“Things have been frothy, and you see a lot of dumb money. The music’s going to stop and not a lot of people will have a chair,” said 48-year-old Suchet, a 500 Startups mentor who says he’s been seeing companies now with $10m valuations and no product. “There will be a lot of dead bodies. A lot of dead bodies. There’ll be a lot of blood.”
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The last few months have been hard on Silicon Valley startups, as a series of “down rounds” across the tech world chop established companies in half and stock collapses move billionaires back to millionaires. There’s a sense that San Francisco’s excess is peaking; investors asking for their money back, house-flipping seminars popping up across Facebook, and gold-flaked pizza signal the end of times.