Unicorns are seeing their valuations sliced, some by 40 percent, as tracked by European company Dealroom.com.

With less venture capital funding, some unicorns are suddenly having to reconsider their investment strategy.

In Europe, where tech startups employ more than two million people, 38 percent are pausing their hiring processes, according to a report from talent.io, a Paris-based recruitment firm.

Venture capital investment in U.K. healthtech doubled between 2017 and 2019, reaching £1.7 billion ($2.1 billion), according to Tech Nation.

This divergence between the overfunded unicorns and nimble startups represents a tale of two cities, according to Sim Desai, who oversees the secondary market at Setter Capital.