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Forget unicorns, chase 'cockroaches' says Flickr founder Caterina Fake

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She couldn't pick a more pleasant animal than a cockroach?

Valuations for tech startups seemingly know no bounds but the co-founder of Flickr told CNBC that she believes tech startups worth $1 billion or more – the so-called "unicorns" of the industry – are "highly over-valued."

"I recently wrote a blogpost about this which was about the unicorns and the cockroaches. I do think that the unicorns are highly over-valued," Caterina Fake, who co-founded the photo sharing site Flickr and recommendations engine Hunch, told CNBC Wednesday.

"There is this accumulation of capital in a very small number of companies and this is very bad for the eco-system in general and there are thousands of very sturdy, hard-working and long-lasting 'cockroaches', as I call them, that is companies that will last through difficult times in the rise and fall of economics of tech."

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