From Unicorn to Unicorpse: OnDeck Crashes as Online Lending Sector Struggles

According to Morgan Stanley analysts, within the US, the volume of loans extended by marketplace lenders have doubled every year since 2010 and grew to $14 billion in 2014. The growth is estimated to continue at 47% annually through 2020. But the fast growth of the industry is coming at a cost. Stricter regulations on the industry have caused investors to be cautious and several players are seeing a transition from the Unicorn to the unicorpse* status. Earlier this year, online lender Social Finance pulled the plug on its IPO plans. Other companies that had already listed like Lending Club and OnDeck (NYSE: ONDK) have seen their valuations fall by as much as 50% since their IPO.

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From Unicorn to Unicorpse: Jive Software Reports a Mighty Fall

The global enterprise social software market may have been projected to grow 11.3% annually to $8.14 billion in 2019, but the impressive growth rate of the industry is not translating into similar benefits for enterprise social software provider Jive (Nasdaq: JIVE). The company has seen its valuation tumble over the last few years as its erstwhile Unicorn status dwindled to a unicorpse*.

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From Unicorn to Unicorpse: How Groupon Fell From Grace

When it launched in 2008 as a daily deals site, Groupon (NASDAQ: GRPN) benefitted greatly from the economic downturn. Within 18 months, it achieved the billion dollar unicorn status. It even turned down a $6 billion acquisition offer by Google in 2010. Shortly after going public in November 2011, it reached a valuation of about $15 billion and a high of $31.14. However, it never hit that level again. Compared to its former self, Groupon is almost a unicorpse* with a valuation of less than $2 billion and a stock price of $3.17. As with most unicorpses, waning interest, high marketing costs, and continuing losses are its main problems. >>>

Billion Dollar Unicorns: Hortonworks Struggles to Stay in the Club

Sometimes a good offering is not sustainable enough to maintain a Unicorn status. Palo Alto-based Hortonworks (Nasdaq: HDP) is one such example of a unicorn turning into a unicorpse* and then barely working its way back to its IPO valuation. The company is well known for its Hadoop offerings. But after being valued at over a billion dollars, it lost its stature last year. The company has managed to recover some lost ground, and is trading just shy of the billion dollar mark. Like I said earlier, the company needs to deliver with real performance, not just promise, at this point.

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From Unicorn to Unicorpse: RetailMeNot Going on Discount

I have always been skeptical about the skyrocketing valuations that VCs apply to startups as they go about their mad rush to fund businesses. In their zeal, they ignore the necessity of a sustainable business model and have funded many a unicorn that have crashed and turned into a unicorpse*. The stock market is a different playing field altogether and for companies to sustain their valuations under public scrutiny is a whole different ballgame. Funny money no longer works. Online coupon site RetailMeNot (Nasdaq: SALE) has already realized that it is not an easy task to bask in the pre-IPO glory once the scrutiny begins.

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From Unicorn to Unicorpse: Angie’s List Should Accept IAC’s Acquisition Offer

In the IPO rush of 2011, several new age Internet companies went public hoping to cash in on the valuation hype. Local business reviews site Angie’s List (NASDAQ: ANGI) was one of them. In November 2011, its stock touched a high of $18.75 and a billion dollar valuation soon after its listing at $13.00. Since then, its all-time high was $28.32 in April 2013 when its market cap was around $1.5 billion. But this year, amid tough competition from the likes of Amazon and Thumbtack and skepticism about the lack of profits and high marketing costs, its stock price dipped to an all-time low of $3.73 and market cap of about $240 million, making it a unicorpse*. It has since recovered a bit, and is currently trading around $10 with a market cap of about $550 million. >>>

From Unicorn to Unicorpse: How LivingSocial Imploded

We have seen several unicorns with artificially bloated valuations and questionable business models. LivingSocial is one such company. In late 2012, LivingSocial was valued at $6 billion and venture capitalists had poured in about $800 million. They were lured by the daily deals market which was expected to reach $4 billion by 2015. Today, LivingSocial is a unicorpse* having burnt money on marketing and expanding its user base, rather than focusing on its monetization. It was last valued at $48.4 million. There is a lot to be learnt here—about what not to do in navigating your entrepreneurial journey. >>>

IBM on an Acquisition Spree

IBM’s (NYSE: IBM) revenues have been on a decline for 14 consecutive quarters now and it has been trying hard to drive its focus toward the cloud, Internet of Things, artificial intelligence, and analytics. IBM has made 12 acquisitions this year, with the cloud and its cognitive system Watson driving them. >>>

Billion Dollar Unicorns: Tujia Offers Vacation Rentals in China

According to iResearch’s estimates, China’s online travel industry is projected to grow to $75 billion by 2017 from $46 billion in 2014. One of the new entrants to the Billion Dollar Unicorns club is China’s online vacation rental site Tujia. The company has successfully adapted the AirBnb model to suit China’s unique market conditions.

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Billion Dollar Unicorns: DraftKings Looks Worried as Fantasy Sports Come Under Scrutiny

The rapidly growing fantasy sport industry has created a few Billion Dollar Unicorns. According to Eilers Research, the daily fantasy games market is projected to generate $2.6 billion in entry fees this year and grow to $14.4 billion by 2020. The big numbers have already attracted companies like Yahoo and CBS into the race. But things may be about to change as legality concerns arise.

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