With Uber reportedly raising $1.5B to $2B, its latest valuation will be at $50B, making Uber the richest startup in history. What kind of repercussions will this create for the startup ecosystem? I’ve listed a few points here, will be happy to discuss!
Good
1. Entrepreneurs are spurred on by such success stories – 5 year old company rises up the ranks in such a short period of time. Other examples include Xiaomi.
2. New companies with disruptive and innovative models have sprung up (think Uber, Airbnb) in their respective sectors, and it gives validation for other founders to dare to think out of the box.
Bad
1. Big VCs might seem to be pursuing startups in the hottest, popular verticals, less attention given to other sectors not in limelight.
2. Rocket high valuations – can they keep rising?
3. Startups might start chasing the cash – instead of building good products that people need, they now build more products that are sexy and what people want.
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