Summary #1036

The start-up bubble is finally bursting (a little bit)
  • Insane start-up market growth is slowing down, with over 30 start-ups cutting 8,000 jobs in just the last 4 months, and much fewer investments in young companies.
  • Startups like Casper, a mattress market disruptor that raised over $300 million in venture capital, are plummeting as soon as they enter the stock market.
  • Other examples include e-scooter giant Lime that pulled out of several countries, or WeWork, which announced a 2,400 people layoff last November.
  • Even marijuana start-ups are facing significant difficulties, despite having collectively raised $2.6 billion in 2019.
  • This might not become the next dot-com bubble, but it is a sign that start-ups cannot do irrational things anymore, like forgoing profit in order to disrupt markets.


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