Shenzhen outpaced the rest of China to become the country’s top creator of unicorns in 2024, minting 13 new billion-dollar startups. The city’s newcomers represent exactly one-quarter of all new unicorns nationwide, according to a research report released Friday at the annual China (Shenzhen) Unicorn Enterprise Conference.

Of the 372 unicorns active across China last year, Shenzhen accounted for 42, with a combined valuation of US$159.9 billion. Averaging US$3.71 billion each, these companies primarily operate in frontier technologies.

The leading sectors were integrated circuits and robotics, with notable newcomers like Honor and Shenzhen Yinwang Intelligent Technology emerging from the Huawei ecosystem.

Underscoring their technological depth, each company held an average of 141 granted patents and had another 151 applications pending.

More than 80% of the 42 unicorns are global players, having built overseas factories and marketing networks. For example, Sunwoda Mobility Energy Technology Co. Ltd. is constructing a battery plant in Hungary to serve Europe’s electric vehicle market.

Nanshan District led the city’s districts with 45% of the city’s total (20 unicorns), followed by Bao’an (7), Futian (6), Longgang (6), Guangming (2), and Longhua (1).

Nanshan and Futian dominated in terms of valuation. Nanshan’s unicorns were worth more than US$70 billion, accounting for 45% of the city’s total. Futian’s exceeded US$49 billion, accounting for 31%, buoyed by super-unicorns Honor and on-demand delivery giant Lalamove.

The global unicorn count rose to 1,212 in 2024, but the pace of growth slowed. While the total number of companies increased slightly, the year saw only 135 newcomers — 10 fewer than the year prior.

These companies were spread across 45 sectors, though the landscape was dominated by five key industries. Fintech led by a wide margin with 180 unicorns, followed by enterprise digital operations (124), digital health (84), integrated circuits (68), and artificial intelligence (67).

The Hurun Research Institute’s Global Unicorn Index 2025, released last month, placed Shenzhen sixth worldwide with 37 unicorns, ranking the city as China’s fastest-growing hub for such companies.

The index ranks startups from around the world that were founded after 2000, valued at US$1 billion or more, and not yet listed on a public exchange. The U.S. was in a league of its own with 758 unicorns — 50% of the world’s total. China followed with 343 unicorns.