If Silicon Valley’s unicorn bubble bursts, what legacy will it leave?

Some unicorns have astonishing valuations, which are based on the price that new investors are willing to pay for a share. The dotcom boom was based on clueless and irrational exuberance about the commercial potential of the internet, so when it became clear that startups such as Boo.com and Pets.com were never likely to make a profit, the bubble burst as investors tried to get out. So there was a kind of “Cambrian explosion” of new startups, many of them, such as Uber and Airbnb, based on the insight that markets where digital platforms operate are winners-take-all (WTA) ones.

Source: www.theguardian.com