March 10 - Breakingviews columnists discuss the new Silicon Valley term for startups that reach a $1 bln valuation and whether it's indicative of 1990s-style hype in the tech sector.
So you -- and exist right well role they do it Silicon Valley it's the latest. Turn of phrase being bandied around for stuff folks that get to be what the billion dollars. -- little bit of a whiff of Silicon Valley -- malicious that. -- -- it's almost the ultimate phrases that -- telling contact. Silicon Valley which could you know have all sorts of fantastical competitions in there and on the morning it was. Yet they always come up with the best term knowledge tools click eyeballs -- current rates. But you -- court really sort of captures the whole thing because costs mythological. You know so this woman that at a start up fund wrote an article a few months ago. Using the word to describe -- software companies they've achieved the billion dollar valuation of answer appeared time. And it's very small percentage of them -- she uses -- unicorn. To describe them. But it is just caught fire when it everybody's every. Founder of it nor is now using the word to every hospital as -- to find the unit called -- right -- yet so it all kinds of amazing terminology you know. You know the Silicon Valley valley business journals using it headlines. It describes in front of them that Tzipi an eco superhero work of art events on its. And it at bats and you've got a hundred billion dollar valuation like FaceBook. And some of the some doubt you know start with some of the -- think what my company. Could you supreme. That will ever ever going to be a Supreme Court wouldn't with a lot of this Telus. Silicon Valley valuations right now it is an instinct tells him there at the moment in various things they really world debuts and they get funding rounds in this thing and that's what's interesting is that all these terms that they have a shelf life here because we'll explain almost. And -- all the things you you think about the late ninety's like eyeballs you know like I think. First marketed -- all these terms. Can begin in the culpability you have indicated all what are they became very discredit X people suddenly realized -- -- that's actually not a great thing you have eyeballs they actually need to profits. And I suspect this can be the same sort of thing here it's gonna say you know -- well that's that's kind of we talked to meet for a couple years ago a couple of opportunities out instantly yes exactly. And yet they're still mythical creature. In the evidence of it really again sort of going back to write a fantasy land and allowances and -- coupons dot com. Which doesn't fit into you know the woman wrote the articles you know. Rubric of what -- relatives but. He did achieve a billion dollar valuation and its shares doubled on Friday on an IPO is the company has been around for sixteen years and has never made a profit. So I mean there's there's one example of you also had a firearm which is you know some are very high tech company because cyber attacks security stuff. You know six months after their IPO. The shares have gone wild and they were able to a secondary share offering on Friday. Another 500 million dollars raised to help because of that position that is so -- it's just an example. But -- -- the word which is sort of funny in a way right -- You know the reason for the pseudo reality that's going on. I suppose that that's also a bit like late eighties movies where you just have to believe and he believed in dreams can magic I'm sure it's the same sort of thing if you believe in these valuations and the other worth a billion terror thoroughfare a hundred billion cerberus agreed -- exist but the reality is they probably -- All right guys. Thanks so look will keep relentless and musicals but women -- David we will have some -- breaking news.