The high number of billion-dollar start-ups, or "unicorns," is creating opportunities for other new enterprises that could also hit the jackpot, Trend Hunter CEO Jeremy Gutsche said Wednesday.
"Large innovation actually creates ripples of opportunity," Gutsche said on CNBC's "Squawk Alley." "If you study that splash you could see the patterns of opportunity. If I was looking at Snapchat, I would actually look at Facebook."
Gutsche said Facebook paved the way for Snapchat by creating a market for people who do not want their pictures or videos archived, for example. The tech giant also created an opportunity for Instagram, as the demand for a more artistic platform for pictures rose.
Nevertheless, the tech start-up market will see a correction, he said. "There is an [irrational] exuberance that goes on here. There will be a couple of companies that survive and make it through it; maybe a company like Uber," he said.
That car service behemoth is valued at over $40 billion and has set up shop all over the world.