (AI, new energy technologies, etc.) through state funds and structures (for example, the National Semiconductor Industry Investment Fund). Singapore allocates significant resources through funds like Temasek and GIC to tech companies worldwide while also funding local R&D centers. Israel spends a record ~4.5–5% of GDP on R&D—one of the highest rates globally—creating a continuous flow of innovations and talents from universities and the military (almost every major tech company in Israel received a government grant at early stages). In the U.S., funding is provided through programs like SBIR (grants for high-tech small businesses) and agencies like DARPA and NASA—many unicorns have emerged based on these governmental investments in fundamental technologies (for example, SpaceX collaborates with NASA, and OpenAI has received NSF grants, etc.).

• Digital Government and Society. A high level of digitalization in the population means a ready market for new technologies. In countries like South Korea and Singapore, nearly 100% of the population uses the internet, with extensive e-government and smart services—this creates demand for innovative solutions and ensures that the government appreciates the value of new technologies. Estonia, although a small country, has become a benchmark for e-government: the widespread use of digital services and ID cards has led to the emergence of several unicorns (Skype, Wise) despite a small market—thanks to global orientation and government support. The UAE appointed a separate minister for artificial intelligence and implements the "Smart Dubai" strategy, attracting cutting-edge startups from around the world. France is federally introducing AI and blockchain technologies into citizen services, positioning itself as a leader in the digital transformation of government administration—such an approach enhances the country's image in the eyes of the IT business and creates additional opportunities for local startups.

• Digital Infrastructure for Connectivity and Data. For tech companies, the availability of modern networks (broadband internet, 5G, data centers) is essential. The U.S., Europe, and China have well-developed internet infrastructure, enabling seamless scaling of digital services. South Korea is renowned for having the fastest internet and a high smartphone penetration rate—no wonder unicorns in online gaming and content emerge there. Governments that invest in digital infrastructure create a stronghold for startups (for instance, Ireland has attracted data centers and IT giants with low taxes and a solid network infrastructure, contributing to the growth of local tech firms).

In summary, a proactive government stance—from digital nation strategies to targeted funds—significantly increases the chances of unicorn emergence. In places where authorities view tech companies as economic drivers and partners, the startup ecosystem flourishes considerably more.

The Role of Private and Institutional Investors

The presence of diverse types of investors and the depth of the investment market in a country is a key element for unicorn success. In developed ecosystems, a full spectrum of financial players is involved:

• Private Venture Funds. Classic VC funds (managing the capital of private investors, corporations, and pension funds) are foundational for startup financing. The U.S. has over 3,400 venture firms, which in 2023 engaged in over 13,600 deals totaling $170+ billion. Similarly, dozens of large VC funds focused on the tech sector have emerged in China and India. The maturity of the venture industry is directly correlated with the number of unicorns: where there are many professional investors, startups find it easier to secure large financing rounds (Series A, B, C, etc.) necessary to reach billion-dollar valuations.

• Angels and Accelerators. At the early stage, business angels (private investors) and accelerators play a huge role. In Silicon Valley, Israeli, and European tech communities, thousands of angels invest money and expertise into nascent projects. Notable accelerators (Y Combinator, 500 Startups, TechStars, etc.) have launched hundreds of companies, some of which became unicorns (Dropbox, Airbnb, Stripe, and many others passed through these accelerators). Countries where angel investment culture is well-developed (the U.S., U.K., Canada, Israel) provide startups with "fuel" at the riskiest stage, increasing the funnel of potential unicorns.

• Corporate Investors. Corporate Venture Capital (CVC)—investment divisions of large corporations—have become significant players. Tech giants (Google, Microsoft, Salesforce, Alibaba, Samsung, etc.) regularly invest in startups, acquiring minority stakes. This is mutually beneficial: startups receive funds and resources, while corporations gain access to innovations. In 2022–2023, amid a downturn in traditional VC, the share of corporate venture capital grew—corporate funds remained more stable and continued financing deals, even as some hedge funds and later-stage investors exited the market. In the U.S., corporate investors participated in approximately 56% of venture deals (according to NVCA), and 40% in Europe. Their presence is particularly noticeable in sectors like AI, biotech, and fintech—where large companies are keen on strategic startups.

• Government and Semi-Government Funds. Sovereign funds from wealthy countries and governmental development institutions are increasingly influencing the unicorn ecosystem. For instance, the Japan-Saudi Arabia SoftBank Vision Fund (with $100 billion under management) has invested in hundreds of startups worldwide, becoming a "unicorn factory" and significantly raising valuations (WeWork, Uber, Didi, etc.). The sovereign fund of Saudi Arabia, PIF, and the UAE fund, Mubadala, have invested billions in tech companies (including American and European ones), supporting high valuations and project development. As a result of such inflows, several startups achieved "unicorn" status much faster. Conversely, the exit of large crossover funds may slow the market; for example, in 2021, funds like Tiger Global, Coatue, Temasek, and SoftBank participated in deals totaling $148 billion, while in 2023, they only invested approximately $34 billion, leading to a decrease in the number of new unicorns. Nonetheless, in 2023–2024, corporate and government investors have taken the stage, partly compensating for the decline in late-stage venture capital. This restructuring of the investment landscape means it is crucial for startups to attract funding from diverse sources—ranging from traditional VC to strategic and government funds.

In summary, countries with a rich pool of investors—from angels to large funds—provide startups with a comprehensive "financial lift." The U.S. stands out for its depth of capital markets: both pension funds invest in venture capital through VC firms, and there are numerous accelerators and significant government programs. In China, both government capital and corporate giants (BAT—Baidu, Alibaba, Tencent) invest in hundreds of startups. In the U.K. and Singapore, state co-investing with private funds operates (through the British Business Bank, Temasek, etc.). The synergy between private and institutional investors creates stable conditions for the emergence of new unicorns.

Macroeconomic Indicators: Economy Size, Education, Demographics

Finally, a country's macroeconomic foundation largely determines its potential for fostering large tech companies. Key factors include the size of the economy (GDP), level of wealth, quality of education and human capital, and demographic characteristics. Let’s explore their influence:

• GDP and Market Capacity: the larger the economy, the broader the domestic market and more accessible the resources. The U.S., with a GDP of over $25 trillion, is the world's largest market, providing startups with an opportunity to scale "at home" to enormous valuations before entering international markets. China (GDP $15 trillion) with over a billion consumers, has nurtured giant platforms that have become unicorns (e.g., Bytedance, Shein). In comparison, the economies of the U.K. ($2.7 trillion) and India (~$3.4 trillion) are considerably smaller, but India benefits from its colossal population (1.4 billion)—even with a relatively low GDP per capita, demand for digital services is immense. A substantial domestic market enables startups to achieve $1 billion in revenue/valuation more quickly, relying on local users. Furthermore, a large GDP means more capital in the financial system that can flow into venture investments.

• Education and Workforce: the level of education and skills directly affects innovation. Countries leading in unicorns have a high percentage of the population with higher education and advanced research. The U.S. and U.K. possess the top universities globally, generating a stream of startup founders and innovations (e.g., Stanford, MIT, Oxford, etc.). Israel leads in the percentage of engineers and scientists, largely due to universal technical training in the military and investment of ~5% of GDP in R&D. Canada and Germany attract talent through immigration visas for specialists. The quality of STEM education (science, technology, engineering, and mathematics) correlates with the emergence of tech startups. Additionally, a culture of entrepreneurship often originates in leading universities and research centers. The availability of "tech talent"—programmers, developers, scientists—in sufficient quantity is a necessary condition for forming unicorns (for example, Bangalore's success in India is attributed to its concentration of engineering talent).

• Demographics and Urbanization: a young and urban population is more receptive to new technologies and actively entrepreneurial. India, with a median age of ~28 years, has a vast community of young entrepreneurs and consumers of digital products—this creates a nourishing environment for startups in fintech, e-commerce, edtech, and more. Indonesia and Brazil are other examples of emerging markets with young populations, where their own unicorns have already emerged. At the same time, urbanization fosters the concentration of innovations: megacities attract ambitious youth from across the country. In China, talent migration to megacities (Beijing, Shenzhen) is directly tied to the boom in tech companies. The "youth" of a nation and a high level of internet penetration (smartphone adoption) create both demand and supply for the startup ecosystem.

• Macroeconomic Stability and Wealth: low inflation, predictable currency exchange rates, and overall economic stability are crucial for long-term investments in startups. For example, Switzerland and Singapore are known for stable economic policies, attracting international investors and companies (though in terms of unicorn numbers, they lag behind larger countries, the quality of conditions is excellent). A high income level (as seen in the U.S. and Western Europe) translates into purchasing power for technological innovations—this facilitates startups achieving significant sales and valuations.

Overall, macroeconomic indicators lay the groundwork: large, wealthy, and educated countries have the highest chances of nurturing numerous unicorns. However, the combination of factors is important—as Israel, despite its small market, compensates with a high human capital level and integration into the global economy, achieving remarkable results (#3 in the world for unicorns per capita). Conversely, in countries lacking talent or with small markets, startups often have to rely on exports and relocation to larger ecosystems for growth.

Top 20 Countries by Number of Unicorns and Their Investment Profiles

The table below summarizes the top 20 countries in the world by the number of unicorn companies (as of 2025)—indicating the approximate number of active unicorns and a brief overview of each country's investment climate:

Note: The number of unicorns is stated as of April 2025; the characteristics summarize the key factors influencing the investment attractiveness of these countries for startups (venture capital, market, government support, talent, etc.).

Conclusion: Where is it Easiest and Most Beneficial to Build a Unicorn in 2025

Analyzing all factors—from the number of successful predecessors to the availability of money and talent—leads to the conclusion that in 2025, the most favorable countries for creating a unicorn company are those that manage to combine market scale, developed startup ecosystems, and pro-innovation policies.

In the U.S., founders continue to have maximum opportunities: nearly half of the world's unicorns are concentrated here, vast venture capital, flexible legislation, and an unparalleled entrepreneurial culture. China offers a colossal market and generous investments; however, it is more suitable for domestic startups due to language and regulatory barriers. The United Kingdom and Western European countries (especially France, Germany, and Nordic economies) are creating ever-better conditions—a combined EU market, government incentives, and an expanding venture sector—hence London, Berlin, and Paris firmly enter the ranks of global top hubs.

Israel and Singapore stand out distinctly: although they are relatively small in size, their examples showcase that concentration of intellect, capital, and government support per capita can yield miraculous results—these countries have become "factories" for unicorns on a regional and global scale. India is rapidly catching up: a combination of demographics and an entrepreneurial spirit has already propelled it to 3rd place in unicorn count, and improvements in infrastructure will make it an even more robust incubator for large startups in the future.

Thus, an investor looking for the next "unicorn" and an entrepreneur planning to build a billion-dollar business should pay attention to countries with the most favorable ecosystems. Currently, these include primarily the U.S. (the tandem of the market and innovation #1), China (scale and government resources), the United Kingdom (the European venture center), Israel and Singapore (unique startup nations), as well as rising India, France, Germany, Canada, and South Korea. These jurisdictions possess all the "ingredients" for success—capital, talent, support, and demand—making the path to unicorn status the most realistic and economically justified. The final choice, of course, depends on the specifics of the project, but the fundamental investment factors clearly favor the aforementioned countries, which in 2025 are the most fertile ground for the emergence of new unicorn companies.