recode.net – For quite a long time now, Silicon Valley has defied gravity — at times it has felt as though a creative idea and a whisper in the right ear were enough to create a windfall of investment dollars. Business models, customers, monetization — all felt secondary to the notion of a good story and the promise of success in some hazy, far-off future. As comforting as that may have been to the big thinkers and dreamers of the world, it was not reality. It was, in fact, a fairy tale.
Recently, there’s been a certain frothiness surrounding the stock market. Whether or not we’re experiencing a correction, a mood swing, or simply coming back to Earth after six years of growth, is all up for debate. Interestingly enough, though, the entire scenario has called into question the valuation of many companies in the tech space. A “unicorn bubble,” so to speak. Roughly translated: Are there really a myriad of relatively new companies that can possibly be worth a billion dollars or more? What is the criteria, and if they received a new valuation today, would they still hit that esteemed metric?
Read more at recode.net