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TheToolman

It's Coming.... Silicon Valley’s “Death by Overfunding”: Next Unicorn Collapses

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 TheToolman    750

San Francisco-based Jawbone was a unicorn whose valuation peaked at $3.2 billion in 2014. Past tense because the maker of fitness trackers and other gadgets began quietly liquidating last month. And it’s being sued by vendors that claim they’re owed money, according to Reuters. Yet, Jawbone had raised nearly $900 million in equity and debt capital. And it blew this money.

Jawbone’s liquidation was first reported by The Information on July 6 and confirmed on Monday by Reuters. It’s the second largest failure of a venture-backed startup in terms of money raised, behind the bankruptcy in 2011 of solar-panel maker Solyndra.

Top venture capital firms — including Sequoia, Andreessen Horowitz, Khosla Ventures, and Kleiner Perkins — had invested in Jawbone. In September 2014, it raised $147 million at a valuation of $3.2 billion. In February 2015, it raised $400 million in debt, of which $300 million from BlackRock. By November 2015, with prospects curdling, it laid off 15% of its workforce.

In January 2016, when VC firms refused to throw more money at it, Jawbone’s president Sameer Samat, who’d arrived from Google seven months earlier, went back to Google, and in the same breath, the Kuwait Investment Authority led a $165-million Hail Mary investment in the company.

It was a huge “down-round” that slashed Jawbone’s valuation by nearly 55% to about $1.5 billion. Getting something at half-off must have been too tempting. Similar down rounds have since bedeviled the startup scene.

Source: http://wolfstreet.com/2017/07/11/jawbone-liquidates-death-by-overfunding/

 

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You trapped me with unicorns in the title..You Knew!

Why as i read along was i thinking of a Mike Tyson fight against Lennnox Lewis?

Ya, that jawbone part. Nope it is not the funny bone...Ok I lie.. From outside involvement  looking in, it IS hilarious!

Think I could sell them a bridge to escape?

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