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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From E-Commerce to Web 3.0: Wayfair Impressive Even Under Public Scrutiny

According to an IBIS World report, the US online home furnishings market has grown 20% annually over the period 2010 through 2015 to be worth $8 billion. Over the same period, the US online house furniture market grew 16% to $16 billion. Wayfair (NYSE: W) is the largest pure-play online retailer of home goods in the country. Last year, it went public and even under public scrutiny, its performance remains impressive.

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Billion Dollar Unicorns: Warby Parker Joins the Club

According to a Grand View Research report, the global market for eyewear is expected to reach $142.18 billion by 2020 from $90 billion in 2013. The North American eyewear market, which was valued at $35 billion in 2013, is projected to reach $47 billion in 2020. Market research company IBISWorld estimates the US market for online sales of eyeglasses and contact lenses to be worth $344 million. Online eyewear retailer Warby Parker has joined the Billion Dollar Unicorn Club riding on the success of its niche e-commerce business. >>>

Billion Dollar Unicorns: Online Lender SoFi Puts Off IPO Plans

According to Inside Mortgage Finance, non-banks were responsible for 37.5% of US home loans in 2014, up from 26.7% in 2013. PwC expects non-banks to grow at a 33% annual rate to $150 billion by 2025. Social Finance Inc. is one such online lender that has seen its valuation triple in six months after it joined the Billion Dollar Unicorn Club. >>>

Billion Dollar Unicorns: Beibei the Baby of the Club

According to a Euromonitor report, the baby and child-specific products market has seen double digit growth in China due to the comparatively big number of newborns and rising disposable incomes. Over the period 2009 through 2014, China’s annual childbirths have reached an average of 15-17 million. The recent relaxation of the country’s One-Child Policy is only going to add to that number. Niche commerce player Beibei is already leveraging this high-growth market along with the rising Internet adoption in the country to achieve the Billion Dollar Unicorn status.

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