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LinkedIn’s Hoffman: Half of Tech ‘Unicorns’ May Not Succeed

  • Hoffman says there's a quasi-bubble in the private markets
  • Some startups won't reach the same value in IPOs, he says
Bloomberg business news

Hoffman: Less Than Half of Unicorns Will Be Successful

Reid Hoffman, the venture capitalist who co-founded LinkedIn Corp., said many private companies with multibillion-dollar valuations are unlikely to see those values recognized in the public markets.

There are currently more than 140 closely held startups with valuations topping $1 billion, a designation that used to be so rare any company reaching it was known as a “unicorn,” according to a database by CB Insights. Hoffman expects that only a third to a half of these companies will actually “survive and thrive.”