A not so very long time ago — about a year and a half — VCs and private equity groups were enthusiastic about innovation — and deeply worried about missing out on the “next big thing.”
A lot of questionable ideas got funding — the WSJ this morning noted Beepi Inc, a business that specialized in selling cut-rate cars with big, shiny bows on them.
They are not around anymore — $120 million in funds raised was not enough to get to profitability with its idea, and it found it was unable to raise more cash from impatient investors. As of February, Beepi closed its doors, laid off its 270 employees and packed up the ping-pong table in its Mount View HQ.
In 2014 and 2015, mutual funds, hedge funds and other investors dropped billions into companies that these days seem a little too quirky to ever get to an IPO or buyout. As of 2017, investors are a bit more interested in what they can predict…