thenextweb.com – Silicon Valley is preemptively reacting to a ‘bubble’ that hasn’t popped – a bubble that only exists in the business-to-consumer (B2C) tech world. While most business-to-business (B2B) startups launch with a plan to make money (a.k.a. a monetization model), social content ‘unicorns’ are in race between record-high burn rates and eye-popping user growth. They have one viable option: a fairytale acquisition.
This is unsustainable, and it is inflating the bubble. My hope is that VCs will recognize this and force social content startups to create monetization models before they raise capital. Either way, the B2B tech ecosystem will thrive, and investors will find their unicorns at the intersection of multibillion dollar industries.
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