Showing posts from November, 2015

If 87 Unicorns fell in the valley, would they make a sound?

This post was also published in VentureBeat.A lot of noise has been made about the inflated valuations of Aileen Lee’s unicorns and the amount of money they have raised. There are rumors that uber-unicorn Uber is now raising an additional $1 billion, in order to continue to fuel growth financed by losing a rumored two dollars for every dollar in revenue. On the one hand, that seems irrational; but on the other hand, loss-fueled growth is how companies like Amazon became the behemoths they are today.In the broader context of Silicon Valley technology companies, the unicorns in aggregate form barely a ripple in the fabric of space-time. According to CBInsights, there are 87 Unicorns in the United States, with a combined valuation of $312 billion. Cross-referenced with Crunchbase, those 87 have raised a cumulative $48 billion, with over half of that amount invested in the top 14 unicorns.What if all of these unicorns vanished to Candy Mountain tomorrow? What would the ramifications be a…