Danger in the Age of Unicorns
â€œI think youâ€™re going to see a lot of failure in 2015,â€ says Benchmark Capital partner Bill Gurley, who sits on Uberâ€™s board of directors. â€œIf youâ€™re a public company worth $3 billion and your stock trades down to $1 billion, you can survive it because you can still issue options to hire new employees, etc. â€‰If it happens when youâ€™re private, though, it becomes immediately harder to hire or to get incremental investment.â€
— The Age of Unicorns – Fortune
The vast amounts of money piling into the high-risk world of VC should scare the hell out of you. Especially if you have a pension that’s being invested in it. The need for vast returns is inflating company values, and it’s not sustainable. Something has to give.