Bogus GDP Growth Fools Investors
Which is worse: Ordos style waste or U.S. Venture Capital (VC) funded Unicorns with negative gross margin? See a blog by Venture Capitalist Fred Wilson “And so most of the companies out there who are growing like weeds using a negative gross margin strategy are going to find that the capital markets will ultimately lose patience with this strategy and force them to get to positive gross margins, which will in turn cut into growth and what we will be left with is a ton of flatlined zero gross margin businesses carrying billion dollar plus valuations. And that is what Gurley and Moritz see when they look out into next year and the year beyond.” (Gurley and Moritz are