Benchmark's, Bill Gurley, explains in depth why he believes we are in a tech bubble and how this will effect the venture/tech industry. Bill believes “There has been a fundamental sea-change in the investment community that has made the incremental Unicorn investment a substantially more dangerous and complicated practice... All Unicorn participants—founders, company employees, venture investors and their limited partners (LPs)—are seeing their fortunes put at risk from the very nature of the Unicorn phenomenon itself.”
In February of last year, Fortune magazine writers Erin Griffith and Dan Primack declared 2015 “The Age of the Unicorns” noting — “Fortune counts more than 80 startups that have been valued at $1 billion or more by venture capitalists.” By January of 2016, that number had ballooned to 229. One key to this population growth has been the remarkable ease of the Unicorn fundraising process: Pick a new valuation well above your last one, put together a presentation deck, solicit offers, and watch the hundreds of million of dollars flow into your bank account. Twelve to eighteen months later, you hit the road and do it again — super simple.