The Ultimate way to find Stock Unicorns!

Updated: Jun 17, 2020


Which companies are standing in line to become the next big tech sensation?


Spotting the next diamond in the rough is every investors dream. After all, a start-up with blue sky opportunity and the prospects of year-on-year growth would be enough to capture anyone’s attention.


What’s more, amid a market where technology is increasingly being recognised as fundamental to the new-age economy, the competition to be recognised is pushing more and more companies to innovate.


Often referred to as unicorns, start-up companies that pass US$1bn valuations have enjoyed a long history of success.


Consider Alphabet (GOOGL) and Facebook (FB) as two of the highest-profile unicorns to list on the NASDAQ. It’s no wonder every other tech company wants to follow in their footsteps.

Finding the next unicorn is no easy task. Even then, gaining access to invest in one of these opportunities is even more difficult.


Nonetheless, being able to identify these companies is a vital aspect of foreseeing the trends that are likely to not only propel these stocks to sky-high valuations, but set the tone for other themes and companies to follow suit.


We’ve identified three companies that we believe have great future potential to become the next tech unicorns.

Capsule

Equity Raised: US$270m

Estimated 2019 revenue: US$100m

Lead investors: TCV, Glade Brook Capital, M13, G Squared, Thrive Capital

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Capsule, a digital pharmacy business, allows consumers to order and schedule free delivery of prescription medicine within two hours via its digital app or text messaging.


Its software also provides customers with information on prescription medicines, refills and alternate drugs, as well as access to speak with a pharmacist via text, call or secure chat.

The business has sought to tap into the online pharmacy theme, where competitors are all vying for as much as US$333bn in prescription drug expenditure.


While Capsule’s operations have been limited to New York City thus far, the company has seen significant growth in its home market. Its customer base consists of 60,000 customers. Now, however, Capsule has its eyes set further afield.


Capsule raised US$200m in September last year, hoping to expand into other cities over the coming 18 to 36 months. Flush with cash, the start-up is currently navigating the pharmacy license landscape.


The impact of COVID-19 has all but raised the urgency for the company’s expansion plans, with more and more consumers now seeking out digital methods of fulfilling their prescriptions.


Capsule emerges as a competitor to the likes of CVS Health, Walgreens and Amazon’s PillPack. The latter was acquired in 2018 for US$753m, at the same time Capsule was valued at just US$110m.