Gil: A third of 2021 non-AI unicorns will go bust or fire-sale
Elad Gil · No Priors Ep. 27 | With Sarah Guo & Elad Gil · Aug 10, 2023 · at 19:01
Investor Elad Gil discusses the macroeconomic outlook and valuation hangover for mid-to-late-stage private tech companies heading into 2024 and 2025.
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“I think if I were to sort of divvy up that pie of those companies, sort of mid to late stage private tech companies, not in AI, and what's going to happen to them next year and in 20, 25, I think a third of them are just going to go under, or a third of, I should say, unicorns. Will eventually just go under, be fire sales, whatever. They won't be able to ever raise money again. A third will be at the highest valuation they'll ever be at ever in the lifetime of the company. They'll reach their terminal value. And there's examples from 20 14 of companies that went through that same wave. They, you know, raised in 2014, they went public a few years later, and then they never surpassed there. Their market cap again. And then I think lastly, there'll be a third of companies that grow past it.”
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