Home / FINANCE / Former Uber house member and VC Bill Gurley says it’s time for Silicon Valley’s unicorns to ‘grow up’ and get profitable

Former Uber house member and VC Bill Gurley says it’s time for Silicon Valley’s unicorns to ‘grow up’ and get profitable


Bill Gurley, benchmark capital, sv100 2015
Bill
Gurley of Benchmark Capital.

Brian
Ach/Getty


  • Tech try entrepreneur Bill Gurley thinks Silicon
    Valley ‘unicorns’ are flourishing adult and realizing they need to be
    profitable.
  • But he also pronounced that new tech IPOs like Snap Inc.’s
    will lead private unicorns to presumably check going open out
    of fear.

Silicon Valley’s many essential startups are realizing that they
need to “grow up,” according to longtime tech VC Bill Gurley.

“As many of a unicorns mature in age, many are entrance to the
approval that they need to grow up, get profitable, go public,
or do something along those lines,” Gurley pronounced during an
interview on CNBC on Friday, referring to a ‘unicorn’
startups that are valued by private investors during $1 billion or
more.

“This stupid idea of we’re going to stay private perpetually is not
going to play out in a certain way,” he warned.

Gurley’s viewpoint has some bias. As a try entrepreneur who
invests in startups, he needs those startups to IPO (or get
acquired) so that he can reap his returns. But as a tech
IPO marketplace regains momentum
after a delayed 2016, and in a arise of a few
high-profile tech flameouts this
year, Gurley’s words come during an important
time for startups considering their subsequent steps.

Gurley’s try collateral firm, Benchmark, is best famous for its
early investments in companies like Uber, Snap, Twitter, and
eBay. Gurley was a member of Uber’s house until Benchmark
helped force a dismissal of ex-CEO Travis Kalanick progressing this
year.

“2017 has been a really formidable year,” Gurley pronounced on CNBC when
asked about Uber. “And it’s been one where we’ve been working
utterly diligently behind a scenes to try to pierce things forward
for a company.” Benchmark
sued Kalanick in Aug amidst a energy squeeze for Uber’s board
seats that eventually led to a employing of now-CEO Dara
Khosrowshahi.

Afraid to play in a open markets

Since Khosrowshahi came on board, Uber has publicly
committed to aim for a 2019 IPO.

The predestine of tech companies entering a open markets this
year has been mixed. Video streaming association Roku has seen its

batch some-more than double given going open in September. And
craving tech company’s
SendGrid jumped 14% on a IPO this week.

But a many high form IPO of a year has not fared so
well. Snap Inc, a primogenitor association of Snapchat, has
gotten dejected and is trade good next a $17 IPO
price.

When asked about a gloomy entrance of Snap, one of Benchmark’s
investments, on Wall Street progressing this year, Gurley pronounced the
event could means other unicorns to be fearful of going
open — a move he compared to graduating from college to
veteran sports.

“I consider you’re going to see a vast series of unicorns who were
fearful to play on Sunday, fearful to play in a open markets,
that didn’t get their act together in time,” he said. “Didn’t get
profitable. Didn’t know section economics and harm a value
of a equity as a result.”

You can watch Gurley’s
full talk on CNBC’s website.

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