Economics
More Startups Are Getting Lower Valuations Than Joining the Billion-Dollar Club
It’s getting harder to reach this exclusive mark.
Peter Thiel: There Is No Tech Bubble Now
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Well, that’s not the direction Silicon Valley wants to see things going.
According to a new report from KPMG International and CB Insights, 2016 has seen a larger number of startups taking new lower valuations than those earning the billion-dollar badge. “The first quarter of 2016 has borne witness to high-profile unicorn company issues, layoffs, down rounds and mutual fund valuation markdowns,” according to the report. Only five venture capital–backed companies entered the $1 billion club in the same period, less than half the number from any quarter since the first quarter of 2015.