A unicorn company, or unicorn startup, is a private company with a valuation over $1 billion. CBInsights regularly releases a list of unicorns. As of May 2021, there are 654 companies in total on the list. We look at their naming and domain name choices.
Over 80% of all unicorns operate on a domain name with the .com extension. It is very common for startups to launch on compromise names and later on upgrade their domain name to match their brand name, often on the .com extension. There are many reasons for that but very shortly put – customers in pretty much any sector, any country love simplicity. It is interesting to note some companies that are focused on more local markets (like Doctolib in France), are listed with their local domain extensions – so doctolib.fr. A quick check will show you that the business owns the .com for their brand as well, so the statistics below are likely even more favorable to the .com extension.
Let’s have a look at how valuation spreads depending on the domain extension. The 87.3% of unicorns operating on .com domain names account for $1,954 Billion in valuation, or over 91% of the total valuation of all businesses put together.