The Second Tech Bubble Has Burst: Here Come The Mass Layoffs – 02.29.16

  • Over the past year we have diligently followed the bursting of the second tech bubble which in the space of less than one year went from the “running of the bulls” to the “mauling of the unicorns“, mostly in the private markets but also – for those rare few who have made it beyond the IPO stage – in the public arena.
  • In the last few months, this painful reality finally hit ground zero – Silicon Valley itself, as best described in “The Mood In Silicon Valley Is Like The “Moment After The Titanic Hit An Iceberg.” As the Wall Street Journalsummarized it:
 Some companies are raising funding by selling shares at lower prices than they had in earlier rounds. Such “down rounds” can hurt a startup’s chances at recruiting and discourage employees who are often paid with stock options…. These changes are eroding the idea that drives Silicon Valley’s economy: Work hard, secure venture capital and get rich. With valuations falling, the other side of the equation is reappearing: Failure is often just around the corner.