Square Filing Shows Investors Are Sick Of Seeing Money Burn
Tech unicorns, new firms with billion dollar valuations, have enjoyed a fairly easy existence lately, but that could be about to change.By Leah Becerra | November 8, 2015
The last couple years have spoiled the tech industry with high valuations, easy money and overly forgiving investors — and we've seen a ton of successful initial public offerings for unicorns.
Unicorns are newer startup style firms with valuations above $1 billion. And they've been allowed much higher burn rates — or money that's essentially lost — than ever before. For investors, that means risk. (Video via Bloomberg)
"Somehow we've gotten very comfortable with — you know — $20 million a month burn rates... when did that become OK?" said venture capitalist Bill Gurley to The Wall Street Journal.