Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Los AngelesWeWork’s crash last year was a sign of what is to come for technology companies. Venture capital funds—whether due to WeWork, the handful or failed tech IPOs in 2019 or simply changing market trends—will now want evidence of profitability, not just growth and market share. This is a turnaround for tech companies, which have focused on rapid growth and expansion first.

“Venture capital will no longer fund these continuous losses any more. They will stop funding these companies until they see a path to profitability,” David Shulman, senior economist for the Ziman Center and UCLA Anderson Forecast, tells GlobeSt.com. “Tech firms will have to go for profitability as opposed to just going for growth.”

Kelsi Maree Borland

Kelsi Maree Borland is a freelance writer and editor living in Los Angeles whose work has appeared in such publications as Travel + Leisure, Angeleno and Los Angeles Magazine.

More from this author


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.