“I think you will see dead unicorns this year” - investor Bill Gerley

Venture capital funds take on big risks by investing in young companies without a track record. Many of these companies have a high level of expenses, they spend huge amounts of money in the hope of increasing their value. But not all of them will be successful, and even the largest startups can sink into oblivion. The period when venture capitalists are ready to part with money so eagerly can end soon - Bill Gerley spoke about this in his speech at the SXSW festival in Austin . Bill Gerley, an investor known for his investments in Uber and Snapchat, is one of the most expensive startups of our time.

. He is a member of the board of directors of Uber. He is also known for his pessimistic outlook on the modern technology industry.

At SXSW, Bill Gerley said that the “complete absence of fear” in Silicon Valley is forcing venture capital companies to take on huge risks for young technology startups. Excessive investor optimism could lead to the death of the so-called unicorn companies - startups valued at more than $ 1 billion based on the initial public offering. Currently, more than 50 startups worth more than $ 1 billion work in Silicon Valley. Among them are those operating in the same market as Stripe and Square (payment services), and Uber, Kuaidi Dache and Lyft(taxi ordering services). Dominance on one field of one player can lead to the death of competitors.

“I think you will see dead unicorns this year,” Gerley said during a speech.