the last couple years have spoiled a
tech industry with high valuations easy
money and overly forgiving investors and
we've seen a ton of successful initial
public offerings for unicorns unicorns
are newer startup style firms with
valuations above 1 billion dollars and
they've been allowed much higher burn
rates or money that's essentially lost
than ever before for investors that
means risk somehow we've gotten very
comfortable with you know 20 million
dollar a month to burn rates when did
that become okay but it appears that all
that risk and the time of the unicorn is
ending unfortunately for payment company
Square this change has come just in time
for its IPO the company isn't
necessarily doing poorly but its IPO
filing valuations should alert other
unicorns that the future isn't going to
be so easy square plans to price its IPO
at eleven to thirteen dollars a share
putting the company's market cap around
four billion dollars that's a lot of
money but it's about two billion dollars
less than a year ago when it reportedly
had a six billion dollar private
valuation squares devaluation is a sign
that markets could finally be starting
to correct on some of the more risky
investments and a sign that unicorns
will likely be more difficult to spot in
public anyway tech companies on the
private market don't have to share
financial information with the public so
some companies are staying private and
probably raking in the cash this
includes companies like Pinterest and
Airbnb also uber whose founder and CEO
Travis kalanick said at the wsj D live
conference that he plans to keep the
company private at least for a few more
years for newsy I'm Lea becerra