HR startup Zenefits is the latest tech unicorn to feel the wrath of an investor downgrade.
It’s becoming clear that even if the current Silicon Valley boom isn’t over then at least the mania is draining from the market.
For businesses looking for investor funds, this is bad news as money is going to be increasingly hard to come by. Making matters worse, a funding shortage will cause some of the companies with high burn rates to go broke which will increase investor caution.
We may be about to see a lot of the tech startups looking closely at how they are spending their money and that may not be a bad thing.