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I think all of this devaluation for unicorns is a plus for the capital markets. What we are seeing is that VC's have overvalued companies simply because they ha
by WheelsAtLarge 7y ago
I think all of this devaluation for unicorns is a plus for the capital markets. What we are seeing is that VC's have overvalued companies simply because they have fallen into a feedback loop that raises companies value just because someone else invested at a certain valuation.
My suspicion is that VC's will start to evaluate companies at a more realistic value and will force new companies to be more realistic about whether there's value in the area they are trying to succeed in therefore giving strength to the market for startups.
The downside is that it's going to get harder for startups to get financing. But as always, if you have a good idea and have the perseverance to succeed then you will.