Unicorns Dropping Like Flies: First Dropbox; Then Square; Now Fidelity Cuts Snapchat Valuation By 25%

First it was Dropbox.
Two weeks ago we reported that one of the numerous “unicorns” prancing around Silicon Valley was about to have a very rude wake up call when Dropbox was warned by its investment bankers that it would be unable to go public at a valuation anywhere near close to what its last private round (which had most recently risen to $10 billion from $4 billion a year ago) valued it at.
Than it was Jack Dorsey’s “other” company, Square.
Last last week: “today another company realized today just how big the second “private” tech bubble, one we profiled first in January of 2014, truly is. That company is Jack Dorsey’s Square, which earlier today filed a prospectus in which it said that the “initial public offering price per share of Class A common stock will be between $11.00 and $13.00.” Assuming a mid-point price of $12 and applying the 322.9 million shares outstanding after the offering, it means a valuation of $3.9 billion. The problem is that in its last private fundraising round, Square was valued at about $6 billion according to ReCode.”
Today, it’s the turn of Snapchat, the fourth most highly valued private tech start up.

This post was published at Zero Hedge on 11/10/2015.