‘There are going to be lots of dead unicorns’

next.ft.com

4 pointsboh4 comments

There won't be, at least not in the short or medium term. The fact is all these unicorn companies have a great deal of value in terms of goodwill, staff, patents, market share and userbase, and that value isn't going away even if the company is struggling to find a working business model. None of them will die - if they can't raise working capital they'll get bought.

I disagree. They won't get bought because VC will stay away from these companies.

the dot.com bust in ~2000 had lots of dead unicorns. Web van is a good example. It can and will happen again.

In the dot.com bubble the market for providing services online vanished, not just the companies. In the case of a lot of the headline collapses there still isn't anyone providing the service they tried to offer. It was too early for most businesses to make anything very useful.

That isn't the case now. These unicorns have proven there's demand , they just haven't figured out a way to monetize it.

Renumeration isn't paid in goodwill.

Reply on news.ycombinator.com