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One potential issue in the B2B space is how dependent (or not) these companies are on other non-profitable companies for their revenue. If all of these yet-to-b
by qqqwerty 8y ago
One potential issue in the B2B space is how dependent (or not) these companies are on other non-profitable companies for their revenue. If all of these yet-to-be-profitable unicorns are selling to other profit-challenged vc funded startups, than that could cause some problems if VC's pull back.
I think interest rates play a key role here. I was expecting rates to rise more, but it seems like the Fed is getting nervous and pausing rate hikes. So we may end up in a semi-permanent low interest rate environment, which should keep the VC money flowing for now. So at this point, I am not really sure what to expect.
- nytesky 8y agoThis was exactly the problem during dot.com. I worked in optical networks and we all scoffed at Web business as vapor ware. But when dots went bust demand for bandwidth plummeted and optical networking cratered soon after.
- hopler 8y agoGlobal Crossing still owes my company money for work I did for them!