Charlize Chitness, a Business correspondent for The Economist, discusses the alarming decline of unicorns in the tech industry, attributing it to economic pressures and a shift towards sustainable growth. Holly Berman, Social media editor at The Economist, provides insights into the return of Parler, touching on its rocky history with political extremism and the changing dynamics of social media platforms. The conversation also highlights the urgent housing crisis in sub-Saharan Africa and innovative solutions to secure affordable housing.
Tech unicorns face challenges due to market uncertainties and decreased investor interest.
Africa's housing crisis requires innovative financing models to address inadequate supply and high construction costs.
Deep dives
The Vulnerability of Tech Unicorns
Tech unicorns, once thriving in the Silicon Valley environment, are now facing challenges due to rising interest rates, inflation, and market uncertainty. The influx of crossover investors, who previously fueled the unicorn boom, has decreased significantly, leading to a decline in new unicorn creations. With American startup funding nearly halving and existing unicorns struggling to find exits, the era of high valuations and extensive funding for unicorns seems to be coming to an end.
Challenges and Solutions in African Housing
Africa is experiencing a dire housing crisis due to rapid population growth and inadequate housing supply. About half of Africa's urban population resides in slums, highlighting the urgent need for affordable housing solutions. Challenges such as high construction costs, inefficient building practices, and limited access to financing contribute to the housing crisis. Innovative financing models like rent-to-own approaches and incremental building strategies are emerging as potential solutions to provide decent, affordable housing for African communities.
Parla's Resurgence and Association with January 6th
Parla, a social media platform known for its far-right user base, faced scrutiny and legal challenges following its association with the January 6th Capitol riots. Despite its troubled past, Parla is making a comeback under new ownership. The platform disputes its link to the events of January 6th and aims to return with a focus on technology rather than politics. While Parla attempts to rebrand, the platform's reputation remains tarnished, raising uncertainties about its ability to attract users back amidst evolving social media landscapes.
The birth rate of unicorns—firms with a valuation north of $1bn—has plummeted, and prior investors in them are eyeing what exits exist. We ask why the species is endangered. The struggle to finance and build homes is contributing to a profound housing crisis in sub-Saharan Africa (08:34). And the return of Parler, a darling social-media platform for America’s far right (17:56).
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