5/3/2023 0 Comments Tech crunchEven some hardened “hodlers” have been getting cold feet. On May 12th SoftBank, a Japanese tech investor with a penchant for risky bets, most of which are private, reported that its flagship funds lost an eye-watering $33bn in the past 12 months.Īlthough they were meant to reach the Moon no matter what, cryptocurrencies are also coming a cropper. The unicorn boom’s superstar investors have been walloped. The amount of capital invested dropped by 19%, the biggest quarterly decline since 2012. Between January and March this year the number of transactions fell by 5% compared with the previous quarter. ![]() CB Insights, a research firm, reckons that tech startups raised $628bn globally in 2021 in more than 34,000 deals. According to an index that tracks the 25 largest de- SPACed vehicles, they have lost 56% of their value since the beginning of the year.Īs tech shares crash, they are pulling valuations of private firms down with them. Many of those that have done deals have lost their shine. Of the more than 1,000 such firms that have floated in America since 2018, only a third have merged with a target. The boom in SPACs, which go public and then find a startup with which to merge, has imploded. From January to April 2021 some 150 companies went public in America, most of them techie. As a group, the largest newly listed firms are worth 38% less than at the start of the year (see chart). ![]() Those of Peloton, which makes internet-connected exercise bikes, have lost over 90% of their value from their peak. The shares of Robinhood are 80% below the level at which the retail-trading app went public in July 2021. ![]() High-flying startups that went public in recent years have been hit hard, too.
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