Why is it in the news?

• Hurun Research Institute released the “Global Unicorn Index 2024,” ranking startups founded in the 2000s worldwide.

Key findings

• In 2023, India had 67 unicorn startups, down from 68 in 2022, ranking third globally. The USA led with 703 unicorns, followed by China with 340.
• India lacks unicorns in the Aerospace or Space Tech sector, with unicorns defined as privately held, venture-capital backed startups reaching a value of $1 billion.

More about the news

• The term “unicorn” was coined by venture capitalist Aileen Lee in 2013.
• Factors behind the decline of unicorns in India include a slowdown in the startup ecosystem due to insufficient investment and founders producing more offshore unicorns than within India.
• Lack of prudent steps to ensure business sustainability has led to uncontrolled growth, characterized by rapid depletion of cash reserves.
• Initiatives taken by India to promote startups include the Fund of Funds for Startups Scheme, income tax exemption for startups incorporated after April 1, 2016, and the National Startup Award to recognize and support startups.