Tag Archives: #venture capital

At the end of startups-on-steroids era

In January 2016 I wrote Time to do more with less, referring to the importance of being a RABBIT (Real Actual Business Building Interesting Tech).

In it, I cited the new funding reality as predicted by Salesforce CEO Marc Benioff and investor Bill Gurley, among many others, who believed that 2016 would be the year that tightening investment would prevent  many unicorns from raising funds based on their last round valuation and bringing a new term into the tech lexicon — unicorpse.

As the walrus said, the time has come and the bell is tolling.Unicorn_single

Image source: here

The indulgent years of cheap capital and billions invested on the basis of a great story, sans profit or even revenue, are over as investors sink ever deeper into reality and the old ways of valuing companies are once again in vogue.

Storied investor Bill Gurley issued a warning to unicorn investors in a lengthy essay posted on his personal blog. It is a must-read for all those in the startup ecosystem, not just investors, and includes links to other articles that bring the picture into sharp focus. His summation at the end is masterful. Continue reading At the end of startups-on-steroids era