...As of January 2022, the US had 2,800 public companies with annual revenues over $100 million—and 18,000 private companies of that size.
...From the investor or manager’s point of view, a portfolio of unicorns that might disrupt an industry is relatively more attractive when the alternative is a 2% corporate bond. This leads to a weird situation where companies go years not just without profits but sometimes without revenue, staying in business only because their VC investors believe a giant breakthrough is coming. Cash running low? Just do another round. The money will be there.
Now that model is breaking down..
...Rising interest rates turned off the spigot for money-losing start-ups, which, combined with energy inflation and rising wages for low-income workers, has forced Uber, Lyft, and all the rest to make their services more expensive.”
No comments:
Post a Comment