One topic of conversation in technology has been “are we in another bubble?” That question was brought up at the recent AlwaysOn Silicon Valley Innovation Summit. WISE PR provided some PR support to the event and invited media to attend, including Mark Albertson, Technology Columnist at the San Francisco Examiner. Here’s Mark’s story addressing whether there’s another tech bubble and unicorns. An excerpt:
That was the consensus drawn from two separate sessions at the Summit, which was organized by the business media brand AlwaysOn. Of particular interest were the “unicorns,” technology companies who are valued at over $1 billion and so named because they are the start-ups most treasured by the industry. There are currently 116 companies on the highly-prized unicorn list including firms such as Pinterest, Snapchat and Dropbox. And if some of the presenters yesterday are right, that list is going to be smaller by this time next year.
“Unicorns in the consumer Internet space are getting the least rational valuations,” said David Cowan of Bessemer Venture Partners. “There’s going to be a lot of money lost if deals aren’t structured properly.”
Steve Harrick, a general partner with IVP, echoed Cowan’s remarks and pointed to two of the biggest consumer unicorns – Uber and Airbnb – as examples of overvaluation. According to Harrick, many of these large technology startups have already reached their peak value, and predicted that 20-25% of them will lose value over time. “This is as good as it gets,” said Harrick.
To read the full story, click here.