Unicorns Fade as Shrinking Valuations Limit IPO Prospects

A sharp reset in private market valuations has stripped numerous so-called unicorns of their status, making it harder for some startups to pursue their long-delayed initial public offerings.

Out of 128 closely held companies that achieved valuations at or above $1 billion as of 2021, nearly 90% were estimated to be valued lower in private trades, according to Forge Global, an alternative trading venue operator. About a third of the startups’ valuations in the group tracked by Forge dropped below $1 billion — the threshold to be considered a unicorn.

The slide shows the challenges for companies that raised ...