“I think this year you will see dead unicorns” - investor Bill Gurley

Venture funds take great risks by investing in young companies without a track record. Many of these companies have a high level of spending, they spend huge amounts of money in the hope of increasing their value. But not all of them will be successful, and even the largest startups can sink into oblivion. The period when venture capitalists are ready to part with money so willingly may end soon - Bill Gurley spoke about this in his speech at the SXSW festival in Austin.

Bill Gurley - an investor, known for his investments in Uber and Snapchat - one of the most expensive startups of our time . He is a member of the board of directors of Uber. He is also known for his pessimistic view of the modern technology industry.

At SXSW, Bill Gurley said that “complete lack of fear” in Silicon Valley forces venture capital firms to take enormous risks against young technology startups. Excessive investor optimism may lead to the death of the so-called unicorns companies - startups, valued at more than $ 1 billion by the results of the initial offering. Currently there are more than 50 startups worth $ 1 billion in Silicon Valley. Among them are those operating in the same market as Stripe and Square (payment services), and Uber, Kuaidi Dache and Lyft (taxi booking services). Dominance on the same field of one player can lead to the death of competitors.

“I think you’ll see dead unicorns this year,” Gurley said during a speech.