R.I.P. Goofy Times

A strange new sensation has settled across the tech industry, one so foreign, so alien, it’s almost hard to recognize. A sense that some great expectations are being radically revised downwards; that someone has turned down a previously unquenchable money spigot; that unit economics can matter even when you’re in growth mode. Could it be…

R.I.P. Goofy Times

A strange new sensation has settled across the tech industry, one so foreign, so alien, it’s almost hard to recognize. A sense that some great expectations are being radically revised downwards; that someone has turned down a previously unquenchable money spigot; that unit economics can matter even when you’re in growth mode. Could it be … thrift?
Well, OK, let’s not go that crazy. But we are witnessing a remarkable confluence of (relatively) parsimonious events. Last year’s high-profile tech IPOs are far from high-fliers: Uber, Lyft, Slack, Pinterest, and Peloton are all down from their IPO prices as I write this, some of them significantly so, even while the overall market has climbed to all-time highs. Those who expected immediate massive wealth six months later, even for relative recent employees, have been surprised.
Meanwhile, not-yet-public companies are tightening their belts, or taking their chances. We have seen recent waves of layoffs at a spectrum of tech unicorns. Others, i.e. Casper and One Medical, just filed for IPOs to general criticism if not outright derision of the numbers in their S-1s.
The less said about the WeWork debacle, the better, but we can’t not talk about it, as the repercussions have been significant. Both directly — SoftBank is ramping back significantly, including walking away from term sheets, prompting more layoffs — and indirectl
Read More From Publisher