Unicorn may be a term of the past. Look, we are not discouraging or stating anything ourselves. The market and experts are predicting this. All these months, your Twitter feed and news sources were flashing the tales of startups raising millions of dollars rapidly and bestowing their employees with high salary packages and a lot of cool stuff. Money was pouring in, everyone was bloated and the party was on!
Until the music stopped...
It seems like Warren Buffet’s quotes find relevance in every corner of the argument. We found the most suitable one for backing this scenario “Only when the tide goes out you discover who's been swimming naked”
In other words, reality would come in front of everyone and story-telling skills won’t be enough any longer. The market has finally decided to open the mysteries and remove the curtain behind which these fancy glittering valuations once stood.
So, what do you do when the money is not pouring in and you aren’t expecting to turn profitable any time soon? You cut down costs. That’s what we are seeing, startups are laying off people to lessen their pain. Everyone seems to think that the golden days are gone or that “we are in a bear market”
You can realize and anticipate something is really wrong when the big names start making some noise. The reaction by behemoths like Y Combinator and Sequoia Capital was a red alert. They warned their backed companies of a possible money crunch and told them to prepare for the worst. Looks like the bulls gonna be beaten by the bears finally or someone would argue that this win was long overdue.
There may be a blessing in disguise here though. Finally, value creation would be celebrated instead of valuations. The upcoming players would get a tight lesson on market brutality or a quick reality check. We are not yet sure how it will turn out but the fundamentals of good business are not gonna change. Good businesses will bloom and the bad will be rooted out.
So sit tight and enjoy the show...