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The Unicorns Are Zombies

10 pointsby ioblomov3 months ago

2 comments

ChuckMcM3 months ago
This is an interesting Matt Levine piece which observes this new thing which is a &#x27;Zombie Unicorn.&#x27; I&#x27;ve seen a lot of zombie startups, they get their seed funding and a couple of rounds but then fail to &quot;take off&quot; so they sit there, breaking even or maybe making a bit of profit (but not enough to be sold at a profit). VC&#x27;s hate them, they can&#x27;t cash out, they can&#x27;t write them off, and their &#x27;value&#x27; isn&#x27;t something they can pay their own rent with (like they do with fees on their uninvested funds). But startups that were valued over a billion dollars becoming zombies is a new thing. And the phrase &#x27;unicorpse&#x27; (describing a dead unicorn) is another.<p>That there is all this capital that is worth over a trillion dollars &quot;on the books&quot; but, in the case of zombies actually worth much much less than that, is the kind of overhang that when it corrects really makes a lot of noise.
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ioblomov3 months ago
<a href="https:&#x2F;&#x2F;archive.ph&#x2F;r9CCA" rel="nofollow">https:&#x2F;&#x2F;archive.ph&#x2F;r9CCA</a>