Unicorn investors (start ups that roll out at over a billion dollar evaluation when they have made no money). \u00a0Good for entrepreneurs? \u00a0Bad for investors?<\/p>\n
Barry Diller, speaking at the Bloomberg Markets Most Influential Summit, said the numbers are inflated because new investors are pouring money into the space, with the emergence of mobile technology driving fast-paced generation of ideas and inventions. Valuations will fall to a more rational level relatively soon as investment falls away, he said, without specifying a timeline.<\/p>\n
\u201cWhat we have had is an enormous amount of money coming in, continuing money coming in, and no shoes dropping yet of any real size,\u201d Diller said. \u201cWhen it begins to happen, reality descends — then, in fact, valuations will become more rational.\u201d<\/p>\n
There are 140 startups valued at $1 billion or more, eight of them joining the so-called \u201cunicorn club\u201d in September, according to research firm CB Insights. Most of these startups aren\u2019t profitable, so the valuations don\u2019t matter, Diller said.<\/p>\n
\u201cThe price only makes sense if you\u2019re saying, \u2018I\u2019m over here in this non-digital age and I want to get into this and I\u2019ll pay this huge opportunity cost, and maybe I\u2019ll make something of this,\u201d\u2019 Diller said, citing Walt Disney Co.\u2019s purchase of Maker Studios for $500 million as an example.<\/p>\n
Unicorn investors (start ups that roll out at over a billion dollar evaluation when they have made no money). \u00a0Good for entrepreneurs? \u00a0Bad for investors? Barry Diller, speaking at the Bloomberg Markets Most Influential Summit, said the numbers are inflated … Continue reading ![\"The](\"http:\/\/www.w-t-w.org\/en\/wp-content\/uploads\/2015\/10\/The-Value-of-Unicorn-Starups-300x285.jpg\")
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