The Business Times
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Zombie unicorns are haunting Silicon Valley

Years of frothy valuations are creating a nightmare

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Published Mon, Jun 22, 2026 · 07:29 PM
    • More broadly, the fundraising downturn has punctured the ability of Silicon Valley's unicorns to raise more money at their old valuations.
    • More broadly, the fundraising downturn has punctured the ability of Silicon Valley's unicorns to raise more money at their old valuations. PHOTO: REUTERS

    FANTASTIC beasts roam Silicon Valley. Locals are familiar with the unicorn, a startup valued at more than US$1 billion; the centaur, worth US$100 million; and the decacorn, with a valuation of US$10 billion.

    Lately, another creature has been stalking the land: the zombie unicorn, a company once worth more than US$1 billion, now a mere shadow of its former self. It is a prospect that keeps venture capitalists awake at night.

    By May 2026, 332 of the 1,900 unicorns in a database maintained by Ilya Strebulaev of Stanford University had raised money at a valuation at or below their peak.

    Venture capitalStock MarketsPrivate capital

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