New York Silicon Valley may encourage unicorns to grow for growth's sake. Wall Street is far less forgiving.
The recent flops of Peloton and SmileDirectClub in their trading debuts, the market struggles for Uber , Lyft and Slack and the shelving of the controversial WeWork initial public offering show that companies need profitable business models and not just sales growth and vague aspirational goals to succeed in the public markets. Now, market experts are wondering if Airbnb, the red-hot home sharing company that is currently valued at $35 billion, can change the story for unicorns.
Is Wall Street cooling to tech unicorns? 02:10Still, some experts think investors should remain extremely cautious when investing in startups."We are seeing a beginning of a correction, a back-to-sanity moment," said Megan Bent, managing partner at venture capital firm Harbinger Ventures."Vision alone is not enough to overcome weakness on the bottom line -- and revenue growth alone can't overcome weak corporate governance.
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Arbaeen2019 ❤