Business Insider: HP Enterprise just bought a $1 billion startup for $650 million
HP Enterprise has bought SimpliVity, a Massachussetts-based storage startup, for $650 million in cash.
At the time of SimpliVity's last fundraising, in March 2015, the company had declared that it was valued at "more than $1 billion." All in all, SimpliVity had raised $276 million from investors like Kleiner Perkins, Accel, and Waypoint Capital.
That discounted purchase price is not an encouraging sign for the viability of "unicorn" startups of $1 billion or more. In 2017, companies like Snap, Spotify, and Dropbox will likely have to justify their enormous valuations to Wall Street, and deals like this one will only enhance investor skepticism.