A herd of tech unicorns is about to fall off the rainbow.
That’s the tough prediction that Bill Gurley has been making all year — and the San Francisco venture capitalist just got bolder about it, according to The Post’s James Covert.
Gurley — whose firm Benchmark Capital is a key investor in top-shelf $1 billion-plus unicorns including Uber and Snapchat — cited, in part, in a Twitter tirade on Thursday the brutal selloff of tech stocks over the past six weeks. The stocks have fallen 25 percent to 50 percent over that span.
Indeed, the tweet storm read like a wake-up call for wunderkinder like Snapchat’s Evan Spiegel and Uber’s Travis Kalanick, both of whom had to deal in the past month with leaked documents showing that their firms posted losses that measured in the hundreds of millions of dollars.
Unicorns — private tech companies valued at more than $1 billion — have raised cash by dazzling investors with their fantastic plans for world domination. But a newfound interest in profits could bring them down to earth, according to Gurley.
“Can you get to profitability on your last round? Have you even considered such a reality?” Gurley wrote, sounding like an exasperated parent.
