{"id":973,"date":"2017-04-27T07:53:17","date_gmt":"2017-04-27T07:53:17","guid":{"rendered":"http:\/\/isadviser.com\/?p=973"},"modified":"2017-04-27T07:58:43","modified_gmt":"2017-04-27T07:58:43","slug":"uber","status":"publish","type":"post","link":"https:\/\/isadviser.com\/en\/uber\/","title":{"rendered":"Huffington post : What Happens If Uber Fails?"},"content":{"rendered":"

The lesson here is that people trying to raise venture capital shouldn\u2019t be worried about what Uber, specifically, might do to the economy if the company fails.<\/h4>\n

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The thing about a market bubble is that you don\u2019t really know how big it is until it pops. So it doesn\u2019t pop, and doesn\u2019t pop, and doesn\u2019t pop, until one day it finally pops. And by then it\u2019s too late.<\/p>\n

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The dot-com collapse two decades ago erased $5 trillion in investments. Ever since, people in Silicon Valley have tried to guess exactly when the next tech bubble will burst, and whether the latest wave of investment in tech startups will lead to an economic crash. \u201cA lot of people who are smarter than me have come to the conclusion that we\u2019re in a bubble,\u201d said Rita McGrath, a professor of management at Columbia Business School. \u201cWhat we\u2019re starting to see is the early signals.\u201d<\/p>\n

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Those signals include businesses closing or being acquired, venture capitalists making fewer investments, fewer companies going public, stocks that appear vastly overpriced, and startup valuations falling.<\/p>\n

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Then you have a company like Uber, valued at $70 billion despite massive losses, and beleaguered by one scandal after another. In 2017 alone Uber has experienced a widely publicized boycott that led to an estimated half-a-million canceled accounts, high-profile allegations of sexual harassment and intellectual property theft, a leaked video showing its CEO cursing at an Uber driver, a blockbuster New York Times<\/em> scoop detailing the company\u2019s secret program to trick law enforcement, and multiple senior leaders either resigning or being forced out<\/p>\n

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\u201cAs someone trying to raise [venture capital] right now, I am very concerned that this is going to implode the entire industry,\u201d one person wrote in a forum on the technology-focused website Hacker News earlier this week. It\u2019s understandable that investors and entrepreneurs would be \u201cwatching this Uber situation unfold closely,\u201d as Mike Isaac, the New York Times<\/em> reporter, put it in a tweet about the Hacker News post. Especially at a time when rising interest rates give investors more options, and ostensibly make the highly valued pre-IPO companies like Uber less attractive.<\/p>\n<\/div>\n

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But how much is the tech industry\u2019s fate …<\/p>\n

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Read more<\/a><\/span><\/strong>
\n\"uber\"<\/a><\/p>\n<\/div>\n

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The lesson here is that people trying to raise venture capital shouldn\u2019t be worried about what Uber, specifically, might do to the economy if the company fails.   The thing about a market bubble is that you don\u2019t really know how big it is until it pops. So it doesn\u2019t pop, and doesn\u2019t pop, and […]<\/p>\n","protected":false},"author":3,"featured_media":975,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false},"categories":[26],"tags":[60,150,151,17,126,146,149],"_links":{"self":[{"href":"https:\/\/isadviser.com\/en\/wp-json\/wp\/v2\/posts\/973"}],"collection":[{"href":"https:\/\/isadviser.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/isadviser.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/isadviser.com\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/isadviser.com\/en\/wp-json\/wp\/v2\/comments?post=973"}],"version-history":[{"count":3,"href":"https:\/\/isadviser.com\/en\/wp-json\/wp\/v2\/posts\/973\/revisions"}],"predecessor-version":[{"id":979,"href":"https:\/\/isadviser.com\/en\/wp-json\/wp\/v2\/posts\/973\/revisions\/979"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/isadviser.com\/en\/wp-json\/wp\/v2\/media\/975"}],"wp:attachment":[{"href":"https:\/\/isadviser.com\/en\/wp-json\/wp\/v2\/media?parent=973"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/isadviser.com\/en\/wp-json\/wp\/v2\/categories?post=973"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/isadviser.com\/en\/wp-json\/wp\/v2\/tags?post=973"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}