Bill Gurley just wrote an excellent essay on the state of the unicorn market.

Gurley covers the financial and emotional forces at play and offers great advice for founders of these highly valued billion-dollar-plus companies.

As a result, many companies today operate with unsustainable burn rates that need to be reduced before all their money goes up in smoke.

So I advise all of our startups to remain focused on growth while spending parsimoniously.

We are all influenced in our investment decisions by psychological tendencies like recency bias and confirmation bias.

If many of our portfolio companies are having a hard time raising follow-on rounds, we re more reluctant to fund a good idea that isn t quite an awesome idea.

The text above is a summary, you can read full article here.