Mind Matters Natural and Artificial Intelligence News and Analysis

TagUnicorns (tech startups)

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Is Rationality Finally Emerging for Unicorn Share Prices?

Share prices are falling as losses continue to mount

2021 was a great year globally for venture capital and startups. Initial public offerings (IPOs) raised a record $594 billion in 2021 globally while VC funding is on track to hit a record $454 billion invested through the first three quarters of 2021.This is up from $332 billion for the first three quarters of 2020, which was the previous record for three quarters. U.S. startups also did well with big increases in both VC funding and IPOs in 2021. Almost $100 billion of funding was given to startups in the first three quarters while for the full year, there were 416 IPOs, of which 128 were from the tech section. The total amount raised was $156 billion, of which $69 billion was for the tech sector.…

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Tech Stocks: Are the Unicorns Losing Their Horns? Their Magic?

Jeffrey Lee Funk and Gary N. Smith reveal at MarketWatch that widely publicized, iconic unicorns have never made money or made only a little

Technology consultant Jeffrey Lee Funk and Pomona business prof Gary N. Smith are not exactly bullish on the new high tech-dependent startups (unicorns) that everybody talks about. Lots of media interest and commentating, sure, but where’s the money? In a recent op-ed at MarketWatch, Funk and Smith warn, “Unicorn losses are unprecedented in the history of U.S. startups and threaten stock markets and the economy.” Not what you heard? Think about this then: The authors, regular contributors at Mind Matters News, point out that many investors and analysts worry about China’s Evergrande Group’s current woes ($300 billion in liabilities). But Evergrand was once profitable. And the Ubers and Airbnbs? They’ve never been profitable and the liabilities are growing: Unicorn losses…