Fast-delivery start-up Milkrun has big aims of taking down grocery goliaths such as Woolies and Coles. But the market has turned, and the giants could take it out.
The group’s renegade founder, Masayoshi Son, who oversaw the company’s spectacular bets on firms that embodied the decade-long tech boom such as WeWork and Uber, appeared chastened when fronting investors.
Cash-burning start-ups will find going back to the private markets a tougher challenge for the foreseeable future. While VC companies continue to raise large sums from investors for tech-focused funds, those asking for funding will need to show more than just customer buzz and growth to score a big cheque.
After collecting nearly $1 billion from investors towards the end of last year, Gorillas has spent months trying to raise more cash.that US growth funds had baulked at giving money to Gorillas without the young firm taking a haircut on its $US3 billion valuation.The start-up’s team might need to turn to large sovereign wealth funds based in the Gulf, the investor said, where despite some dodgy bets, investors remain hungry to get into Western pre-IPO companies.
What might happen to Milkrun is already happening elsewhere. And the fate of the company continues to be hotly debated among Australian start-ups and investors.
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