The Next Wave of ‘Unicorn’ Start-Ups

Uber and Airbnb were part of an early generation of tech start-ups that quickly reached $1 billion in value. The up-and-coming generation is looking very different.

Comments: 7

  1. The fact that VC's and others in the financial community are still drooling over Uber just goes to show how much stupid money there still is out there. Uber is a company that not only has never come close to making a profit, but they lost $3-4 billion during the 2018 fiscal year, and have a business model with no obvious path to profitability (people use them because they're cheaper than taxis, but the only way to because profitable is to raise fares, at which point people will stop using them).

  2. @Matt Fair point, but valuations on most startups are based on perceptions of future earnings. Tesla has only had one profitable quarter, its last. Prior it was hemorrhaging huge sums every quarter. Amazon lost money for years, until it didn't. Plus when some companies go public, those holding the private stock really don't care what happens in five years. Their business model is mostly seizing the first opportunity to cash out and let the suckers hold the bag when the fundamentals clearly don't justify the P/E ratio. Plus if you invest early in these "unicorns" you only have to hit on one to cover the complete loss of ten others, and then some. But the whole thing is a racket, individual investors can't outsmart the market, especially now with the computer algorithms responding to minor fluctuations in price. (The system worked fine when stocks were priced in eighths rather than decimal hundredths even though the dollar was worth less back then . . .) Or as they say, "if you sit down to play poker and don't know who the fish is . . ."

  3. @drdeanster "if you sit down to play poker and don't know who the fish is . . ." I did not know they said that. If I meet them, I'll be ready with a retort.

  4. Glad that some of these startups are serving millennial women, but disheartened to see that the VC firms investing are mostly run by men. If VC wants to get serious about the future of CPG that need to have more women on the investing team that can spot these unicorns from a mile away.

  5. What about US tech unicorns that are NOT in Silicon Valley, T like Tresata in Charlotte NC?

  6. Let us not forget Theranos.

  7. The end of innovation? Really? Perhaps you are working in the wrong sector, Erin