INSUBCONTINENT EXCLUSIVE:
Every year, the tech industry experiences moments that serve as guideposts for future entrepreneurs and investors looking to profit from the
wisdom of the past.In 2017, Susan Fowler published her heroic blog post criticizing Uber for its culture of sexual harassment, helping spark
the #MeToo movement within the tech industry; 2018 was the year of the scooter, in which venture capitalists raced to pour buckets of cash
into startups like Bird, Lime and Spin, hoping consumer adoption of micro-mobility would make the rushed deals worth it.These last twelve
months have been replete with scandals, new and interesting upstarts, fallen CEOs and big fundraises
trends that defined this year is long
on venture capital, followed by honorable mentions
As always, you can email me (kate.clark@techcrunch.com) if you have thoughts, opposing opinions, strong feelings or relevant
anecdotes.SoftBank Group Corp
chairman and CEO Masayoshi Son speaks during a press conference on November 6, 2019 in Tokyo, Japan
(Photo by Alessandro Di Ciommo/NurPhoto via Getty Images)1
SoftBank announced its Vision Fund in 2016, holding its first major close a year later
Ultimately, the Japanese telecom giant raised roughly $100 billion to invest in technology startups across the globe, upending the venture
capital model entirely with its ability to write $500 million checks at the flip of a switch
Most recently, SoftBank confirmed it was selling its stake in Wag, the dog-walking business back to the company, nearly two years after
funneling a whopping $300 million in the then-three-year-old startup
Once an unstoppable giant, SoftBank has been forced to return to reality after years of prolific dealmaking
The biggest story of 2019 was WeWork
Another SoftBank portfolio, in fact the former star of its portfolio, WeWork filed to go public in 2019 and gave everyone full access to its
financials in its IPO prospectus
In August, the business disclosed revenue of about $1.5 billion in the six months ending June 30 on losses of $905 million
scrapped its IPO after ousting its founding CEO Adam Neumann, whose eccentric personality, expensive habits, alleged drug use, desire to
For years, Silicon Valley (or New York, where WeWork is headquartered) has allowed high-growth companies to raise larger and larger rounds
of venture capital, understanding that eventually their revenues would outgrow their expenses and they would achieve profitability
These IPOs ignited a wide-reaching debate in the tech industry: does Wall Street care about profitability? Should startups prioritize
Meanwhile, the threat of a downturn had startups across industries cutting back and putting cash aside for a rainy day
For the first time in years, and as The New York Times put it, Silicon Valley began trying out a new mantra: make a profit.3
According to CNBC, nearly 150 CEOs left their post in November alone, setting up 2019 to break records for CEO departures with nearly 1,500
Why it matters: All of these departures were caused by varying factors
I will focus on WeWork and Away, which took center stage of the startups and venture capital universe
The recent Away debacle reinforces the role of the tech media and its ability to present well-reported facts to the public and enact
significant change to business as a result
situations proved standards for startup CEOs has shifted
Whether that shift is here to stay is still up for debate.4
The IPO market was unforgiving to unicorns: WeWork never made it to the stock markets, but Uber, another scandal-ridden unicorn, did
The company (NYSE: UBER), previously valued at $72 billion, priced its stock at $45 apiece in May for a valuation of $82.4 billion
It began trading at $42 apiece, only to close even lower at $41.57, or down 7.6% from its IPO price
Not stellar, in fact, quite bad for one of the largest venture-backed companies of all time
Other companies like Lyft and Peloton had disappointing results this year confirming the damage inflated valuations can cause
startups-turned-public companies
value of these high-flying companies
As a result, many companies, particularly consumer tech businesses, may delay planned offerings, waiting until the markets stabilize and
become hungry again for big-dreaming tech companies.
