Another 'Unicorn' IPO Implodes Spectacularly



ORIGINAL POST

Posted by Ed 58 days ago
AsiaXPAT (Hong Kong) - Anyone who is running a 'unicorn' business at a loss, should take heed of this latest news.   
 
Casper, a company sells mattresses (a high tech business!!!) that valued itself at over USD1,000,000,000 went public last week and has now had discovery applied to its valuation by the stock market.   
 
In just over a 3 days, the share price has collapsed 37% or a whopping 72% from its Pre-IPO valuation. 
 
Just because someone claims something is worth a billion dollars, does not make it so.
 
It's going to  get a whole lot harder for these money burning beasts to raise new money.
 
Read More on Wolf Street

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COMMENTS

Ed 42 days ago
UPDATE -  Funding is Drying Up Big Time Now
 
Why am I not surprised that this venture is failing?
 
Cafe X has raised USD14.5M and operates 'robot' coffee shops in San Francisco.   It  is running out of money and now has only two kiosks.
 
Robotic coffee shops have existed for years.   Most petrol stations have them.   And they are one step up from 3 in 1 Nescafe packets or the coffee- flavoured mud that is served up at Tim Horton's (Canadians will know what I am talking about)
 
Maybe it would have occurred to the founders (and investors) that people prefer barista coffee?
 
Read about more failing Unicorns on Wolf Street 
 
 
Coffee Monopoly in Hong Kong - Invest Now!
 
Did I mention my coffee shop idea?    What I plan to do is corner the market in Hong Kong kinda of like Welcome and Parknshop have done - but I will focus on coffee.
 
I will purchase the absolute best beans in the world and I will sell coffee at half the price of every coffee shop in Hong Kong.   I will gut Starbucks and Pacific Coffee and I will dispatch Uncle Russ to the retirement village. 
 
I will open next to every coffee shop in the city and drive the whole lot into bankruptcy.
 
THEN - I will up the prices of my coffee to HKD100 per cup.   And if anyone dares to challenge my monopoly, I will open THREE coffee shops right next to them, and sell at half price.
 
The thing is, I will only need to do that once, because every would-be coffee shop owner will understand that it is futile to take me on.
 
If any VC's are reading this, you can ping me on Linked In and I will pass along my bank account number so we can get underway.
  
 
 

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Ed 42 days ago
UPDATE - Softbank Burned for USD375 Million by Zoom Pizza
 
This is a tough decision.   Idiocracy 2.0 or Zoolander 2.0.   I am going to go with Zoolander because the following situation lends itself to another classic scene reminiscent of the male models engage in a petrol fight.
 
 
"Zume did a so-so job delivering its first pizzas in 2016. Although some reviewers on Yelp appreciated the fresh ingredients and speedy delivery—“Clearly better than low end pizza places,” one wrote—several complained about undercooked dough or small amounts of sauce and toppings.
 
Eventually, Collins’s team gave up on the dream of baking the pies while driving to customers, according to two people familiar with the matter.
 
The cheese tended to run everywhere as the trucks turned or hit bumps in the road. Instead, the oven trucks began parking in central locations, with runner cars or mopeds transporting the cooked pies"
 
Read more on Bloomberg  
 
 

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Ed 35 days ago
Another Softbank Company Heads for the Dumpster
 
OYO Hotels is a bug headed for a windshield.
 
The budget hotel operator, with aspirations to be the largest hotel company in the world, is slashing its global workforce by 5000 as it gets hammered by:
 
1.  A business model that makes zero sense and has not a chance in hell of every being profitable 
 
2.  An environment where it is nearly impossible to raise new money to keep the bonfire blazing due to the endless unicorn fiascos of which WeWork (otherwise known as WeWTF) is the poster child
 
3.  The tourism hellfire sparked by the coronavirus that is currently circling the planet resulting in epic numbers of trip cancellations.
 
 
Read More on Bloomberg  
 

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