Venture Capitalist: 90% Of $1B Startups Headed For Trouble
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Venture capitalist Jim Breyer, who made a fortune investing early in Facebook, says 90% of unicorn startups (startups valued over $1B) will be repriced or die off.
Unicorns like WeWork and Airbnb have seriously disrupted the industry for some time, with new real estate tech startups coming out of the woodwork every week.
But Breyer says there’s “blood in the water,” as valuations got out of control through greed, short-term visions and downturn protections, Business Insider reports.
On the real estate tech side, which raised over $1B last year, there's a "graveyard" of companies, Compass CEO Robert Reffkin says, caused by companies disrupting "just to disrupt."
Altogether, there are around 144 unicorns right now. If Breyer’s right, only 14 will make it out of the tech boom in one piece. [BI]