Two of the world’s leading tech investors have warned the
new wave of tech companies and their backers are taking on risk and burning
through cash at rates unseen since 1999 when the “dotcom bubble” burst.
Bill Gurley, partner at Silicon Valley-based investor
Benchmark, sounded the horn of doom on Monday warning that “Silicon Valley as a
whole or that the venture-capital community or startup community is taking on
an excessive amount of risk right now.”
Bill Gurley, partner at Silicon Valley-based investor
Benchmark, sounded the horn of doom on Monday warning that “Silicon Valley as a
whole or that the venture-capital community or startup community is taking on
an excessive amount of risk right now.”
Gurley said that “more humans in Silicon Valley are working
for money-losing companies than have been in 15 years”, and they’re burning
through huge piles of cash.
“In 01 or 09, you just wouldn’t go take a job at a company
that’s burning $4m a month. Today everyone does it without thinking,” he said.
