Is the tech bubble about to pop?
By Erin Griffith.
A year ago, investors clamored to get a piece of hot tech startups like Zenefits and Snapchat. This magazine even argued that it was unfair that regular investors couldn’t access the world’s fastest-growing private companies.
Today those investors are probably happy they never had the chance. Each day there’s a new report casting gloom on Silicon Valley’s herd of magical billion-dollar “unicorn” startups: missed targets at Zenefits, share markdowns at Snapchat, a cash crunch at Jet, an executive exodus at Rent the Runway. Dropbox faces doubts about its revenue potential. Theranos is losing business deals. And don’t forget WeWork’s highly risky real estate deals, and unrealized revenue projections at Lyft. Flipboard failed to find a buyer. Square SQ -1.82% priced its IPO underwater. Zirtual and Homejoy—not unicorns, but highly valued and highly funded all the same—abruptly shut down.
Read more at Fortune.