Bits: Potential Unicorns, Meet a Rough Market

If you have trouble reading this email, please click here
Monday, August 24, 2015
For the latest updates, go to nytimes.com/bits »


Daily Report

Potential Unicorns, Meet a Rough Market | Stock markets around the world plunged last week, capped off on Friday when some benchmark indexes had their biggest losses in years, partly from turmoil in China. Tech stocks did not escape the fall, with some companies being hit particularly hard, including Netflix, which tumbled more than 16 percent over the course of the week. Twitter, which has been on a slide for a few weeks, ended the week below its I.P.O. price. The selloff in global markets continued on Monday.

Only someone with a DeLorean time machine can say with authority whether the fall was a temporary correction for an overheated market or a sign of further and more painful declines to come. Already, though, there are grumblings that the downturn could alter the booming tech industry.
Bill Gurley, a venture capitalist at Benchmark, fired off a series of tweets last week about the market stumbles, mincing no words. “One might reasonably assume," he wrote, “that this would have an adverse impact on late stage private market liquidity and valuation. I certainly do."
He added: “We may be nearing the end of a cycle where growth is valued more than profitability. It could be at an inflection point."
Which companies might be affected the most? It might not hurt to start by looking at the 50 companies listed by CB Insights as the most likely potential “unicorns" – those companies with valuations over $1 billion. CB Insights, which tracks venture capital and start-ups, created the list using software that analyzes dozens of factors about a start-up.
As Katie Benner writes, many of the trends spotted by CB Insights won’t be particularly new to followers of tech industry news. International companies – particularly from India and China – are on the list. So are delivery companies like the British food delivery start-up Deliveroo and Postmates, which delivers goods from any store or restaurant.
Given China’s economic turmoil and the high cost of operating delivery services, the companies in those areas will definitely be worth keeping an eye on in the coming weeks and months.

ADVERTISEMENT


More From The Times
Kirt McMaster, in a Transformers mask, and Steve Kondik, right, of Cyanogen, which is on a list of companies seen as candidates for passing the $1 billion valuation mark.

The ‘Unicorn’ Club, Now Admitting New Members | Over 100 start-ups have crossed the billion-dollar valuation threshold, and an analysis from CB Insights showed 50 more are poised to reach this benchmark.

Among the companies expected to be worth $1 billion or more are ones focused on drones, hotel booking, staffing for human resources, food delivery and other on-demand services.

50 Companies That May Be the Next Start-Up Unicorns | Which start-ups may be next to ascend to the $1 billion valuation club? Here’s a list of 50, as compiled through an analysis from the research firm CB Insights.

Klaus Hommels in the Berlin offices of Lakestar, an investment company that has increased its wager on European start-ups.

Big Investors Are Finding Ripe Start-Up Targets in Europe | Venture capital, private equity and other big investors are increasingly finding technology start-up investment targets in Europe.

Diane M. Bryant, a senior vice president of Intel, in San Francisco. Intel has earmarked $100 million for cloud computing.

Intel to Invest Heavily in Software That Enhances Cloud-Computing Capabilities | An expected $100 million in funding to be directed to cloud-computing software and a related start-up reflects the company’s view of its own future.

Residents of Via Fondazza in Bologna, Italy, meeting at a corner bar.

Italian Neighbors Build Their Own Social Network, Online and Off | An idea that began with a Facebook page started by two people looking to make friends has expanded beyond the narrow confines of Via Fondazza in Bologna.

ADVERTISEMENT


Insight & Analysis
Donal O'Conghaile

Donal O’Conghaile: Shepherd of Free Samples | As an online community manager at Social Media Link, a marketing agency in New York, Mr. O’Conghaile oversees a group of Internet users who review clients’ products.

A computer displayed the path the employees walked.

In a Data-Driven N.F.L., the Pings May Soon Outstrip the X’s and O’s | With new technology, fans watching on television and following on the Internet will be able to see how fast and far players are running, as well as other statistics and data-driven graphics.

.  For Bits mobile, go to m.nytimes.com/bits »
.  BlackBerry users can download the Bits BlackBerry Shortcut »
.  Receive this daily email: Subscribe »

About This Email

You received this message because you signed up for NYTimes.com’s Bits Email newsletter. As a member of the Truste privacy program, we are committed to protecting your privacy.

Copyright 2015 | The New York Times Company |NYTimes.com 620 Eighth Avenue New York, NY 10018

No comments have been made. Use this form to start the conversation :)

Leave a Reply