About 20% of Tech Unicorns Will Die, Accel Partner Predicts

There are more than 1,000 technology unicorns, meaning venture-backed companies worth $1 billion or more, but at least 1 in 5 are likely to fail, said Rich Wong,a partner at venture capital firm Accel Partners.

“I think maybe out of that thousand, 20% fully die. The end,” Wong said Thursday at the Bloomberg Tech conference in San Francisco.

The estimate reinforces what’s become a grim calculus for many companies. Tech startup valuations soared during the 2021 pandemic boom — before crashing back to earth as interest rates rose and venture capital investments fell.

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