More Pain Is Coming for Overpriced Technology Startups By Shira Ovide

1I'm going to spill a dirty secret of technology

a

startup investing. Brace yourselves. Too many young tech companies have raised too much money, often at unjustifiably high valuations. Not all investors in private companies will make a profit from the bloated pool of startups. There will be (unicorn) blood.

There are understandable reasons that young technology companies are collecting more investment money than at any point in the past decade. Globally, people have few options to generate good investment returns, and they're grabbing slices of fast-growing startups that could become the next Facebook.

But those individually rational investor decisions have resulted in collective irrationality. Too many young companies have valuations far higher than reality can support.

https://www.bloomberg.com/gadfly/articles/2017-10-26/more-pain-is-coming-for-overpriced-technology-startups