A billion-plus dollar pre-IPO tech start-up (or unicorn) was, only a few years ago, something of a myth.

Now, however, unicorns seem to be popping up everywhere including fashion (Farfetch has just raised $86 million valuing the company at $1 billion).

In 2013 there were 38 tech unicorns is total, today there are more than 80!

But some have voiced concerns that the growing number of unicorns may be indicative of a second dot-com bubble – especially since a fairly high percentage of them are yet to generate revenue, yet alone profit.

So why are there so many of them? And should we be worried?

One reason behind the increase in unicorns is surely the introduction and adoption of the concept itself.

Stewart Butterfield, founder of software unicorn Slack, speaking to Fortune said that, although the one billion figure is somewhat “arbitrary”, “it does make a difference psychologically […] it’s the psychological threshold for potential customers, employees, and the press.”

The idea, then, is that people – founders, investors, employees, and journalists – want to be involved with a unicorn, and the collective desire to create them does exactly that.

Another reason is simply that several major technological landmarks – including the rapid proliferation of smartphones and broadband – have been reached in the last few years, and this has opened up a wealth of opportunities that were previously inconceivable.

A lot of unicorns are capitalising on these recent developments, and many will become successful and stable in the long-term. As such, the increase of billion-plus dollar start-ups may be less a bubble, more a genuine and legitimate area of economic growth.

So the question on everybody’s lips is: what will tomorrow’s successful fashion tech unicorns look like?

Despite the fact that there are still very few fashion-tech unicorns (Farfetch being one rare example), I believe that there is much scope for others, particularly those starting out from my home, London. 

Sillicon Valley is famous for the tech scene and New York has many fashion tech startups, but Europe, and in particular London, is increasingly seen as the number one place to set up tech led fashion businesses by entrepreneurs and investors.

To date there has still been little disruption in fashion, but with the proliferation of mobile shopping as well as an increase in fashion companies’ interest in selling online (even Chanel is planning an e-commerce launch in 2016) this is the moment for fashion tech innovation.

The recent IPO of Zalando and the merger of Net-a-porter with Yoox indicate both the potential for opportunity as well as the fierce competition in this space.

And many fashion tech companies are showing promise, such as Lyst, Thread and Notonthehighstreet.

The main challenge for startups, unicorns and larger entities such as Yoox Net-a-Porter is to keep innovating to stand out from the crowd and stay ahead of the game whilst focusing on execution and growth to ensure that they remain a lasting brand, the customers’ ‘go-to’ site.

I certainly expect to see more activity in this sector and with more unicorns emerging in the next few years.

And this is a good thing, as it means plenty of opportunities for great talent, as well as entrepreneurs and investors.

Who do you think will be the next fashion tech unicorn? Email me your thoughts.