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Unicorn Startup Funding Rounds `Have No Reality,' Diller Says
- Investors paying `opportunity cost' to get in, he says
- Money pouring into space because of development in mobile
Does Anyone Actually Believe Tech Valuations?
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The valuations of startups known as unicorns, valued at $1 billion or more, “have no reality” because the companies aren’t making money, IAC/InterActiveCorp Chairman Barry Diller said.
Diller, speaking at the Bloomberg Markets Most Influential Summit, said the numbers are inflated because new investors are pouring money into the space, with the emergence of mobile technology driving fast-paced generation of ideas and inventions. Valuations will fall to a more rational level relatively soon as investment falls away, he said, without specifying a timeline.