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The absolute bloodbath of VC funded companies with weak fundamentals is finally catching up. Peloton, Robinhood, WeWork, Opendoor, Clover health, and countless
by dmode 5y ago
The absolute bloodbath of VC funded companies with weak fundamentals is finally catching up. Peloton, Robinhood, WeWork, Opendoor, Clover health, and countless others with major layoffs, stock down 60-80%, no profitability or sustainable business model in sight.
My back of the envelope calculation suggests that over the last decade $200-300bn has been spent by VCs on startups, led by Softbank. And with very little to show for it. 95% of tech revenue, profit, and market cap is dominated by MSFT, Apple, Google, Facebook, and Amazon - companies that took very little to no VC funds.
Just makes me ask what a world with little VC influence will look like. Will most likely be more resolute companies and founders building more sustainable businesses who take on this big 5.
- paxys 5y agoThere is no "finally". VC-funded companies fail all the time. In fact most of them are expected to fail. You can find similar misses every year stretching back to the start of the industry. Similarly, there are companies which have gone public over the last year with spectacular businesses and sky-high valuations. And heck Peloton is still valued at $12B+. The VCs are all fine.