Advertisement
Back To Daily Digest
Tags: BUSINESS

Could An Unsuccessful WeWork IPO End The Unicorn Era?

After a whirlwind path towards its initial public offering, The We Company’s roadshow is set to begin this week.

After slashing its valuation from $47 billion to as low as $12 billion, investors will likely be weary of the company, particularly due to CEO Adam Neuann’s dealings. For example, Neumann had been buying properties, then leasing them to his own company.

The company’s stumble to the public markets has led many analysts to believe that this could mark the end of the unicorn era in Silicon Valley.

SoftBank, WeWork’s largest shareholder and backer, may have to backpedal on its $10 billion commitment into the coworking firm which may cause it to reconsider its method of rapidly funneling money into nonprofitable tech companies.

The Latest News
Delivered To Your Inbox

This may lead other venture capitalists to stop banking on unprofitable startups, and unicorns will once again become a rare sight to see. 

The tech cycle started over a decade ago, with the iPhone, Facebook and others fueling excitement and cash from venture capitalists. While business cycles typically last seven to 10 years in Silicon Valley, due to massive supply of venture capital from new sources, it continues to drag on.

Despite recent stocks from firms such as Dropbox, Uber and Lyft falling under their IPO prices, investors are still holding on to hope.

So what will truly end the unicorn era? Possibly a recession, withdrawing of overseas capital, or the collapse of a once darling unicorn.

ABOUT Aayat Ali
Aayat Ali

Aayat is an editor for the Daily Digest based out of Kentucky. She has worked with local coworking spaces since August of 2017 and enjoys taking her firsthand knowledge to write about the fascinating, constantly evolving world of flexible workspaces. Feel free to reach out to her at [email protected] View all posts by Aayat Ali

Latest on Daily Digest

Should You Take A Workcation?

China Coworking Company To Receive UN Award

London Is The Top Destination For Gen Z Workers

Should WeWork Be Left For Dead?

The Executive Centre Continues Its Expansion In China

WeWork Hits The Brakes On China Expansion

How UK Landlords Can Benefit From Flex Space

Ad
Advertisement

FOLLOW US

  • Facebook
  • Twitter
  • LinkedIn
  • RSS
  • instagram
  • pinterest
Ad
Advertisement
Advertisement

POPULAR ARTICLES

Advertisement
Advertisement

Stay On Top Of Your Game!

Subscribe To The Largest Publication On The Future Of Work And Receive Our TOP 10 News Stories Every Friday, Among Other Cool Stuff. 100% FREE

leaving so s0on?

Get A Free Subscription To Our Weekly Premium Publication

If It’s Affecting The Future Of Work, You’ll Know About It.