SoCalTech.com reported Thursday that a study by the University of Southern California’s Marshall School of Business revealed Los Angeles is home to 5 percent of all the “unicorn,” or high-value start-up companies. Silicon Valley tops the list at 39 percent, followed by New York (9 percent), Beijing (6 percent) and Los Angeles.

The study’s authors said that the presence of unicorn firms signals the creation of new wealth and embodies radical innovation and the potential for disruptive market change. The school said the study considered companies as a “unicorn” if they exceeded a value of $1 billion at some point by the end of 2015.