Everyone who is inside of an expanding bubble can't imagine another world where the bubble collapses on them. It's unimaginable because they haven't lived through it.
This is a short interpretation of the quote. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Curabitur nisl mi, vestibulum quis ligula vel, feugiat finibus risus. Integer quam ligula, consectetur eget ante et, posuere laoreet erat.
This is a more detailed analysis of the quote. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Curabitur nisl mi, vestibulum quis ligula vel, feugiat finibus risus. Integer quam ligula, consectetur eget ante et, posuere laoreet erat. Aenean sit amet erat sed elit consectetur tincidunt. Praesent sed quam placerat, egestas magna a, vestibulum nisi. Proin cursus elit lorem, in laoreet tellus tristique eu. Nunc vel tortor luctus, venenatis lectus sit amet, ultricies velit. Proin tincidunt hendrerit elit nec sagittis. Donec ut dictum risus.
Etiam sollicitudin magna vitae neque efficitur, in ullamcorper nibh tempus. Aenean laoreet facilisis ex sit amet vehicula. Vestibulum placerat velit in eleifend feugiat. Nullam vulputate sed odio vel vestibulum. Etiam pellentesque, arcu sed accumsan aliquet, risus neque interdum mauris, non vulputate nulla purus a est. Duis lacus metus, scelerisque ut justo vitae, dignissim ullamcorper massa. Duis tempor pharetra sagittis. Nam et aliquet metus.eet erat.
A lot of the philosophies of the businesses are just 'we're interested in getting customers now and if we're losing money with each customer now that's okay because we have this huge hoard of venture capital that we can subsidise the operation with and once we have the required number of tens of millions of customers and we drive our competitors out of business, then we can start to raise prices and become a proper business.'
For venture capital, one of the original principles is people you want to invest in are people who've done it before with someone else's money. Not people who've just came out of business school.
If you have money draining out of the public equity markets, that inevitably affects the private equity market. They cannot exist going in different directions because somehow that will rent the fabric of the universe. It's just not permitted that that happens. Obviously there can be anomalies for brief periods of time but it just can't happen forever.
How many of the unicorn companies are really prosaic businesses - like limousine services or renting rooms in your house? The original VC firms from the '70's made their money and established the reputation of their respective brands by leveraging big cleverness with small capital, not small cleverness with big capital, and that's what's going on with these unicorns. That has never worked and it won't work this time. It doesn't produce venture quality returns, and it never will.
Basically my point of view on unicorns is that private companies which have sky high valuations, it doesn't really mean anything in the real world until it's marked to market. And there's only two ways things get marked to market in venture capital: Either a company is acquired by another company for cash or marketable security, or it goes public, and then it has reporting requirements and then the market will determine the value.
I think mobile web enabled services can be great business but A): it doesn't apply to everything, I think the markets will ultimately get a bit fragmented when the crunch stars to happen. And the other thing is, B): it doesn't necessarily work with everything.
Subscribe and get notification from us