. Unprofitable unicorns’ public pain « JO LEE MAGAZINE

Axios – The current pivot to profitability in the world of venture-backed companies is far from unprecedented. What’s new is the degree to which the gory details of corporate finances at former unicorns like Coinbase and Robinhood are now public.

When interest rates were low and liquidity was abundant, young companies realized that they could raise large sums of money at multi-billion-dollar valuations if they invested as much as possible in future growth — a very expensive strategy sometimes known as blitzscaling.

Now that money is more expensive and less abundant, it has stopped flowing to almost all such companies.

Find out more about this at Axios.

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