Heard of an amazingly bad startup from Uber driver in San Francisco. You rent out your (exorbitantly expensive, small) San Francisco apartment during the day to startups that can't afford real office space. They save money and your apartment "generates income" during otherwise idle hours when your stuff would otherwise just be sitting there, unmolested by strangers.
It was not clear whether the same startup would work from your apartment every day (can they keep some pens and letterhead there, then?), or if every morning the startups would look for a new empty apartment.
More interestingly, this startup is marketing itself via Facebook ads. That is important because the supposedly mature, profitable startups in advertising businesses (FB) derive revenue from these dubious new startups. Since the dubious new startups are unprofitable and funded by equity, when they are eventually exposed as worthless mimics, not only will they evaporate but so will significant amounts of revenue at the "mature" unicorn companies.
Previously on the startup bubble:
- March 10, 2011: Good Article on the Second Dotcom Bubble
- October 14, 2011: Investing at Random
- September 15, 2014: WSJ: "Venture Capitalist Sounds Alarm on Startup Investing"
- November 23, 2014: "The TechCrunch Bubble Index: Parsing Headlines to Quantify Startup Hype"
- February 21, 2015: More Evidence Of Startup Bubble: Metastartups
- May 1, 2015: The Startup Bubble of "Secret" and "Color.com"