The Impact of Riders on the Valuation of "Unicorn" Companies

Abstract

With the development of the times, industry terms such as big data and artificial intelligence have become familiar, and with them the emergence of "unicorn" companies have also been given the opportunity to develop and the corresponding challenges, while the proliferation of "unicorn" companies has brought about a rigorous the proliferation of 'unicorn' companies brings with it the issue of rigorous valuation. In reports on unicorn companies published by major research institutions, Ant Group has led the way for the last five years, jumping from a valuation of US$75 billion to US$150 billion, making it a super unicorn. Whether its value actually matches its valuation, and which factors play a key role in this, and how, needs to be further explored: this paper takes Ant Group as the subject of this study, starting with a brief overview of 'unicorn' companies and Ant Group companies, and then introducing traditional valuation methods --The paper also examines the different types of riders in different financing rounds in the financing process of Unicorn companies, and finally analyses the impact mechanism and optimization of different riders on the valuation of Unicorn companies.