DoorDash, the food-delivery service, has yet to earn a profit, but that hasn’t stopped investors from trucking cash to its porch. The firm held a USD$600-million financing round this May, more than tripling its value from last August, to USD$12.6 billion.
This may sound like a dream scenario for startup founders—endless capital to propel their companies’ valuations to the moon. Indeed, massive sums of venture capital have helped spawn some of the world’s most successful companies, like Facebook, Google and Spotify. And venture capital firms are more eager than ever to pony up, deploying a record USD$130.9 billion last year, while holding a decade-high USD$128.5 billion in reserve.
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