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Thriving Startup Sector



Unicorns are becoming a more common sighting (1) with a new term being coined for those who top the $10 billion valuation (2). Chinese (3) and Israeli (4) unicorns are becoming a popular investment item for global investors (5) while Israel is looking to tap into the Asian startup scene (6).

Hong Kong’s IPO market is set to deliver record returns (7) with Alibaba set to file a second listing (8). The Asian startup ecosystem continues to grow (9) with plans to integrate key cities to larger economic zones (10) while Indian startups look for ways to disrupt payment systems (11).

Given the current economic environment, it seems Startups are more focused on a strategy of “blitzscaling” (12) than they are on generating profits or sustainable business models (13).

Overhyped valuations can lead to IPOs that don’t accurately reflect the underlying value (14), with investors seemingly unsure how to price the offset between a startup’s potential growth to their current losses (15).

While the current state of the tech market has some drawing comparisons to the dot.com bubble (16), others look at the differentiating factors such as the later age at which companies are going public (17).

 

References

  1. The Crunchbase Unicorn Leaderboard is back, now with a record herd of 452 unicorns – TechCrunch

  2. Go-Jek Joins ‘Decacorn’ Ranks With $10 Billion Valuation

  3. Wall Street Is Lending Billions to China's Hottest Tech Unicorns

  4. These Israeli Entrepreneurs Managed to Breed Their own Unicorns

  5. Unicorn Hunters: These Investors Have Backed The Most Billion-Dollar Companies

  6. Israel VC Player Plans Asia Fund and Partnerships With Local Banks

  7. When It Comes to Returns, Hong Kong’s IPO Market Is Living It Up

  8. Alibaba files for HK listing that may raise $20 billion as soon as...

  9. Manila among top cities friendly to start-ups

  10. Greater Bay Area is perfect stepping stone for Hong Kong start-ups to go global: ex minister

  11. India’s Mswipe raises $30M to grow its smart point-of-sale terminal business

  12. The wave of unicorn IPOs reveals Silicon Valley’s groupthink – WorldoutofWhack

  13. WeWork Made $1.8 Billion In Revenue Last Year; It Lost $1.9 Billion

  14. Lyft just had a lousy day but that's its own problem, not the stock market's

  15. Uber Prices IPO At $45, Becomes Most Money Losing Company To Ever Go Public

  16. Blain: "Are We Finally Approaching The Top Of The Second Tech Bubble"

  17. Reports of an overheated IPO market are greatly exaggerated


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