Unicorns Become ‘Cockroaches’ When Tech Funding Dries Up https://www.ndtv.com/world-news/its-cockroach-time-for-unicorns-as-funding-dries-up-3423778 By Yoolim Lee
Oct. 11, 2022 https://news.bloomberglaw.com/private-equity/unicorns-become-cockroaches-when-tech-funding-dries-up fter reaching sky-high valuations, tech companies the world over have seen the worst year of their lives amid surging inflation and interest rate hikes. Many are cutting jobs and shutting parts of their operations to shore up balance sheets.
the startup ecosystem is facing headwinds. Global venture funding slumped to $74.5 billion in the past three months, its lowest level in nine quarters, according to CB Insights. That represents a 34% quarterly drop, the biggest in a decade.
"Not-so-good startups have been filtered out. Now is the time for real startups to shine, go out and raise from value investors," said Aung Kyaw Moe, who sold a chunk of his 19-year-old payments company 2C2P to Ant Group Co. this year.
Patrick Cao, GoTo, said his firm will focus on reducing subsidies and streamlining operational expenses while offering services that merchant partners can monetize further. "We've accelerated our break-even targets," he said, "but there's still a lot of work to be done."
As in previous downturns, efficiency is emerging as a key focus.