Box, Unicorns and the State of SaaS
Elkington called Box’s earnings a healthy sign of progress.
He also shared his views on unicorns, a term used to label start-up companies whose valuations exceed $1 billion. Even though Elkington dislikes the word “unicorn,” preferring “stallion,” he still says they are providing incredible value by disrupting the market.
Many seem to think the current state of technology is on the verge of another bursting tech bubble.
Elkington noted that he doesn’t fully subscribe to that notion.
While he certainly believes there is a bubble, he doesn’t foresee an audible pop that will spell disaster for the tech industry.
He said we’re more likely to see a deflation in the market and the purging of organizations with valuations based solely on user count and page views.
In fact, this process started about six to eight months ago as private valuations have come down 30 percent to match what we’re seeing in the public market.
Elkington said he’s convinced annuity businesses, like Box, Dropbox and XANT, are going to excel in this environment.
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Image credit: Yosuke Muroya