{"id":44044,"date":"2023-10-20T15:33:02","date_gmt":"2023-10-20T15:33:02","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/overpriced-startups-to-have-their-day-of-reckoning-startupsmart\/"},"modified":"2023-10-20T15:33:02","modified_gmt":"2023-10-20T15:33:02","slug":"overpriced-startups-to-have-their-day-of-reckoning-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/overpriced-startups-to-have-their-day-of-reckoning-startupsmart\/","title":{"rendered":"Overpriced startups to have their \u201cday of reckoning\u201d – StartupSmart"},"content":{"rendered":"
\"\"<\/div>\n

Overpriced startups will soon have to face their \u201cday of reckoning\u201d as the growth of unicorns is fuelled by \u201coutsiders\u201d not VCs, Upfront Ventures general partner Mark Suster says.<\/p>\n

 <\/p>\n

In the \u2018final venture outlook 2016\u2019 report, Suster outlines his view on the much talked about \u2018tech bubble\u2019 and how he thinks the landscape will change going into next year.<\/p>\n

 <\/p>\n

He says 50 startups worth more than $US1 billion have been created in the past 18 months, and that many of these are \u201csubprime unicorns\u201d.<\/p>\n

 <\/p>\n

But this isn\u2019t the fault of overconfident venture capitalists, Suster says.<\/p>\n

 <\/p>\n

\u201cIt\u2019s like blaming the media for incessantly covering Donald Trump and then watching the ratings when Donald Trump is at a debate and being surprised that the media gives him so much coverage,\u201d Suster says.<\/p>\n

 <\/p>\n

\u201cThere is nobody to blame for this abandonment of common sense \u2013 it is simply the market being the market and we\u2019re doomed to repeat history.\u201d<\/p>\n

 <\/p>\n

Many tech companies are being valued too highly though, he says, and it\u2019s all set to come to a head next year.<\/p>\n

 <\/p>\n

\u201cCompanies eventually must have their day of reckoning,\u201d Suster says.<\/p>\n

 <\/p>\n

\u201cThey must either IPO or they must be brought by larger companies who almost certainly themselves are public. So eventually rationality has to occur.\u201d<\/p>\n

 <\/p>\n

Suster predicts there these \u201cover-heated\u201d markets will cool off in 2016, and that this could see many outside investors move away from the startup world.<\/p>\n

 <\/p>\n

\u201cWe will continue to see over-funding of late-stage venture financings until the bloom comes off the rose,\u201d he says.<\/p>\n

 <\/p>\n

\u201cThen I predict rational non-VCs will return to their day jobs chasing returns in other corners of the financial world and we people who only know how to do venture will continue doing just that.\u201d<\/p>\n

 <\/p>\n

Do you know more on this story or have a tip of your own? Raising capital or launching a startup?<\/i> . Follow StartupSmart on<\/i> Facebook<\/i>,<\/i> Twitter<\/i>, and<\/i> LinkedIn<\/i>.<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"

Overpriced startups will soon have to face their \u201cday of reckoning\u201d as the growth of unicorns is fuelled by \u201coutsiders\u201d<\/p>\n","protected":false},"author":1,"featured_media":59464,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/44044"}],"collection":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/comments?post=44044"}],"version-history":[{"count":0,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/44044\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media\/59464"}],"wp:attachment":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media?parent=44044"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/categories?post=44044"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/tags?post=44044"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}