In the wake of Plastc (to be clear, unmistakenly NOT a unicorn) filing for chapter 7 leaving millions of pre-orders unfulfilled, Fortune notes "Startups Rarely File for Bankruptcy. Could that Change?" Welcome to the party, Fortune. It has already started to change. The irony is that bankruptcy should actually be taken as a sign of success, to some degree. Why? Because it may indicate that there is actually something salvageable, e.g., IP. Otherwise, you're looking at a mega-failure cloaked in an acqui-hire, see, e.g., Tilt (an Andreesen Horowitz bust - highly recommend reading the link), Beme (a Casey Neistat joint). Which humorously, startups/VCs still try to spin as successful exits rather than the dumpster fires they were.