“What good is it to have a stable of unicorns if you don’t ever ride them?” This sentiment comes from Dan Primack, a reporter for Fortune, and highlights a trend emerging in Silicon Valley over the existence of Unicorns (startups valued at over $1 billion) in the tech industry. In his latest article, Primack opines that what’s happening is a lack of acceleration by these Unicorn companies towards the public market. This year could possibly be the slowest in terms of VC-backed tech companies going public (7 have IPO’ed this year).
And it’s not just the public markets that have Primack concerned, but also the M&A side as well. With such inflated valuations, corporate executives are encountering opposition because of what’s perceived to be artificially inflated prices. On the flip side, founders aren’t left blameless either as some are thinking that since they have the next “hot” thing, there’s always someone else out there like Fidelity or Wellington to write them a check to fund the next round.
Who’s going to blink first?
>> Something is rotting under Silicon Valley (Fortune.com)