The higher interest rates have made access to venture capital more difficult and expensive for growth-stage companies. Money is scarcer and investors have become more demanding in evaluating the projects they fund.
Many companies that achieved unicorn status, meaning valuations exceeding one billion dollars, now face difficulties raising new funding. These companies are called "zombie unicorns" because they manage to maintain their high valuations without needing to carry out new investment rounds.
The phenomenon is due to companies intentionally avoiding launching new funding rounds. By not seeking new investors, they do not submit their valuation to a re-evaluation that could be negative in a less favorable economic context.
This situation represents a significant change in the venture capital ecosystem, where the paradigm of rapid growth and constant fundraising has been replaced by a more cautious approach to value preservation.
