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I disagree. The article isn't at all about the returns that people are getting on their investments. It's more about the fact that there's a normal lifecycle fo

I disagree. The article isn't at all about the returns that people are getting on their investments. It's more about the fact that there's a normal lifecycle for venture-backed companies that ends with going public or being acquired. That lifecycle seems to have stalled out with mega-companies staying private for long periods of time. It's still highly likely that Uber's investors will make tons of cash when the company finally decides to go public, whenever that is. It's just that the VC money is staying locked up much longer, so that it's not available to fund other early-stage start-ups.

jhoechtl 10y ago
I still don't get the hype aroumd Uber or why would they IPO as they are not profitable at all, prevent the creation of proper public transport and helped destroy the otherwise profitable taxi business and weakened the unions? http://www.wired.co.uk/article/uber-finances-losses-driverless-cars http://www.wired.co.uk/article/uber-finances-losses-driverle...
edblarney 10y ago
"It's more about the fact that there's a normal lifecycle for venture-backed companies that ends with going public or being acquired. That lifecycle seems to have stalled out with mega-companies staying private for long periods of time." No. There is no 'normal'. There was X money going in Y coming out. Now there is 2X money going in, and still Y going out. It means a lower rate of return for those putting money in. As for 'money not available to fund other startups' - clearly it is - the charts show actual investment is still high.
- URSpider94 10y ago
  You are missing the fact that the amount of money tied up in the companies is growing. 2x is going in, x is coming ng out, but the missing x is still (mostly) in there tied up in unicorns. The rate of return is dropping, but not because the money is gone, just because it's taking longer to come back.
  - fourthark 10y ago
    If those untested valuations are correct.

jhoechtl 10y ago

I still don't get the hype aroumd Uber or why would they IPO as they are not profitable at all, prevent the creation of proper public transport and helped destroy the otherwise profitable taxi business and weakened the unions? http://www.wired.co.uk/article/uber-finances-losses-driverless-cars http://www.wired.co.uk/article/uber-finances-losses-driverle...

edblarney 10y ago

"It's more about the fact that there's a normal lifecycle for venture-backed companies that ends with going public or being acquired. That lifecycle seems to have stalled out with mega-companies staying private for long periods of time." No. There is no 'normal'. There was X money going in Y coming out. Now there is 2X money going in, and still Y going out. It means a lower rate of return for those putting money in. As for 'money not available to fund other startups' - clearly it is - the charts show actual investment is still high.

URSpider94 10y ago
You are missing the fact that the amount of money tied up in the companies is growing. 2x is going in, x is coming ng out, but the missing x is still (mostly) in there tied up in unicorns. The rate of return is dropping, but not because the money is gone, just because it's taking longer to come back.
- fourthark 10y ago
  If those untested valuations are correct.